Temporary Employment Act – the most important information
Working for a certain period of time, i.e. temporary employment, is a very popular solution in Poland, especially in industries characterized by seasonality, such as agriculture, tourism or retail. In these sectors, the need for more workers only occurs at certain times, such as harvest season, holiday or holiday season.
More and more often companies from various industries decide to hire temporary workers to carry out specific undertakings, projects or in the event of sudden increases in demand for work, e.g. when their own processing capacity is insufficient. Employers also use temporary employment when there is a need to replace full-time employees on longer holidays or sick leaves. Regulations related to this type of employment can be found in the Temporary Work Act 2003. What are the main assumptions of the act and what else is worth knowing about this method of employment?
What is temporary work?
Temporary work is a form of employment that is based on hiring temporary workers for a certain period of time. It is usually carried out by a temporary employment agency, which takes care of all the required formalities in this area.
A temporary employment contract is concluded for a short period of time, which can range from a few days to several months. Of course, the employment can be extended. It all depends on the individual needs of the employer.
Temporary work focuses on flexibility, both for employers, who quickly find the necessary replacements, and for employees, who cannot complain about the lack of variety of orders.
It is the temporary employment agency that hires a temporary worker, whom it selects in the recruitment process, and then assigns him or her to work for the employer.
The employee is employed by the agency
The Act on Temporary Work explains how unusual this form of employment is. The entity that employs a temporary worker is a temporary employment agency, which signs an appropriate contract with him. Then, the employee can be delegated to work for employers who use the employee leasing service. The Temporary Employment Act provides that the employment relationship may be based on an employment contract, but also on a contract of mandate.
Employment through a temporary employment agency means great flexibility. The employer receives quick access to very well-qualified employees, and they, in turn, can take advantage of the multitude of offers and choose one that will have a good impact on their professional experience. A temporary worker can be hired in a variety of roles, allowing them to develop their skills and expand their CV.
Employer’s obligations according to the Temporary Employment Act
The Temporary Work Act contains provisions that are aimed at protecting the employee’s interests. An employer who uses the services of an agency has obligations towards the employees employed. The Temporary Work Act specifies, among other things:
- obligation to familiarize the employee with the position,
- ensuring safe and healthy working conditions and mandatory training,
- keeping records of the employee’s time,
- rules for granting holiday leave,
- equal treatment of temporary and full-time employees.
The law specifies that a temporary worker cannot be employed on less favourable terms, and in the event of a conflict, he or she can assert his or her rights under the provisions of the Labour Code.
The employer’s obligations also include:
- Concluding contracts that specify the conditions of employment of a temporary worker, the type of work or the duration of the contract and remuneration. In a situation where the client uses a temporary employment agency – he must conclude a formal contract with the agency.
- The employer is obliged to pay remuneration to temporary workers on time.
- The employer must inform the temporary worker about his or her rights, which include the rules of remuneration, working conditions and the possibility of using additional benefits. During the period of temporary work, the employee must know his or her own rights and obligations.
- A temporary employment agency must record information about employees, their contracts and the place where they work. Employers must ensure that this type of information is updated on a regular basis.
- When renewing the contract, the employer must comply with the regulations regarding the length of employment of temporary workers.
- The employer is obliged to provide the employee with adequate health and social insurance, which of course is also available to a temporary worker.
Compliance with these obligations is aimed at protecting the temporary worker and ensuring the proper functioning of the labour market.
Temporary Work Act – the possibility of working only for 18 months
The Temporary Work Act also contains regulations on the time during which one temporary worker may perform duties for a specific employer. The duration of their performance may not exceed 18 months in a period of 36 months. This means that after this time, the employer cannot re-employ the same employee under a temporary employment contract, unless there is a break in employment.
However, there are exceptions to this provision. The Temporary Work Act allows for the employment of an employee for a period of up to 36 months, provided that he or she is assigned to perform the tasks of an absent employee or there is a need to perform seasonal or ad hoc work. So it is a classic replacement job.
If the employer intends to resume employment of an employee after 18 months, he must apply an appropriate break beforehand. The duration of this break is not specified precisely, but should be at least 3 months.
The limit of temporary work does not apply only when the type of contract signed or the scope of duties changes. Therefore, the 18-month limit ceases to apply to an employee who, for example, switches to an employment contract.
The Act aims to prevent the abuse of temporary work and in particular to protect the rights of employees. A temporary worker should therefore have better employment conditions and the possibility of professional stability in the long term.
What are the minimum wage requirements for temporary workers?
The minimum wage requirements for a temporary worker are set out in the provisions of the labour law, including the Act on the Employment of Temporary Workers and the Labour Code.
A temporary worker should receive a salary not lower than that of a person employed directly in the same position. This means that the remuneration must be equal to that received by permanent employees, because both groups perform the same work in the same way.
The remuneration of a temporary worker cannot be lower than the applicable national minimum wage. From 1 July 2024, the minimum wage is PLN 4300 gross per month, and the minimum hourly rate is PLN 28.10 gross for people employed under civil law contracts, including contracts of mandate.
If the company is entitled to additional bonuses or allowances for overtime, night work, holidays, etc., a temporary worker has the same rights to them as an employee employed under an employment contract.
A temporary worker is entitled to annual leave pay, which is also calculated on the basis of the salary received in a given position.
Temporary Employment Act – work only in selected positions
Temporary work cannot be used in every position and in all circumstances. The Temporary Employment Act also regulates this issue. A temporary worker may be employed:
- seasonal and ad hoc work that is not permanent employment. That is why this solution is so widely used in tourism, agriculture, construction or gastronomy,
- for work that the employees currently employed by the company cannot perform on time. Therefore, the services of an agency can only be used when the demand for labor increases, and there is a shortage of jobs and processing capacity,
- to work as a substitute – when an employee previously performing specific duties is absent. The reason for this absence is irrelevant in the eyes of the law.
Step by step – what does the process of recruiting temporary employees look like?
The whole process should start with determining the current employment needs. Their identification will allow for a better assessment of the situation. It is also important to determine the duties and tasks that will be assigned to the temporary worker.
The second step is usually market research to find a temporary employment agency with extensive experience in the industry and a good reputation. Also remember to compare offers, commissions, and availability of employees. Also, compare the quality of the services provided before the final signing of the contract.
At a later stage, the temporary employment agency is provided with the exact requirements regarding the skills and qualifications to be possessed by the hired person. At this stage, it is also worth preparing a training program that will quickly introduce new employees to work in your company.
It is the temporary employment agency that recruits using the previously provided criteria, and then selects candidates and conducts preliminary interviews. The employer can participate in this process by selecting candidates according to their preferences. After the selection, it is the agency that finalizes the employment.
The next stages are hiring and presenting a contract and introducing the employee to the company, i.e. familiarizing them with the team, health and safety rules, tasks and procedures in the company.
Monitoring and evaluating the employee is also important throughout the process. Efficiency and quality of the tasks provided is key here. Especially when the cooperation ends. Then you can assess the effects and summarize the cooperation as a whole.
At the very end, you can only draw conclusions that may prove important if you decide to hire a temporary worker again in the future. Identifying strengths and areas for improvement can bear fruit in the future.
Temporary Employment Act – this form of employment is not always possible
The Temporary Work Act also contains provisions specifying the conditions under which work cannot be resumed. One of the situations referred to in the regulations is particularly dangerous work. Particularly dangerous work, on the other hand, is defined by the regulation of the Minister of Labour and Social Policy. This group includes some construction and demolition works, work with the use of hazardous materials, or in some confined spaces.
In addition, a temporary worker cannot replace an employee who is currently participating in a strike. A temporary employee may also not work as a security guard if the performance of his duties requires arming with firearms or certain items intended for incapacitation.
Temporary Employment Act – a form of work that is profitable for the employer
It is no coincidence that a large group of employers commonly use this form of employment. There are industries, such as construction, agriculture, gastronomy, horticulture or tourism, where the need for additional employees exists only during the season. Therefore, it is obviously not profitable for the company to maintain permanent positions in positions that are needed only for a few months a year. The temporary employment agency then helps to immediately find suitable employees, and this form of employment is flexible, so it is very beneficial for the employer.
Employment flexibility
Employment under a temporary employment contract allows you to adapt the recruitment process to the needs of the company. Employers can quickly adjust the number of employees, which often changes very dynamically. Especially during periods of seasonal work, increased production or when demand for the product increases.
Lower recruitment costs
Further savings are related to the reduction of employee recruitment costs. The employer would have to run it from scratch, heavily burdening its own HR department and wasting a lot of time on recruitment. An experienced temporary employment agency has a database of suitably qualified and well-motivated employees. This is not a permanent recruitment, so it is fast.
Low risk when hiring temporary workers
An employment contract means many obligations related to long-term employment. If an employee does not perform their work or does not meet expectations, their employment can be terminated very quickly and another candidate can be hired in their place.
Employee testing
Temporary work gives an opportunity to both the temporary worker and the employer, who has time to assess skills and match the employee to the team. The candidate, on the other hand, has the opportunity to show his best side.
Focus on key issues
Hiring a temporary employee allows you to focus on key issues in the company. Less important tasks go to the hands of a temporary worker, and the more important and demanding ones go to full-time employees, who can fully focus on the task entrusted to them.
HR and payroll services on the part of a qualified agency
Another benefit is the savings resulting from the fact that the temporary worker is de facto employed by an employment agency. For this reason, it is the employment agency that deals with HR and payroll services for its employees and other formalities. The employer only bears the costs related to remuneration and the creation of working conditions.
Temporary work and social security – key information
Temporary work, like other forms of employment, is associated with insurance obligations for both the employer and the temporary worker.
A temporary worker, employed under a temporary employment contract, is obligatorily subject to social insurance, which includes:
- pension insurance,
- disability insurance,
- sickness insurance,
- accident insurance.
These contributions are paid by the temporary employment agency, which is the formal employer.
In the case of employment under a contract of mandate as part of temporary work, sickness insurance is voluntary.
Temporary workers are also subject to compulsory health insurance, which means that they have the right to use medical care financed by the National Health Fund (NFZ).
In the case of civil law contracts, such as a contract of mandate, the insurance obligation depends on whether the person works under other employment contracts. In a situation where the contract of mandate is the only source of income, the employee is subject to full social insurance, including health insurance.
A temporary employment agency, as an employer of record, is responsible for registering a temporary worker with the Social Insurance Institution (ZUS) and paying the appropriate contributions.
Temporary workers are therefore entitled to social security on the same terms as permanent employees.
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