More and more Polish companies are carrying out contracts and providing services outside the country, which often involves temporarily sending their employees there. This process, known as the posting of workers, is however subject to a number of provisions of Polish law, EU law, and the law of the host country. What are the key obligations of an employer posting a worker abroad, especially within the European Union?
What is posting a worker and who does it concern?
Posting occurs when an employer based in Poland sends their employee to work for a limited period in the territory of another EU/EEA member state or Switzerland, within the framework of services provided by that employer. It is crucial that during the posting, the employee maintains an employment relationship with their Polish employer.
Important distinction: Posting should not be confused with a regular business trip (delegacja). A business trip is occasional, usually short-term, and does not involve continuously providing work in another country as part of the company’s services (e.g., participating in a trade fair, meeting a client, a short conference). Posting involves performing work in another country for a specific, longer period. This distinction is crucial for the applicable regulations, especially concerning employment conditions.
The rules on posting mainly concern sending employees to countries of the European Union, the European Economic Area (EEA), and Switzerland, due to the directives in force there. Posting to countries outside this area is subject to bilateral international agreements and the local law of the country to which the employee is sent.
Key regulations: the posted workers directive
The primary legal act at the EU level regulating posting is Directive 96/71/EC concerning the posting of workers in the framework of the provision of services, along with subsequent amendments (Directive 2014/67/EU – enforcement, and Directive 2018/957/EU – amending).
The main objective of these regulations is to ensure that posted workers receive employment conditions no less favorable than those applicable in the host country, in key areas. This aims to prevent social dumping and ensure fair competition. The revised directive introduced the important principle of “equal pay for equal work at the same place”.
Which Host Country Working Conditions Must Be Ensured?
As a posting employer, you must guarantee the employee at least the host country standards regarding:
- Maximum work periods and minimum rest periods.
- Minimum paid annual leave.
- Remuneration: This is a key and often complex aspect. It’s no longer just about the minimum wage in the host country. A posted worker is entitled to full remuneration (including all mandatory components, e.g., allowances, bonuses) resulting from the laws or universally applicable collective agreements in the host country, the same as a local worker in the same position would receive.
- Health, safety and hygiene at work (OHS).
- Protective measures for pregnant women, women who have recently given birth, and young people.
- Equal treatment between men and women and non-discrimination.
- Conditions of workers’ accommodation (where provided by the employer).
- Allowances or reimbursement of expenditure to cover travel, board and lodging expenses for workers away from home for professional reasons 1 related to the posting.
- 1. www.cnce.it
- www.cnce.it
Important: You must always check the specific regulations and rates applicable in the specific country to which you are posting the worker!
Social security: the A1 certificate
As a rule, a posted worker is subject to the social security system of the country in which they normally work and from which they are posted (i.e., Poland). To avoid double contributions (in Poland and the host country), it is necessary to obtain an A1 Certificate.
- Purpose of the A1 Certificate: It confirms that the employee is subject to the Polish social and health insurance system during the posting period, and contributions are paid in Poland (via ZUS).
- Who Applies and Where: The Employer applies to the Social Insurance Institution (ZUS) in Poland, before the posting period begins.
- Conditions for obtaining A1: ZUS verifies, among other things, whether the employer conducts substantial activities in Poland, whether the employee was directly employed before posting, whether the posting is temporary (usually up to 24 months), and whether the employee is not replacing another posted worker.
Holding a valid A1 certificate is crucial for both the employer and the employee.
Employer’s information and administrative obligations
Posting also involves a number of formal obligations:
- Before Departure (Towards the Employee): You must inform the employee in writing (e.g., in an annex to the contract or a separate agreement) about the conditions of posting, including: the country of work, expected duration, currency of payment, monetary or in-kind benefits related to posting, conditions of return.
- In the Host Country: Administrative obligations vary by country but often include:
- Notification of the posting to the relevant control institutions of the host country (usually via dedicated online portals).
- Appointing a contact person liaising with local authorities, present in the host country.
- Keeping specific documentation at the workplace or in an accessible place in the host country (e.g., employment contracts, timesheets, proof of wage payment, A1 certificate) and making it available upon request by local inspection authorities.
It is crucial to thoroughly check the administrative requirements of the country to which you are posting the employee!
Risks associated with posting and how to prevent them
Failure to comply with posting obligations can lead to:
- High financial penalties imposed by host country inspection bodies (e.g., for non-compliance with remuneration rules, failure to notify posting).
- Disputes with employees regarding terms of employment and remuneration.
- Problems with ZUS concerning the A1 certificate.
- Complications during inspections in the host country.
To prevent risks, it is essential to:
- Thoroughly familiarize yourself with the host country’s regulations.
- Carefully prepare documentation (contracts, annexes, A1).
- Correctly calculate remuneration according to the “equal pay” principle.
- Timely fulfill notification and administrative duties.
- Consider seeking legal support.
How can we help your company with the posting process?
Issues related to the posting of workers are complex and require good knowledge of both Polish and host country regulations. Our law firm offers support in this area:
- We help correctly classify the trip (posting vs. business trip).
- We advise on obligations arising from the directive and host country regulations (minimum employment conditions, remuneration).
- We support the process of obtaining A1 certificates from ZUS.
- We assist in preparing the necessary documentation for the employee (annexes, agreements).
- We advise on administrative obligations in the host country.
- We offer support in case of inspections or disputes.
Posting workers is an opportunity for company growth but requires careful legal preparation. Ensuring compliance protects your company from penalties and builds employee trust. Contact us if you need professional support in this process.
(Please remember that the information contained in this article is general in nature and focuses on posting within the EU/EEA/Switzerland. Each case of posting requires individual analysis, particularly verification of the specific host country’s regulations. This article does not constitute legal or tax advice.)
