Temporary employment contract – all the necessary information
A temporary employment contract is one of the forms of employment functioning in Polish law. It is a specific type of employment contract, which is regulated in detail by the provisions of the Act on the Employment of Temporary Workers, dating back to 2003, as well as subsequent amendments. In matters not covered by this Act, the rules of temporary work are regulated by the Labour Code, as is the case with other employment contracts. An important distinguishing feature of a temporary employment contract is the fact that there are two employers in it – the employer (employment agency and the user employer – the entrepreneur for whom the employee performs his or her duties.
What exactly is a temporary employment contract and how does it differ from a standard employment contract? What about taxes and contributions for temporary workers? How long does a temporary employment contract last, what are the employee rights and the notice period accompanying the contract? We explain!
What is a temporary employment contract?
Temporary work can be described as a task that we perform for an employer who commissions the implementation of a specific job. Temporary work is seasonal, periodic or ad hoc, so it is not performed by permanent employees.
Such employees are covered by a temporary employment contract. Most often, it is temporary employment agencies that deal with employment on behalf of the company and such recruitment is also different than permanent recruitment. The employment agency then deals with payments, i.e. is responsible for the remuneration of the temporary worker and pays social security contributions.
It is therefore not surprising that hiring temporary workers is an opportunity for many companies to fill vacancies very quickly, which, as the name suggests, appear in the workplace seasonally or on an ad hoc basis, for example due to the season or the current market situation. By starting cooperation with a temporary employment agency, the employer does not have to waste time or money on recruitment, and by choosing cooperation with a trusted partner, he can count on temporary workers who are well prepared for their duties.
This situation also benefits a temporary worker, who wants to be employed, but at the same time has quite flexible deadlines, allowing them to reconcile temporary work with other duties. So it’s a classic win-win situation. The benefit of employing temporary workers is obvious to both parties, which is why it has been decided to legally regulate the issue of temporary work in Poland.
Two decades ago, under a special law, it became another type of employment contract. The main difference is that a temporary worker remains employed by a temporary employment agency with which he signs a contract, and can then be seconded to a specific user employer. The Act provides for certain restrictions related to the employment of a temporary worker, primarily temporary, but it should be remembered that it is an employment contract with all its most important consequences in terms of holidays, benefits, contributions and taxes.
What is the difference between an employment contract and a temporary employment contract?
A temporary employment contract is used to employ temporary workers on the terms consistent with the Labour Code. Its parties are the employee and the temporary employment agency. The contract contains standard elements, such as the parties to the contract, the date it was signed, but at the same time, the document indicates the user’s employer, the duration and responsibilities during the period of work. In this part of the contract, you can find, among other things, the type of work entrusted to the temporary worker, the place of performance of the temporary work, the remuneration along with the date of its payment, as well as the amount of work performed by the temporary worker.
A temporary employment contract is always a fixed-term contract, because due to its nature, temporary work cannot be performed permanently. A temporary worker may spend a maximum of 18 months within 36 months with a given user employer. If the contract is signed for 18 months and comes to an end, the employment relationship ends and the temporary worker cannot return to the same position for the next 18 months.
The contract protects employees in another very important way – a temporary worker employed in the same position as a full-time employee, requiring the same qualifications, should receive the same remuneration. This applies to both the basic salary and bonuses and overtime. Of course, the salary is also affected by the length of service, but in this matter, temporary workers are also subject to the same salary range. All other terms and conditions of employment must also be the same as those of full-time employees.
A temporary employment contract signed with a temporary employment agency may only apply to certain works – this is one of the most important differences from a regular employment contract. A temporary worker may only perform work:
- seasonal, ad hoc and periodic;
- to perform the duties of an absent employee (regardless of the reason for his absence);
- work that is not possible to be performed by permanent employees (increase in demand for labour).
At the same time, the rules for the employment of temporary workers state, among other things, that it cannot be particularly dangerous work, performed as an employee participating in a strike, nor can it be security work requiring arming with firearms.
Temporary employment contract – contributions and taxes
The terms and conditions of temporary work under this contract, regardless of the temporary employment agency, do not differ from any other employment contract. For this reason, when employing temporary workers, the temporary employment agency as an employer pays full social security contributions for them – pension, disability, health and sickness, accident, Labour Fund and Guaranteed Employee Benefits Fund. As a result, temporary workers at the disposal of the user employer can benefit from full benefits, including sickness benefit. The same applies to medical assistance provided under the National Health Fund.
Employees employed under a temporary employment contract are subject to income tax, in practice paid by the employer, so the payment from the temporary employment agency, as in the case of any other employment contract, is a net salary.
How long can a temporary employment contract last?
Temporary work can only be performed for the period of time specified in the Act. A temporary worker employed by a temporary employment agency is limited to 18 months with one user employer, and a period not exceeding 18 months applies to 36 months. In other words, the rules for employing a temporary worker allow you to spend only a year and a half in a given position within 3 years. A longer period is allowed only in the case of temporary replacement work and amounts to 36 months. The contract concluded with the agency must take this into account. However, it is permissible for the employer to hire an employee under an employment contract without the agency’s intermediation after its completion.
How long can you work as a temporary worker?
The 18-month limit applies to only one user employer. When the termination of the contract comes, or simply when the contract comes to an end, the user employer can bind itself with another temporary worker. On the other hand, the temporary worker can then take advantage of other job offers and bind himself to the new employer on the basis of a contract signed with the temporary employment agency. Everyone has the right to work temporarily for as long as they want, but before the 36 months have elapsed, they must choose another user employer.
Does temporary work count towards the length of service and retirement?
A temporary employment agency provides a temporary worker with exactly the same benefits for a period of time specified in the contract as in the case of an employment contract. The difference is that the payment of remuneration is on the employer’s side, and the user employer does not deal with it. On the basis of the contract, all the above-mentioned contributions are paid all the time, so an employee employed by the agency increases his or her length of service necessary for future retirement. The rights of a temporary agency worker are full, regardless of the fact that he performs his duties for the user employer and that it is seasonal work. Every temporary worker can be confident about their future retirement.
Rights and obligations of a temporary agency worker
Persons employed under a civil law contract for a temporary period have specific rights and obligations that differ from those employed under a standard employment contract.
An employee has the right to remuneration, equal treatment, the right to leave, the right to safe working conditions, the right to a notice period, or the right to protection against discrimination and mobbing at work.
The duties of a temporary worker include performing work in accordance with the contract, complying with work regulations and health and safety rules, keeping trade secrets, timely informing about absences and reporting violations of rights.
Leave in the case of a temporary employment contract
In addition, during the performance of temporary work, employees employed in a temporary employment agency are provided with the possibility of using full holiday benefits (full-time leave).
Every employer who decides to hire a temporary worker must be aware of this at the time the contract was concluded. The employer’s obligations apply not only to remuneration and occupational health, but also to annual leave. From the date of conclusion of the contract, the employee is entitled to 2 days for each month of service. By using it, the employee is entitled to full remuneration. When the duration of employment does not exceed 6 months, the agency and the user employer determine whether the employee can use all the leave during the duration of the temporary work. If it is longer than 6 months, it is the employee who agrees on the time of using the leave. In addition, there is the possibility of taking holiday leave on demand, which is provided for in the rules for directing temporary workers.
Temporary work and pregnancy and maternity leave
A temporary employment contract gives employees, and more specifically female employees, another very important privilege. If its duration is at least two months, the employed person can benefit from maternity benefits. The contract with the temporary worker is automatically extended until the day of delivery, if it were to be automatically terminated after the end of the 3rd month of pregnancy. As a result, a person employed by the agency on the basis of a temporary employment contract then gains the right to benefit from maternity benefit.
Notice period for temporary employment contracts
When it comes to temporary work, an employment contract is a fixed-term contract and comes to an end after the end of the duration of employment with a specific user employer. At the same time, both parties may decide to terminate it early, provided that the employee and the agency choose such a provision.
The notice period depends on the duration of the contract and amounts to:
- a 3-day notice period if the contract was concluded for a period not exceeding two weeks;
- a one-week notice period when the contract is longer.
Is a temporary employment contract profitable? Cost-benefit analysis
Benefits for employees
The issue of the benefits of employment as a temporary worker must be looked at holistically. From the employee’s point of view, there are several important advantages of such a solution. The first is flexibility. Temporary work is good for students, people on maternity leave or people who want to combine work with other responsibilities.
A very important aspect is also quick entry into the labor market. A temporary worker is seconded to work that needs immediate employment, so he does not have to worry about a long and arduous search for a job.
Temporary work is also an opportunity to gain professional experience in various industries. Using the services of a temporary employment agency will allow you to expand your experience in your CV and increase your value on the labor market.
Benefits for employers
And what about the employer? They can also count on very high flexibility, which results from the ability to adjust the number of employees to the current needs in the company. In a critical situation, this is the best solution.
Hiring temporary workers is also an opportunity to reduce the costs associated with maintaining permanent employees. A fixed-term contract exempts the employer from incurring the costs of social benefits, remuneration for the holiday period, or severance pay for the employee.
Temporary employment gives a company the opportunity to test employees. In this way, without much risk, you can assess competence, performance and the ability to work in a team. As a result, making decisions about permanent employment is much simpler and more certain.
A temporary employment contract, which is a specific form of employment, offers flexible solutions for both employees and employers. For employees, it is an opportunity to quickly gain employment, develop professional experience and reconcile work with other duties. For employers, in turn, this means flexibility of employment, along with adjusting the number of employees to the current needs of the company without long-term commitments.
Doświadczony analityk rynku pracy, specjalizuje się w badaniach nad trendami zatrudnienia i zmianami w strukturze zawodowej. Jego artykuły, publikowane w renomowanych czasopismach branżowych, pomagają czytelnikom zrozumieć dynamikę rynku pracy.
