Poland, the heart of Europe, is known for its rich history, heritage, and culture, as well as the naturally beautiful Tatra Mountains and Masurian Lakes. Since World War II, the country has experienced significant economic growth. 

From a core communist state, it evolved into a modern and market-oriented economy. The transition, of course, didn’t come about smoothly. Poland suffered from inflation, food shortages, strikes, and a growing debt burden, which actually led to the collapse of the communist regime in 1989.

That led to Poland’s resilient and growing economy, which we know today. In 2023, the real GDP growth in Poland was at just 0.1%. However, within just a year, in 2024, it grew by 3%. This rebound is attributable to the rise in the minimum wage growth – from PLN 3,000 in 2023 to PLN 4,300 in July 2024 – which increased the disposable income of the people and, hence, drove the average consumer spending up by 4% from 2023 to 2024.

The government, too, secured substantial EU pandemic recovery funds, amounting to USD 9.96 billion in 2024. These funds are being invested in modernizing infrastructure, including transportation, energy systems, digital and green transformation projects, and helping SMEs.

This is expected to improve business access to domestic and international markets and make Poland future-proof with all the clean technology and digital infrastructure.

These improvements and digitization make Poland more attractive for businesses, startups, and SMEs to expand their operations here. The employment rate in Poland is 72.7%, reflecting a strong labor market. This is due to the government’s emphasis on education and workforce development. 

The local market has a large pool of skilled professionals, especially in the fields of engineering, IT, and technical.

In fact, in 2023, it housed over 600,000 IT specialists, making it the largest talent pool in Central and Eastern Europe. 

Then, government initiatives like the National Recovery Plan (Krajowy Plan Odbudowy) are targeted to improve economic growth through investments in the digital arena. 

Moreover, Specialized Economic Zones (SEZs) offer conducive conditions for businesses with tax incentives and infrastructure support. New businesses can enjoy complete exemption from corporate income taxes, property taxes, and financial support via grants and subsidies by the Polish government.

We can say that Poland’s economic growth, favorable market conditions, and supportive government policies all make it an attractive destination for investment and collaboration with independent contractors.

However, hiring independent contractors in Poland is not easy. You need to have a thorough understanding of the local employment laws and compliance practices. There are also risks involved in misclassifying employees or contractors, which can lead to severe penalties. 

In this article, we will talk about everything you need to know about hiring and working with independent contractors in Poland. 

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Who are Independent Contractors in Poland?

Independent contractors are self-employed individuals who provide services in a B2B arrangement instead of adopting a traditional employment contract approach. They work under a service contract/agreement and are liable to pay their own taxes and insurance and bear other expenses. 

Independent contractors provide paid services (at times, products) to their clients.

In Poland and most other countries, they are not classified as employees. They are not given the same benefits like health insurance and retirement benefits, paid leaves, or salaries above the minimum wage rate (as of January 2025, which is 4666 PLN). 

On a positive note, that gives these independent contractors the freedom and flexibility to work as they feel at ease. They aren’t bound by the employee-employer relationship. 

Employees Vs. Independent Contractors

In Poland, employees are protected by labor legislation, or, in other words, the Polish Labor Code. The labor code covers all important aspects of employment, including the obligations of both employer and employee, their rights, employment relationship, holidays, working time, and other issues regarding the remuneration and termination process.

The labor code also regulates other concerns, such as occupational health and safety matters and employee notice periods on termination. Civil law contracts (like independent contractor’s service agreements) are governed by the civil code.

Responsibilities of an Employer

As per the Polish Labor Code, the employer has a certain set of responsibilities and bears various risks, too.

Supervision and Control

The employer checks the employees’ performance and supervises them personally. The employee is also required to do the job themselves and cannot delegate it to others by themselves. The timelines, process of doing work, and manner are all dictated and overseen by the employer.

Work Continuity

The employee-employer relationship is long-term. It’s not like a one-time project and doesn’t end easily, either. There are specific laws about termination that must be followed.

Salary

The employees are paid a salary each month. They are also paid for overtime. The salary cannot be zero (no work for free allowed!) and must be in line with the Polish Labor Code on the minimum wage rate.

Employer Risks

The employer has to bear the consequences of the employee’s ‘non-culpable’ mistakes. In case of business loss, the employer – and not the employee– has to bear it. The employer also has to ensure the employees receive timely payments during operational disruptions.

Independent Contractors

Unlike an employment contract, the Civil Law contract is more flexible and lower in cost for the employers. It bypasses all the labor law protections and is quite easy to terminate.

There are two types of civil law contracts in Poland:

  • Contract of Mandate (Umowa Zlecenia): The most common contract for services. In this type, the party receiving the mandate or the contractor commits to perform specific legal action for the mandator or employer.
  • Contract for a Specific Task (Umowa o Dzieło): This agreement is for completing a defined or ‘specific’ task. It’s not for continuous work.

Characteristics of Independent Contractors in Poland

Here are some classic characteristics of independent contractors in Poland that set them apart from the employees:

  • They work without employer supervision
  • Independent contractors manage their own schedules
  • Unlike employees, independent contractors can delegate work to subcontractors
  • The independent contractors are paid for results, not the process or effort involved in achieving the goals
  • They don’t receive any benefits like paid leaves, social security contributions, employment protection, etc.

Consequences of Contractor Misclassification in Poland

Although it is strictly forbidden to misclassify employees as contractors and vice versa, many employers make this mistake. At times, they deliberately do this as the civil law contracts are more favorable for them and free of obligations. 

So, it’s a way to bypass the burden of the Labor Code. However, companies that deliberately misclassify contractors as employees can face severe penalties and fines imposed on them. 

Other issues that could arise due to misclassification are:

  • Lawsuit: The worker can file a claim to request official recognition of the employment relationship and entitlement to all the benefits in the labor court. The worker can also get an NGO to file the claim for them as it is statutory. If not them, the labor inspector can initiate legal proceedings against the employer if it is determined that a civil law contract was used instead of an employment contract.
  • Fines: Employers may be liable for fines or penalties depending on the lawsuit’s outcome. This is not just a financial burden for the company but also affects its reputation.
  • Retroactive Compensation: Employers may have to make retroactive or back payments, too. That includes all the unpaid wages, taxes, and social security contributions for up to 5 years.
  • Companies that misclassify their workers may even get banned from working in the country.

Key Considerations for Hiring Independent Contractors

When hiring independent contractors in a country like Poland, you need to consider several considerations to ensure that the process remains as legal and regulated as possible.

Understanding of Local Labor Laws

Each country has specific laws or codes that govern independent contractors. In Poland, contractual obligations are important to keep in mind. 

The service contract you have made with your independent contractor must include all the details about the scope of work, timelines, and payment terms. You also need to know the kind of contract you are entering into with the independent contractor and make sure you don’t misclassify them as your employees.

Taxes 

Independence contractors may have to pay VAT depending on the business status and the kind of work they do. As a business partner or employer, you should clarify the tax obligation with the independent contractor so double taxation or incorrect holding can be avoided.

The independent contractors themselves should also handle the Social Security contributions. Still, as an employer, you need to ensure that you do not misclassify the independent contractors as employees, as that would mean you would have to handle the Social Security contributions for them.

Work Culture and Language Barriers

Although there isn’t much of a language barrier in Poland since most people can speak in English, you need to check the contractor’s level of professionalism and lingual proficiency. 

Make sure that they clearly communicate everything with you about work and that you understand the cultural differences. Build an environment that is conducive to the independent contractors working with you.

Background Checks and References

Thoroughly check the background of the independent contractors to ensure they have the necessary skills and experience. You can look up their portfolio, references, and educational credentials. Moreover, if you work in a sensitive industry, conduct thorough criminal background checks for more security.

Labor Laws in Poland

The Labor Laws have established a fine line between employees and independent contractors in Poland. Let’s take a look at the top labor laws you must know before setting foot in the country.

Employment Contracts

The country allows indefinite fixed-term employment contracts according to the nature of your job and the duration and timeline of the project. Employees or workers may be hired for probationary periods, but those cannot extend beyond 3 months in Poland.

Moreover, it is very important to have a written agreement stating the terms of employment, regardless of the employment opportunity you offer your clients.

All employer-employee rights, obligations, remuneration, working conditions, holidays, occupational health and safety notice periods, and employee protection are covered under the Polish labor code.

Benefits and Rights

Employees are entitled to compensation for their work; in fact, it’s mandatory to pay them. They do have the right to define working hours, including breaks during work rest periods every day and week. 

For overtime, the compensation must be provided either as additional pay or time off. The employees are also entitled to benefits like Retirement Pension Insurance, Disability Pension Insurance, Accident Insurance, and sickness Insurance as outlined by the Social Insurance Institution (ZUS).

Leave Entitlements

The employees are also entitled to 20-26 days of paid annual leaves, special leaves of absence, paternity, maternity, and parental leaves.

However, note that freelance workers or independent contractors work under Civil Law agreements. These fall outside the scope of Polish labor laws, and so the independent contractors are hence not entitled to the benefits above.

Taxes and Compliance

Independent contractors in Poland are responsible for filing and paying their own taxes and making social security contributions. The Ministry of Finance governs the taxation in Poland. Poland has two income tax rates, 12% and 32%, depending on an employee’s income.

12% is charged if the annual income rounds up to PLN 120,000 and 32% if the annual income exceeds PLN 120,000.

Value Added Tax (VAT)

VAT has a standard rate of 23% in Poland. However, several smaller businesses are exempted. There are also reduced rates of 8%, 5%, and 0% for specific goods and services. Here’s more detail about the VAT: Who Must Pay VAT

How to Pay an Independent Contractor in Poland

How you pay the independent contractors in Poland depends on the type of contract you make with them. It’s usually their choice, but unfortunately, it could mean that you would have to individually bill and collect the payment through their preferred methods. But still, technology has made things easy. The most common ways to pay independent contractors in Poland are:

Through Bank Transfers

You can make domestic and international bank transfers via the SWIFT network.

Direct Deposits/ Wire Transfers

Direct deposits are very common in Poland. These may be instant or take up to a business day to complete.

Money Transfer Services

Wise is known for its competitive exchange rates and low fees. Also, Western Union can be used for quick transfers.

Paper Checks

With all the digitization, these are not widely used, but still, some independent contractors accept checks if they have the necessary banking arrangements.

Digital Transfer Services

Paypal and Payoneer are extensively used in Poland for easy and instant transfers. However, check the applicable transaction fees for these.

Top 5 Independent Contractor Providers in Poland

When taking your business across borders or international domains, hiring independent contractors is the one way to scale your operations without significant overheads. 

Let’s take a look at the top five independent contractors that provide their services in Poland.

Horizons

Horizon new homepage

Horizons is the perfect choice for those looking to manage their global workforce, not just with a presence in Poland but in different corners of the world. 

Poland is the prime location for finding talent from different industries, and Horizons is there for you with an all-in-one solution to hire and manage independent contractors. Currently, it serves over 180 countries and pays employees in over 100 currencies.

It also has over 130 HR experts who can help find, interview, and connect you with the right independent contractors for your business needs.

Deel

Deel homepage

Deel is another platform specializing in simplifying the payment processing and management of employees and independent contractors while keeping the practice compliant with Poland’s labor laws.

Deel has experts who take over all the administrative overload so you can focus on the other important aspects of your business. They ensure efficient hiring, talent acquisition, and managing and paying the independent contractors. 

Currently, it provides services in over 150 countries and has an onboarding time of 5 days.

Remote

Remote homepage

Remote is another good option for those businesses looking to hire contractors for a global business, especially in Poland. 

They look into the complete onboarding process and ensure it remains consistent with the Polish labor laws and civil code. 

Remote provides both PEO and EOR services.

Oyster

Oyster HR homepage

Another amazing platform for easy hiring and boarding of International employees is Oyster. It doesn’t matter whether you need employees on a short-term basis or long-term. It can help you find independent contractors in Poland and over 180 other countries.

Their services start from locating and identifying such employees, drafting the service agreement for them, all the way to letting them go. 

Oyster also has automated features like contract generation, payment processing, etc, for quickly onboard new employees.

Globalization Partners

Globalization Partners homepage

A comprehensive independent contractor provider that offers complete hiring solutions is Safeguard Global. It provides complete services from onboarding, compliance, and payroll management to employee benefits handling. 

It has a strong presence in Europe, and it is quite well-versed in the Polish labor market and culture. That’s not all. They also provide tailored services and provide customized solutions for your unique business needs.

The onboarding process at Safeguard Global is completed within two weeks.

Upscale in Poland with Independent Contractors

Finding and leveraging the services of independent contractors in Poland is indeed an investment. You can find flexible and cost-effective solutions and a workforce with the help of these independent contractors who can elevate your business and make it successful. 

These independent contractors will also help you through Poland’s complex tax applications and regulations. 

Contact us at Remote People today, and we will help you find your desired independent contractor services at much lower rates within just 5 days! Our team is also available to provide all-around customer support so we can guide you and help you set up your business in Poland.

Frequently Asked Questions

The independent contractors are responsible for managing their own income taxes and social security contributions. You don’t have to withhold taxes or social security contributions as an employer, but you must ensure they are not misclassified.

It is very highly recommended that you form a contractual relationship with these independent contractors. The contract should be in written form and should clearly state the scope of work, payment terms, timelines, and other important clauses regarding the deliverables.

The clearer the contract, the better aligned your expectations will be, and there will be less chance of any misunderstanding.

The most important thing to stay compliant is to understand the local labor laws, tax obligations, and hiring practices in the country. If you work with an independent contractor provider or broker like Remote People, you will be relieved of the task as we will ensure you stay compliant when hiring independent contractors in Poland.