Collective Redundancies in Poland: Thresholds, Consultation, Notification

Collective redundancies in Poland are employment terminations made by an employer for reasons not attributable to employees, where the statutory number of dismissals is reached within a 30-day period. The process is governed primarily by the Act of 13 March 2003 on Special Rules for Terminating Employment Relationships for Reasons Not Attributable to Employees, commonly called the Group Layoffs Act [1].

For international businesses, collective dismissals require more than issuing termination notices. The procedure involves statutory thresholds, consultation with trade unions or employee representatives, notification of the competent labour office, severance payments, and potential re-employment obligations. A procedural error may delay restructuring, create employment claims, and expose the business to reputational and operational risk.

 

When do collective redundancies Poland rules apply?

The Group Layoffs Act applies to employers employing at least 20 employees. The dismissals must be caused by reasons not attributable to the employees, such as an economic downturn, restructuring, closure of a business unit, automation, loss of a significant customer, or a change in the company’s operating model.

The statutory thresholds for collective redundancies in Poland depend on the employer’s total workforce:

• at least 10 employees, where the employer has fewer than 100 employees;
• at least 10% of employees, where the employer has between 100 and 299 employees;
• at least 30 employees, where the employer has 300 or more employees.

These thresholds apply where dismissals occur within a period not exceeding 30 days. The number includes employees dismissed by notice given by the employer. It can also include terminations by mutual agreement, provided that the agreements are initiated by the employer and concern at least five employees [1].

Three scope exceptions requiring separate assessment

Three situations commonly fall outside the collective redundancy mechanism, although the facts must always be reviewed carefully:

• an employer has fewer than 20 employees;
• the termination is based on reasons attributable to the employee, for example serious misconduct or documented underperformance;
• an employee resigns independently, without an employer-initiated proposal for termination by mutual agreement.

The expiry of a fixed-term contract may also require separate analysis. A contract that expires on its agreed date is not automatically a collective dismissal. However, a fixed-term contract terminated early by the employer as part of restructuring can fall within the statutory regime.

 

Consultation with trade unions redundancy Poland

Before taking final decisions, the employer must begin consultation with company trade union organisations. Under Article 2 of the Group Layoffs Act, the employer must provide written information covering, in particular:

• the reasons for the planned redundancies;
• the number of employees and occupational groups affected;
• the total number of employees and occupational groups employed;
• the proposed selection criteria;
• the order and timing of dismissals;
• the proposed method of calculating statutory severance and other employment-related benefits.

The employer must also notify the relevant county labour office, known as the powiatowy urząd pracy, of the planned collective redundancy procedure. A copy of the information provided to trade unions should be supplied to the labour office, together with information on the consultation process and the employer’s proposals regarding employee matters [1].

The purpose of consultation is not merely formal. Trade unions may propose measures limiting redundancies, changing selection criteria, adjusting the timetable, or improving support for affected employees. The employer should be able to demonstrate that those proposals were genuinely considered.

 

Agreement with employee representatives redundancy

Where trade unions operate at the employer, the parties should seek to conclude a collective redundancy agreement within 20 days from the employer’s notification to the trade unions. The agreement should specify the rules for dealing with affected employees, including selection principles, dates, severance arrangements and possible support measures.

If no agreement is reached within that period, the employer may issue internal redundancy regulations after considering the trade unions’ positions. Where no trade union organisation operates, the employer must consult employee representatives selected in the procedure adopted at the workplace [1].

Selection criteria deserve particular attention. Criteria such as qualifications, professional experience, ability to perform multiple roles, disciplinary record, attendance and the needs of the reorganised business may be lawful. They should be objective, consistently applied and capable of evidential support. Criteria that indirectly disadvantage protected groups may lead to discrimination claims under the Labour Code [2].

 

How to notify labour office collective dismissal

After concluding the agreement or issuing redundancy regulations, the employer must provide the labour office with a further written notification. It should include the arrangements reached with trade unions or employee representatives and information on the number of employees affected, the reasons for dismissal, occupational groups and the timing of terminations.

As a rule, employment relationships cannot end before 30 days have passed from the notification delivered to the labour office. This timing rule is set out in Article 6 of the Group Layoffs Act. It should be built into the transaction or restructuring schedule at an early stage, especially where a plant closure, outsourcing project or business transfer is planned.

Individual termination notices must also comply with the Labour Code. In particular, notices should state a real and specific reason where required, observe statutory notice periods and respect special protection rules applicable to certain employees, including pregnant employees, employees on parental leave and some trade union representatives [2].

 

Statutory severance collective redundancy Poland

An employee dismissed under the Group Layoffs Act is generally entitled to statutory severance. Under Article 8, the amount depends on the employee’s length of service with the employer:

• one month’s remuneration for employment shorter than two years;
• two months’ remuneration for employment from two to eight years;
• three months’ remuneration for employment exceeding eight years.

Statutory severance is capped at 15 times the statutory minimum remuneration for work applicable on the date employment ends. Contractual severance, settlement payments or benefits under internal policies may be payable in addition to the statutory amount, depending on the wording of the relevant documents.

 

Re-employment claim after group layoff

The Group Layoffs Act creates a priority re-employment mechanism. A former employee who wishes to return must notify the employer of that intention within one year after the employment relationship ends. If the employer hires workers in the same occupational group within 15 months after the termination, it must re-employ the eligible former employee, subject to the statutory conditions [1].

This is not an automatic right to a newly created position regardless of job requirements. Nevertheless, recruitment activity after a group layoff should be documented carefully. Hiring new personnel into substantially similar roles without considering eligible former employees can create a re-employment claim and complicate the employer’s litigation position.

 

This is informational material, not legal advice. For a case-specific review of a restructuring plan, dismissal documentation and consultation timetable, contact us at Lawyersinpoland.com by Kopeć & Zaborowski.

 

FAQ – Collective Redundancies in Poland

What is the group layoffs act Poland thresholds 10 30 rule?

The threshold is 10 employees for employers with fewer than 100 employees, 10% of employees for employers with 100 to 299 employees, and 30 employees for employers with at least 300 employees. The relevant period is 30 days.

Do mutual termination agreements count towards collective redundancies?

They can count if they are initiated by the employer and concern at least five employees. Voluntary resignations initiated by employees do not count.

Must an employer consult trade unions before collective dismissal?

Yes. The employer must consult company trade unions where they operate. If no trade union operates, consultation must take place with employee representatives.

When must the labour office be notified?

The labour office must receive information at the start of the consultation process and a further notification after the agreement is concluded or redundancy regulations are issued.

Can employees be dismissed immediately after notification to the labour office?

Generally, no. Employment relationships cannot end before 30 days have passed from the notification to the competent labour office.

What severance is payable in a collective redundancy?

Statutory severance ranges from one to three months’ remuneration, depending on the employee’s length of service. The amount is subject to a statutory cap of 15 times the statutory minimum remuneration for work.

Do dismissed employees have a right to be hired again?

Eligible former employees may have priority re-employment rights if they notify the employer within one year and the employer recruits in the same occupational group within 15 months after termination.

 

Bibliography

[1] Act of 13 March 2003 on Special Rules for Terminating Employment Relationships for Reasons Not Attributable to Employees, consolidated text: Journal of Laws of 2024, as amended.

[2] Act of 26 June 1974 – Labour Code, consolidated text published in the Journal of Laws, as amended.

[3] Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to collective redundancies.