Employee layoffs in Poland

About

In today’s dynamic business environment, organizations often face challenging decisions, including the need for workforce reductions. Understanding the complexities surrounding employment layoffs is crucial for both employers and employees. At Kopeć & Zaborowski, we specialize in providing comprehensive legal services that navigate the intricacies of employment law in Poland, ensuring that our clients are well-informed and supported throughout the process.

While layoffs may be necessary for business sustainability, they can have significant legal implications. Our firm is dedicated to guiding both employers and employees through this multifaceted landscape, helping to mitigate risks and ensure compliance with Polish labor laws.

As a business owner or HR professional, managing layoffs requires careful planning and execution. Our experienced legal team assists employers on every stage.

We help develop a comprehensive layoff strategy that aligns with your business objectives while minimizing legal risks. This includes identifying criteria for employee selection and ensuring transparency throughout the process.

As Poland has specific regulations governing layoffs, including the need for consultation with employee representatives and adherence to notice periods, we ensure that all legal requirements are met to avoid potential disputes.

Crafting fair severance packages is vital for maintaining a positive employer brand. Our attorneys negotiate and draft severance agreements that protect your interests while providing fair compensation to affected employees.

Finally, in the event of disagreements arising from layoffs, we provide effective dispute resolution strategies, including mediation and representation in labor court if necessary.

In terms of matters related to employee layoffs, Kopeć & Zaborowski Law Firm offers also:

  1. Determination on individual or collective layoffs;
  2. Transfer of undertakings;
  3. Settlements of employees claims, including financial compensation;
  4. Deregistration: notifications to public authorities, storage of employee files.

Our firm has successfully executed numerous high-profile projects in the field of employees layoffs, demonstrating our expertise and commitment to excellence. Some of our key projects include:

  • Group layoffs of over 130 people in a media company – preparation of documents for the entire process and assistance in the dismissal of people in managerial positions – the process was carried out efficiently, without any complications
  • Legal assistance in the group layoff of over 200 people in a pharmaceutical company – assistance in communicating information about layoffs during stationary team meetings, providing employees with information about their possibilities and situation, as well as coordinating the handing over of agreement/termination documents during the same meeting – the process was carried out efficiently and effectively for the client
  • Preparation of documents for the termination of employment contracts with members of the management board of one of the banks after their dismissal from the Management Board and representation of the bank in the subsequent court dispute regarding these solutions – ended with a favorable settlement for the bank
  • In 2024 alone, over 300 documents for the termination of employment contracts were prepared for our clients and approx. 100 consultations on how to terminate a contract with an employee.

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Any questions?

Marta Kopeć

Attorney at law, Managing Partner

+ 48 690 300 257

FAQ

What are the main legal grounds for employee layoffs in Poland?

In Poland, employee layoffs must always comply with strict rules of the Labour Code. Employers cannot simply terminate contracts without a justified ground, especially in the case of indefinite-term contracts. The most common legal grounds for termination include:

  • Individual-related reasons – such as lack of proper qualifications, repeated underperformance, or serious violations of workplace duties.
  • Organizational reasons – for example restructuring, closure of a department, introducing outsourcing, or technological changes.

Economic causes – including financial difficulties, downturn in the market, or reduction of business activity for cost-cutting.
In practice, the employer must ensure that the stated reason is both real and specific, since courts frequently verify whether terminations are not arbitrary.

What types of employment contracts can be terminated?

Polish labor law distinguishes between several employment contract types, and each has its own termination rules:

  • Indefinite-term contracts – the most protective form for employees. They require a concrete, written justification for dismissal, and the employer must provide a proper notice period.
  • Fixed-term contracts – easier to end than indefinite ones, but can only be terminated early if both sides agreed to allow notice in the contract. Justification is not always obligatory, except when the employee is union-protected.

Probationary contracts – used to test employees (maximum 3 months). They allow for quick and flexible termination with shorter notice periods.
It is crucial that employers understand how the contract type impacts the termination procedure to avoid wrongful dismissal claims.

What notice periods apply in Poland?

Notice periods in Poland are strictly defined by the Labour Code and depend mostly on the employee’s length of service with the same employer:

  • 2 weeks if employed for less than 6 months.
  • 1 month if employed for at least 6 months but less than 3 years.

3 months if employed for more than 3 years.
For probationary contracts, notice periods are shorter: 3 working days, 1 week, or 2 weeks, depending on contract length.
Employers must remember that notice periods are binding for both sides, meaning employees may also be required to continue working until the end of notice, unless released earlier by agreement.

Can employees be dismissed without notice?

Yes, so-called disciplinary dismissals may occur, but they are exceptional measures regulated by law. They are allowed in the following situations:

  • Gross violation of employee duties – for example theft, fraud, physical aggression, or a breach of confidentiality.
  • Loss of qualifications or rights – such as a driver losing their license or a doctor losing required certification.

Long-term incapacity to work, when the employee has already exhausted medical leave periods and no reassignment is possible.
Dismissal without notice must always be documented and communicated in writing, and it should be used cautiously since labor courts carefully evaluate whether the employer’s decision was proportionate.

Are there protections against layoffs for certain employees?

Yes, Polish labour law provides strong protections for specific categories of workers, and dismissing them is either very difficult or legally impossible:

  • Pregnant women and new parents on parental leave are heavily protected and cannot be terminated, except in cases of employer bankruptcy or closure.
  • Employees on sick leave have job security during their justified absence due to illness.
  • Trade union representatives and works council members are protected because of their employee representation role.

Workers close to retirement age (four years before statutory pension eligibility) cannot be dismissed without serious cause.
Employers must always check if an employee enjoys protection before deciding on termination, otherwise they risk reinstatement orders and compensation penalties.

How do collective redundancies work in Poland?

Collective redundancies are required when a company dismisses groups of employees within a 30-day period. Specific thresholds apply:

  • At least 10 employees in firms with fewer than 100 staff.
  • At least 10% of the workforce in firms with 100–299 employees.
  • At least 30 employees in firms with 300+ staff.
    In such cases, employers must:
  • Engage in consultations with trade unions or employee representatives, explaining reasons and discussing alternatives.
  • Provide written information to staff and employee representatives about planned dismissals.

Notify the local labor office (Powiatowy Urząd Pracy) about the redundancies.
Failure to follow this process may render the dismissals invalid and is a frequent basis for litigation.

What severance payments are required?

Employees laid off for economic or organizational reasons usually qualify for severance pay under the Act on Group Layoffs. The amount depends on service length:

  • 1 month’s average salary if the employee worked less than 2 years.
  • 2 months’ average salary if employed between 2–8 years.
  • 3 months’ average salary if employed for more than 8 years.
    Severance is capped at 15 times the current national minimum wage, adjusted annually. Employers must remember that severance is separate from other employment benefits such as unused holiday pay, which must also be settled at termination.

What is the procedure for valid termination?

A valid termination must strictly follow a regulated process:

  • The employer must prepare a written termination notice, clearly stating the grounds (for indefinite contracts).
  • The termination must be delivered to the employee in person or by registered post.
  • The document must also inform about the right and procedure to appeal to a labor court.
  • If the employee is a union member, the employer should consult the termination with the union before issuing notice.

Employers should also respect all notice periods and provide final settlements such as pay and unused vacation.
Improper procedure exposes employers to claims for reinstatement or financial compensation.

What remedies can employees seek if they challenge a termination?

If an employee believes their dismissal was unlawful or unfair, they may bring a case to the Labour Court. Potential remedies include:

  • Reinstatement to the previous job, usually granted when termination lacked valid cause.
  • Financial compensation, typically ranging from one to three months’ salary as statutory damages.

Discrimination claims – in cases where layoff decisions violated equality laws or targeted protected categories, courts may award broader damages.
Polish labour courts are generally employee-friendly, which is why employers are advised to prepare dismissals carefully with strong justification to avoid costly disputes.

When is it advisable to consult a law firm before layoffs?

Because Polish termination rules are highly regulated and courts frequently review dismissals, legal advice is often essential. Employers should consult a law firm:

  • At the planning stage of collective redundancies, since mistakes in consultation and notification may invalidate the whole process.
  • Before dismissing protected employees such as pregnant women, union activists, or near-retirees, as the risks are high.
  • When drafting termination letters, to ensure proper language, justification, and compliance with procedure.
  • For international employers with subsidiaries in Poland, to ensure dismissals comply both with Polish law and internal group policies.

Whenever a company expects dissatisfaction, potential reputational harm, or trade union resistance.
Proactive legal consultation reduces risks, saves costs, and often prevents long courtroom disputes.