20.01.2023

Legal Alert: Remote working

On January 16, 2023, an act amending the Labor Code, which introduces remote working into the Code, was referred to the President of Poland for signature. Regulations on remote work are scheduled to take effect on March 1, 2023.


Remote working


As defined in the Act, remote working will be work performed wholly or partially at a place designated by the employee and agreed with the employer each time, including at the employee’s home address, in particular using means of direct communication at a distance.

The parties will agree on the performance of remote work either at the time of entering an employment contract or during the course of employment.

(Article 6718 of Labor Code)

Rules for performing remote work

The act introduces the obligation to determine the rules for performing remote work in:

  • the agreement between the employer and the company trade union organization(s),
  • the regulations established by the employer – if no agreement is reached with the company’s trade union organization, and in case there is no such organization at the workplace (then the regulations would be established after consultation with employee representatives).

In the event that the employer does have the agreement or regulations for remote work in effect – it can be implemented at the request of an interested employee.

The agreement or regulations will specify, in particular:

  • the group or groups of employees who may be subject to the remote working system;
  • the rules for covering the costs by the employer;
  • the rules for determining the cash equivalent or lump sum;
  • the rules of communication between the employer and the remote worker, including how the remote worker confirms his or her presence at the workplace;
  • the rules for controlling the performance of an employee performing remote work;
  • the rules of control with respect to occupational health and safety;
  • the rules for monitoring compliance with information security and protection requirements, including procedures for the protection of personal data;
  • the rules for installing, inventorying, maintaining, updating software and servicing the work tools entrusted to the employee, including technical equipment.

(Article 6720 of Labor Code)

Refusal of remote work

In principle, the employer will have to agree to a request for remote work in the case of the following:

  • a pregnant employee,
  • an employee raising a child up to the age of 4,
  • an employee caring for another member of the immediate family or another person in the same household with a disability certificate or a certificate of significant disability,
  • an employee being a parent of a child with a certificate of a complicated pregnancy and in situations of obstetric failures,
  • an employee being a parent of a child with a disability certificate, or a moderate or severe disability certificate as defined in the regulations on vocational and social rehabilitation and the employment of disabled persons (even after the child turns 18),
  • an employee being a parent of a child with an opinion on the need for early support of child development, a certificate on the need for special education or a certificate on the need for rehabilitation and education classes (even after the child has reached the age of 18).

Such a request may be denied only if it is not possible to perform work remotely due to the organization of work or the type of work performed by the employee.

The refusal will have to be motivated on paper or electronically within 7 working days of the employee’s request.

(Article 6719 of Labor Code)

Remote working on demand

Each employee gains the right to 24 days of remote work per calendar year.

(Article 6733 of Labor Code)

Employer’s obligations towards an employee performing remote work. Compensation. Lump sum.

The amendment to the Labor Code imposes a number of obligations on the employer towards an employee who performs remote work. The employer will be obliged to:

  • provide the employee performing remote work with work materials and tools;
  • provide installation, service, maintenance of work tools, including technical equipment, necessary for the performance of remote work or cover the necessary costs thereof;
  • cover the cost of electricity and telecommunications services;
  • cover other costs directly related to the performance of remote work;
  • provide the employee with training and technical assistance necessary to perform remote work;
  • determine the amount of cash compensation for the use of, e.g., the employee’s private laptop and other materials not provided by the employer.

When determining the amount of the compensation or lump sum, the employer will have to take into account: the standards for wear of materials and work tools, including technical equipment, the standards for consumption of electricity, the cost of telecommunications services. It should be emphasized that the compensation will not constitute income for the employee.

(Articles 6724 – 6725 of Labor Code)

Application

The regulations on remote work will also apply to employment relationships established on a basis other than an employment contract.

(Article 6734 of Labor Code)


Work-life Balance


On January 12, 2023, an Act to amend the Labor Code and certain other laws, implementing the provisions of the EU work-life balance directive (more precisely, Directive 2019/1158 of the European Parliament and the Council of the European Union of June 20, 2019), was referred to the Sejm for the first reading.

The key changes affect six areas of the Labor Code; for employees, this means greater flexibility in the hours and manner of work, as well as salary modifications during parental leave.

  1. Protection of employees

The Act provides for the protection of employees
from any unfavorable treatment by the employer or negative consequences due to the employee’s exercise of his or her rights.

(Article 1, item 2 of the draft act)

A ban is to be established on preparing to dismiss employees during pregnancy and during maternity leave, paternity leave, parental leave, as well
as due to the request for flexible work arrangements until the day of termination of work under flexible
work arrangements.

(Article 1, item 21 of the draft act)


  1. Carer’s leave – a new type of leave

The employee will be entitled to a carer’s leave
of 5 days per calendar year. He or she will be able
to use it to provide personal care or support
to a relative (e.g., son, daughter, mother, father, spouse) or a person in the same household who requires substantial care or substantial support for serious medical reasons. Leave shall be granted on days that are working days for the employee, according to the employee’s work schedule.

(Article 1, item 20 of the draft act)

  1. Parental leave

The draft provides for an extension of parental leave by 9 weeks, i.e., from 32 weeks to 41 weeks – in the case of the birth of one child, and from 34 weeks to 43 weeks – in the case of multiple births. However, this additional 9 weeks of parental leave will not be transferable to the other parent.

(Article 1, item 25 of the draft act)

The amount of maternity allowance for the period of parental leave will also be changed as follows:

  • Maternity allowance for the entire period of parental leave will be 70% of the allowance base,
  • If the employee applies for a parental leave no later than 21 days after childbirth, the amount of maternity allowance for the period of maternity and parental leave will be 81.5% of the allowance base,
  • In any case, the employee will be entitled to an allowance of 70% of the allowance base for the period of the non-transferable 9-week portion of parental leave.

(Article 11, item 4 of the draft act)

  1. Exemption from work

An exemption from work due to force majeure will also be introduced into the Labor Code. An employee will be entitled to time off from work, either 2 days or 16 hours per calendar year, due to force majeure, for urgent family matters caused by illness or accident, if the employee’s immediate presence is necessary. For the time off, the employee will retain the right to 50% of his salary.

(Article 1, item 19 of the draft act)

  1. Paternity leave

Another change is the reduction of paternity leave to 12 months from the date of the child’s birth. Currently, an employee can take this leave within 24 months from the date of birth of the child.

(Article 1, item 31 of the draft act)

  1. Terms of employment upon return

The employer will be obliged to allow the employee, at the end of maternity leave, leave on terms of maternity leave, parental leave, paternity leave, child care leave, to work in his or her current position or, if this is not possible, in a position equivalent to the one occupied before the start of the leave on terms and conditions no less favorable than those that would have applied if the employee had not taken the leave.

(Article 1, item 36 of the draft act)

  1. Flexible work arrangements

An employee raising a child up to the age of 8, may submit a request, on paper or electronically, for flexible work arrangements to be applied to him or her no less than 21 days before the planned start of the use of flexible work arrangements.

The lawmakers intend to implement this by allowing employees to apply for flexible work arrangements involving the use of:

  • interrupted working time system
  • reduced working week system
  • weekend working system
  • variable working hours
  • flexible work schedule
  • reduced working time.

(Article 1, item 40 of the draft act)


Contact

Please contact our experts should you have any questions regarding the amendments to the Labor Code.

Grzegorz Gajda, LL.M.
Partner | Attorney-at-law
grzegorz.gajda@bakertilly.pl 

Kamil Łamiński, LL.M.
Counsel | Attorney-at-law
kamil.laminski@bakertilly.pl

Klaudia Ochotna
Junior Associate
klaudia.ochotna@bakertilly.pl


Download a PDF version:

PL version  EN version

16.01.2023

Baker Tilly Legal Poland advised LENSO on the ZEISS transaction

23.12.2022

The Sejm passed a law on family foundations

On December 14, 2022, the Sejm passed a law on family foundations, thus taking into account the demands made by family businesses for the introduction into the Polish legal order of a solution to facilitate succession that would allow reconciling business needs with the private interests of the owners.

The Act has now been referred to the Senate.

Present state

In the current state of the law, family business owners have limited options for transferring the ownership of their business. In practice, succession comes down to the use of the institution of donation or transfer as an inheritance of the enterprise to selected persons. Thus, succession planning is essentially limited to a single generation. Family business owners, on the other hand, have no say in the future of the business and the wealth accumulated from it. A slightly less frequent solution to ensure succession is the use of a holding. However, creating such complex structures entails considerable costs. Moreover, it does not guarantee that the family nature of the business will be fully preserved.

Why were family foundations introduced?

The idea of a family foundation is based on the premise that business and family are formally separated from each other, as family assets become the property of the family foundation.

It acts as a family treasury. It is meant to provide financial resources for the family, while at the same time pursuing the founder’s vision and nurturing the values adopted by the founder in the business. The family foundation is thus a means to an end – for the business to operate for generations and for the financial needs of the beneficiaries to be secured.

The use of a family foundation allows for minimising the risk of unsuccessful succession and guarantees the continuation of the business. The transfer of assets to the family foundation is intended to protect them from being divided and to enable them to be multiplied, thus allowing them to be used to the benefit of persons designated by the founder to cover their living expenses.

How to set up a family foundation?

A family foundation would be established during the founder’s lifetime (through an appropriate declaration in the articles of association) or in a will (after the founder’s demise).

The foundation will obtain legal identity when it is entered into the Polish National Court Register (KRS). Once a family foundation is established, the registration with the KRS is to be done by the founder, and in the case of setting up a family foundation in a will, by the board. A foundation will be able to provide gratuitous services to the beneficiaries specified by the founder. However, a foundation will only be able to conduct business to a limited extent, becoming a “passive investor”.

Only an individual with full legal capacity can be the founder of a family foundation.

Setting up a family foundation in five steps

The process of setting up a family foundation can be described in five steps:

  1. Submission by the founder of a declaration on the establishment of a family foundation before a notary public in either the articles of association or the will.
  2. Drawing up the Articles of Association containing the rules of operation of the family foundation.
  3. Transferring assets to the founding capital.
  4. Establishing family foundation bodies.
  5. Registering the family foundation in KRS.

The role of the founder

A family foundation is to be established by more than one founder, as long as it is established during their lifetime. If a family foundation is established in a will, there can be only one founder.

The rights and obligations of the founder will be non-transferable. However, the founder’s role and influence on the family foundation will depend on his individual decisions and will.

If there are more than one founder, the founder’s rights and obligations will be exercised jointly. However, it will be possible to stipulate in the Foundation’s Articles of Association a different way of exercising rights and obligations, such as entrusting their exercise to one or some of the founders.

Minimum capital of a family foundation

The founder will be obliged to provide the foundation with assets, the value of which should not be less than PLN 100,000 (founding capital). If, in the course of the family foundation’s operation, the value of its assets falls below this amount, profits made in the future should first replenish the capital up to PLN 100,000.

Family foundation bodies

A family foundation, like other legal entities, will operate through its board and may be subject to internal oversight by a supervisory board.

On the other hand, the beneficiaries designated by the founder will form the assembly of beneficiaries, which will meet on certain occasions (e.g. when replenishing a particular body, or approving financial statements). This will ensure that the family has the necessary influence on the most important issues related to the family foundation’s operations for many years to come.

Who can become a beneficiary?

Only the following can be the beneficiaries of a family foundation:

  1. natural persons
  2. public benefit organizations within the meaning of the law on public benefit activity and volunteerism.

Determining the type of benefits to which the beneficiaries are entitled will be the sole and free decision of the founder, included within the foundation’s Articles of Association. It can be assumed that, in principle, these will be either monetary payments or other benefits of a material nature, such as the right to use property. The founder will be able to make changes regarding the list of beneficiaries and the benefits they are entitled to, without restrictions, including time restrictions.

Control of family foundation by beneficiaries

A beneficiary will have the right to obtain information about the activities of the family foundation in person or through a person authorized by them. The beneficiary will be able to review documents, financial statements and accounting books, make copies of them and request explanations from the management board. An exemption from this power will apply only to documents and information whose openness has been reserved by the founder.

Taxation of a family foundation

In principle, the taxation of a family foundation and beneficiaries takes into account the family relationship with the founder and is tax neutral. Establishing a family foundation and transferring assets to it will not be taxed (no tax on civil law transactions (PCC) or CIT in this regard).

The family foundation will pay a CIT of 15% levied only at the time the funds are transferred to the beneficiaries (no possibility of deducting tax-deductible expenses and depreciation).

Beneficiaries who are natural persons, as PIT taxpayers, will be exempt from tax if they are one of the following: the founder and his or her spouse, ascendant, descendant, sibling, stepchild, stepfather or stepmother (immediate family). Others will pay 15% PIT rate.

The beneficiaries that are NGOs will pay CIT according to the existing rules, including being able to take advantage of an existing objective exemption.


Please contact our experts should you have any questions regarding family foundations.

Grzegorz Gajda, LL.M.
Partner | Attorney-at-law

Kamil Łamiński, LL.M.
Counsel | Attorney-at-law

Dawid Walczak
Junior Associate


Download a PDF version:

PL Version  EN Version

28.10.2022

TPA Poland and Baker Tilly TPA among the best advisors for the real estate industry

The 12th edition of the CEE Investment Awards is behind us. On October 27, awards were presented to the region’s top companies for their achievements in commercial real estate. It is a great honor that once again the team of experts from TPA Poland and Baker Tilly TPA has received an honorable mention in the Tax & Financial Advisor category.

 

23.09.2022

EXPO REAL 2022

EXPO REAL is a three-day trade fair aimed at real estate professionals from around the world. This meeting place for decision makers and players in the investment and real estate market from all over the world cannot lack our representatives.

23.09.2022

Eurobuild Awards 2022

The 12th CEE Eurobuild Awards will be held on September 27, 2022. As always, the event is dedicated to representatives of the real estate sector. The Gala will honor outstanding projects, as well as remarkable experts and teams working in the real estate industry. The jury will include nearly 200 experts, including Małgorzata DankowskaKrzysztof Kaczmarek and Wojciech Sztuba, who will select the winners in 31 categories in a secret voting.

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Real Estate guidebook 2022/2023. Accounting Case Studies in the Real Estate sector

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