Dispute Resolution Under Business Law in Poland: Fundamentals of Polish Business and Commercial Law

Running a business in Poland? Navigating the complexities of commercial disputes can feel like steering a ship through stormy waters. Whether you’re a seasoned entrepreneur, a multinational company entering the Polish market, or a startup testing your first idea, understanding your legal dispute resolution options is absolutely essential. Let’s break down how litigation, arbitration, and mediation work under the umbrella of business law in Poland—and how to choose the right path when conflicts arise.

Legal Framework of Business Dispute Resolution in Poland

When we talk about business law in Poland, we’re diving into a structured yet adaptable system. The Polish legal landscape offers multiple avenues to settle commercial disagreements. From courtroom showdowns to behind-closed-doors mediations, the mechanisms are there—it’s all about choosing the right one.

At the heart of it all lies the Civil Procedure Code, which governs litigation, while separate regulations cover arbitration and mediation. These mechanisms provide entrepreneurs and companies with the flexibility to resolve disputes efficiently without stalling their core business activities.

Business Litigation in Poland: When Courtroom Is the Battleground

Let’s start with the traditional route: litigation. When all else fails, sometimes the courtroom is where things must be settled. In Poland, business litigation follows formal, codified rules that ensure transparency and legal certainty.

Here’s what you should know:

• Business disputes are typically handled by civil courts (district or regional courts depending on the value of the claim).
• Commercial cases are judged by specialists who understand the nuances of commercial law and the mechanics of company operations.
• Pre-trial procedures like formal demands and preliminary hearings are mandatory in some cases.
• Decisions can be appealed, giving parties a second shot if something seems off.

Litigation has its place. It’s public, structured, and powerful. But it also comes with baggage—high costs, time-consuming procedures, and a lack of flexibility. Still, for some companies, particularly in high-stakes or precedent-setting cases, it’s the best choice.

Mediation in Poland: A Confidential Way to Resolve Commercial Conflicts

If you’re not into the whole courtroom drama, mediation might be your style. Think of it as a business-savvy conversation guided by a neutral third party. In Poland, mediation is gaining serious ground—especially in disputes between commercial players.

Why choose mediation?

• It’s voluntary and confidential.
• Faster than litigation and often far less expensive.
• You maintain control over the outcome—no surprises.
• It preserves relationships (a key factor for long-term business in Poland).

Mediation is available both before filing a lawsuit and during court proceedings. In fact, courts often encourage parties to try mediation first. And guess what? If successful, the settlement agreement can be made enforceable like a court judgment. That’s a win-win.

Arbitration in Poland: A Middle Ground with Global Appeal

Somewhere between the formality of court and the flexibility of mediation lies arbitration. It’s especially popular in commercial law where international parties are involved. Poland is no stranger to arbitration—home to respected institutions like the Court of Arbitration at the Polish Chamber of Commerce.

Here’s the deal with arbitration:

• It’s private, faster than court, and arbitrators are typically experts in the relevant field.
• You choose the rules, the venue, the language—it’s tailored to the dispute.
• Awards are final and enforceable under the New York Convention in over 160 countries.

Many commercial companies include arbitration clauses in their contracts, especially in cross-border deals. It’s a flexible, global-ready solution that gives businesses peace of mind.

An Outline of Polish Commercial Law for Business Owners

Understanding the wider outline of Polish commercial law helps you put these dispute resolution options in context. The system is built to balance legal certainty with modern business needs. Contracts, corporate governance, and dispute resolution all fall under this umbrella.

Polish company law recognizes several forms of doing business, including:

1. Sole proprietorships
2. Partnerships (civil and commercial)
3. Limited liability companies (sp. z o.o.)
4. Joint-stock companies (S.A.)

Each form has different rules regarding dispute resolution, liability, and representation in legal proceedings. For example, in sp. z o.o. companies, board members are often authorized to represent the firm in court and arbitration.

Polish Legal Culture: Why Local Insight Matters

The truth is, knowing the law isn’t enough—you need to know the terrain. Legal professionals in Poland understand not just the regulations but how things work in practice. From procedural quirks to local expectations, these insights can make or break your strategy.

If you’re doing business in Poland, don’t underestimate the value of local counsel. They can advise you on practical aspects like:

• Choosing the right dispute resolution clause for your contracts
• Deciding whether to mediate, litigate, or arbitrate based on the case specifics
• Navigating Polish procedural law and deadlines

At Lawyers in Poland, we help foreign and local companies make informed decisions and avoid costly mistakes. Trust us, there’s no substitute for boots-on-the-ground legal expertise.

Commercial Companies Law and the Role of Business Law Firms

Commercial disputes often arise within or between commercial companies. That’s where the commercial companies law kicks in, covering everything from shareholder rights to board conflicts and M&A fallout.

And when things get messy? That’s when a business law firm becomes your best ally. Whether it’s negotiating settlements, drafting enforceable arbitration clauses, or defending your interests in court, experienced attorneys can guide your next move with clarity and confidence.

The best firms don’t just litigate—they partner with clients to build preventive strategies and minimize risk long before a claim lands on your desk.

Information You Need to Resolve Disputes Effectively

Here’s the kind of information every company should have ready when a dispute looms:

• Contractual terms, especially jurisdiction and arbitration clauses
• Communication records (emails, messages, memos)
• Internal policies relevant to the dispute
• Clear evidence of performance (invoices, payments, delivery notes)

Pro tip? Always assume that a dispute may escalate. Keep documentation tight, and never sign a contract without reviewing its dispute resolution section. You’d be shocked how many seasoned entrepreneurs skip this step—and pay the price later.

Doing Business in Poland? Choose the Right Legal Strategy

Bottom line: whether you’re launching a private venture or expanding a multinational, conflicts are inevitable. But you don’t have to dread them. With the right approach, they become manageable—even beneficial if handled with finesse.

Think strategically. Choose the resolution method that fits your business goals, timeline, and budget. And above all—partner with a legal team that knows business in Poland inside and out.

At Lawyers in Poland, we don’t just solve problems—we prevent them. Let us be your trusted guide through the fundamentals of Polish business law and beyond. Ready to talk?

Polish Labour Law in 2025 – A Practical Guide to Changes in Employment Law in Poland

Running a business in Poland? Or maybe you’re thinking of hiring your first employee in the Polish market? Either way, buckle up — the labour law in Poland is more nuanced than ever in 2025. From recent reforms to long-standing legal obligations, understanding the landscape of employment law is not just smart business — it’s a must to stay compliant and avoid costly mistakes. In this no-nonsense guide, we’ll walk you through everything you need to know about the legal rules of employment, how to hire and fire legally, and what’s new under the sun of labour law in Poland.

Your Legal Guide to Employment in Poland: What’s New in 2025?

The year 2025 brought notable changes in labour law in Poland. If you’re an employer — or planning to become one — you need to keep tabs on new legal requirements related to remote work, transparent working conditions, and stricter reporting duties. These regulations stem partly from EU directives and partly from Poland’s internal push for modernisation.

So, what’s changed? Here’s a quick snapshot:

• Mandatory work-from-home policies must now be backed by a written agreement.
• Employment contracts must include extended information clauses — including place, time and mode of work.
• Employers are required to justify dismissals even in fixed-term contracts.
• New rules for the use of civil law contracts (umowa zlecenia and B2B deals).

Understanding the Legal Basics of Employment in Poland

In order to understand labour law in Poland, it helps to start with the basics. Most employment relationships fall under the Labour Code (Kodeks pracy), which lays out the framework for the employment of individuals. In addition, there are other legal sources such as EU directives, anti-discrimination laws, and collective bargaining agreements. But if you’re dealing with day-to-day HR issues, the Code is your bread and butter.

The employment relationship must always be documented in writing. While it may be tempting to shake hands and call it a day — don’t! Polish authorities are extremely strict about written contracts, especially during audits. The absence of a formal contract may be interpreted as an attempt to evade social security or tax duties. And yes — that’s asking for trouble.

Employment Contracts: Must-Haves and Legal Must-Knows

When drafting an employment agreement, make sure it includes all the required clauses. As of 2025, this means more than just the job title and salary. According to the most recent changes in labour law in Poland, employers must provide the following details:

1. The type of contract: indefinite, fixed-term, or probationary.
2. Working hours and pattern (e.g., remote, hybrid, stationary).
3. Place of work — yes, even for remote employees!
4. Job description and tasks.
5. Wage components and payment schedule.
6. Notice periods and grounds for termination.

For international companies operating in Poland, it’s also wise to include a governing law clause and language version — Polish law requires a Polish-language version for local employees.

Types of Work Contracts: Not Just One Size Fits All

In employment law in Poland, there are three main contract types regulated under the Labour Code. Each serves a specific function and comes with its own rules for termination, social insurance and tax treatment.

• Contract for indefinite period – The gold standard. Harder to terminate but offers full rights and job security.
• Contract for a definite period – Maximum 33 months and limited renewals. Requires written justification for early termination.
• Probationary contract – Can last up to 3 months. Great for testing fit, but must also follow formal procedures.

And what about freelancers or contractors? That’s where civil law contracts come in. These fall outside the Labour Code and are more flexible — but also riskier if misclassified. Employers must not use them to circumvent employee protections. The Polish Social Insurance Institution (ZUS) is cracking down on such misuse.

Hiring Employees in Poland: What You Must Know

Whether you’re a startup or a seasoned multinational, the hiring process in Poland involves several non-negotiables:

• Medical examination and workplace safety training must be completed before work begins.
• The contract must be signed no later than the first day of work.
• Employees must be registered with ZUS within 7 days of starting work.

Failure to meet these requirements can result in fines — or worse, criminal liability. Plus, if your new hire is not an EU citizen, you’ll need to verify work permits or residence documents. Don’t cut corners — it’s just not worth it.

Firing Employees: Rules for Termination of Employment

Let’s be real: sometimes things don’t work out. But in labour law in Poland, termination isn’t a free-for-all. Whether you’re ending a contract due to restructuring, underperformance, or disciplinary reasons, the process must follow legal procedure.

Types of termination:

• By mutual agreement – the safest and smoothest path.
• With notice – must be justified, especially for fixed-term contracts.
• Without notice – only for serious misconduct or breach of obligations.

Also, remember that protected categories of employees (e.g. pregnant women, union members, or employees on leave) enjoy special legal safeguards. Fire them improperly, and you’re looking at court battles and big compensation.

Polish Labour Code and Employee Rights

The Labour Code is packed with guarantees that protect the work of individuals. Employees are entitled to:

• Paid annual leave (min. 20–26 days depending on seniority).
• Paid sick leave and maternity/paternity leave.
• Minimum wage — currently updated annually.
• Protection against discrimination in the workplace.
• Workplace safety and access to training.

Make no mistake — in the workplace, compliance is king. Labour inspections are becoming more frequent, and workers are increasingly aware of their rights. Better safe than sorry, right?

Key Legal Obligations for Employers in Poland

Every employer has a set of non-negotiable obligations under labour law in Poland. These include:

1. Timely payment of wages and social contributions.
2. Maintaining personnel files and payroll records.
3. Ensuring health and safety in the workplace.
4. Respecting limits on working time and rest periods.
5. Upholding anti-discrimination and equal treatment laws.

Violating these obligations doesn’t just hurt your reputation — it can trigger fines, inspections, or even lawsuits. And that’s a rabbit hole no one wants to fall into.

Remote Work and the New Normal in Polish Labour Law

Post-pandemic life has made remote work the new normal, and 2025 Polish labour law now reflects this shift. Teleworking is no longer a grey zone — it’s codified. Employers must now provide equipment or reimburse costs for remote work. They must also ensure data security and clarify communication channels.

Employees working remotely still enjoy the same rights as office staff — including working time limits, rest breaks, and the right to disconnect. Think of it as “same game, different pitch.”

Final Thoughts: Why Compliance is More Than Just a Checkbox

Understanding labour law in Poland in 2025 isn’t just about reading legalese. It’s about respecting your people, running a professional operation, and keeping your business out of hot water. Whether you’re drafting an employment contract, hiring staff, or handling a termination — every move matters.

Need help navigating these waters? At Lawyers in Poland, we guide employers through every twist and turn of employment law — offering practical, tailored advice with a human touch. Let us be your legal compass in the complex world of labour law in Poland.