Employment law compliance for Romania companies

A Bucharest-based IT services company wins its first major Polish contract and immediately begins assigning engineers to Warsaw. The HR team assumes that because Romania and Poland are both EU member states, employment formalities are minimal. Three months later, the company faces a Social Insurance Institution (ZUS) inquiry, unregistered employment relationships, and potential penalties running into tens of thousands of zlotys. The assumption was wrong.

Romanian companies operating in Poland must comply with Polish employment law from the first working day of any employee based or posted there. This covers registration with the National Court Register (KRS) or the Central Registration and Information on Business (CEIDG), social insurance enrolment through ZUS, and adherence to Polish minimum wage, working time, and whistleblower protection rules. Failure to comply triggers personal liability for management and may preclude the company from bidding on future Polish public contracts.

This guide walks through the four key compliance areas in sequence: registration and posting formalities, employment contracts and working conditions, social insurance and payroll obligations, and the whistleblower framework. Each section includes a concrete timeline, cost indicator, and the most common mistakes Romanian companies make at that stage.

How does registration work for Romanian companies employing staff in Poland?

Registration is the foundation. Without it, every subsequent employment action – payroll, social insurance, tax withholding – rests on an unstable base. Polish law distinguishes between two scenarios: a Romanian company posting workers temporarily to Poland, and a Romanian company establishing a permanent presence. The rules differ significantly, and choosing the wrong path is the most frequent early mistake.

For temporary postings lasting up to 12 months (extendable to 18 months in justified cases), the Romanian employer does not need to register a Polish entity. It must, however, notify the National Labour Inspectorate (Państwowa Inspekcja Pracy, PIP) before work begins. The notification is submitted electronically and must include the posting period, the Polish client's details, and the identity of the posted workers. Missing this notification exposes the Romanian company to fines of up to PLN 30,000 per inspection.

For permanent or recurring operations, the company must register a branch (oddział) or a subsidiary with the National Court Register (KRS). Registration takes approximately four to six weeks and requires a notarised set of incorporation documents, a Polish-language translation, and a designated representative. The KRS entry also triggers VAT registration obligations, which fall outside employment law but affect payroll administration directly.

Submit PIP posting notification before the first working day in Poland
Appoint a local contact person accessible to PIP and ZUS
Decide on branch versus subsidiary based on expected duration
Obtain a Polish tax identification number (NIP) for payroll purposes
Keep copies of A1 certificates for all posted workers on-site

Romanian companies frequently underestimate the A1 certificate requirement. The A1 document, issued by the Romanian social insurance authority (Casa Naţională de Pensii Publice), confirms that the worker remains covered by Romanian social security during the posting. Without it, ZUS may demand that the employer register the worker under the Polish social insurance system retroactively – a costly and administratively burdensome correction. For a detailed comparison of the posting and A1 process from another EU jurisdiction, see our guide on posted workers from Czech Republic to Poland and A1 certificates.

What employment contract terms must Romanian companies apply in Poland?

Polish employment law sets mandatory minimum standards that apply to all workers performing work on Polish territory, regardless of the employer's nationality or the law governing the contract. These are not default rules that parties can contract out of. They are floor conditions, and any Romanian-law contract that falls below them is unenforceable to that extent under Polish law.

The Polish minimum wage is revised annually. From January 2025, it stands at PLN 4,666 gross per month for full-time employment. Any posted or locally hired worker earning less is automatically entitled to the Polish minimum, and the employer owes the difference retroactively. Working time rules cap the standard week at 40 hours, with overtime limited to 150 hours per calendar year unless a collective agreement extends this. Night work attracts a mandatory supplement of 20 percent of the hourly minimum wage rate.

Contracts for locally hired employees must be in writing and delivered to the employee before work begins – not on the first day, but before. Polish courts treat late delivery as a procedural violation that can complicate later termination proceedings. Fixed-term contracts are limited to three consecutive agreements or 33 months in total; exceeding either threshold converts the relationship into an indefinite contract by operation of law.

Three business scenarios illustrate how these rules apply in practice. A Romanian manufacturing company posting workers to a Wrocław factory must pay Polish minimum wage if it exceeds the Romanian equivalent – which it currently does. A Romanian IT firm hiring locally in Warsaw must issue written contracts before onboarding and comply with the 33-month fixed-term cap. A Romanian logistics operator using subcontractors must verify that the subcontractors' employees also receive Polish minimum wage, or face joint and several liability under the posted worker rules.

For Romanian companies relocating senior staff rather than posting project workers, the legal framework shifts further. Long-term relocations often involve EU Blue Card applications or intra-company transfer permits, depending on the employee's nationality. Our guide on relocating employees to Poland from the Netherlands addresses the mobility mechanics that apply equally to Romanian employers moving non-EU nationals to Poland.

Every employment contract must also inform the employee of applicable collective agreements, grievance procedures, and the identity of the entity responsible for social insurance contributions. Omitting this information does not invalidate the contract, but it is a separate administrative violation subject to PIP fines.

How does social insurance and payroll registration work in Poland?

Social insurance registration is mandatory and time-sensitive. A Polish-registered employer must enrol each new employee with ZUS within seven days of the employment start date. Late registration does not eliminate the obligation to pay contributions retroactively; it simply adds penalty interest and triggers an audit flag. For posted workers covered by a valid A1 certificate, ZUS registration is not required – but the A1 must be available for inspection throughout the posting.

Polish social insurance contributions are substantial. The employer's share currently amounts to approximately 20.48 percent of gross salary (covering pension, disability, and accident insurance), plus a variable work fund contribution. The employee's share is approximately 13.71 percent. Both shares are calculated on the gross contractual salary, not on a reduced base. Romanian companies sometimes attempt to apply Romanian contribution rates to Polish-based employees – this is incorrect and will be corrected by ZUS with interest.

We secured a correction of a ZUS retroactive assessment exceeding PLN 180,000 for a Romanian logistics client operating in the Silesia region (autumn 2025). The assessment arose from a misclassification of posted workers as independent contractors. Early restructuring of the engagement model reduced the liability by approximately 60 percent.

Payroll must be processed through a Polish bank account or a registered payroll agent. Monthly payroll declarations (ZUS DRA) are due by the 15th of the following month. Annual income tax settlements for locally hired employees must be submitted to the relevant Tax Office (Urząd Skarbowy) by the end of January for the preceding year. Romanian companies without a Polish entity must appoint a Polish payroll representative to fulfil these obligations.

What whistleblower and compliance obligations apply to Romanian employers in Poland?

Poland's whistleblower protection law, implementing EU Directive 2019/1937, entered into force in September 2024. It applies to all employers with 50 or more workers in Poland – whether those workers are posted, locally hired, or a combination of both. The law requires the employer to establish an internal reporting channel, designate a person responsible for handling reports, and adopt a written whistleblower protection policy within 14 days of reaching the 50-worker threshold.

The obligation catches many Romanian companies off guard. A company that posts 60 workers to a single Polish site for a construction project crosses the threshold immediately. Failure to implement the reporting channel exposes the company – and its responsible managers personally – to criminal liability. The penalty for obstructing a whistleblower report can reach PLN 1,080,000 under the current statutory scale.

We assisted a Romanian construction group in establishing a compliant internal reporting channel for its Polish operations in the Małopolska region (spring 2025). The channel was operational within three weeks of instruction, covering both Polish-language and Romanian-language submission options.

Beyond whistleblower obligations, Romanian employers must also comply with the General Data Protection Regulation (GDPR) requirements specific to employment relationships. Employee consent is not a valid legal basis for most HR data processing in Poland; legitimate interest or contractual necessity must be documented instead. Workplace monitoring – including GPS tracking of delivery vehicles and email monitoring – requires prior works council consultation where one exists, and written notice to employees in all cases. For companies leasing Polish office space as part of their operational setup, the compliance environment also intersects with lease obligations; see our note on office lease review for Romania tenants for the property-side obligations.

The compliance checklist for this area is short but non-negotiable. Count the workers. If the number reaches or is likely to reach 50, begin implementation immediately. Do not wait for a PIP inspection to prompt action.

What to prepare before your first hire or posting in Poland

Getting the sequence right matters. Romanian companies that begin hiring before completing registration create a compliance gap that is expensive to close retroactively. The checklist below reflects the order that minimises exposure.

Obtain A1 certificates from the Romanian social authority for all posted workers before departure
Submit PIP posting notification at least one business day before work begins
Register the Polish entity (branch or subsidiary) if operations will exceed 12 months
Enrol locally hired employees with ZUS within seven days of the start date
Implement the whistleblower reporting channel if the 50-worker threshold is met or expected

Timeline summary: A1 certificates take two to four weeks from the Romanian authority. PIP notification is same-day electronic. KRS branch registration takes four to six weeks. ZUS enrolment is immediate upon registration. Whistleblower channel implementation requires a minimum of two to three weeks for policy drafting, translation, and communication.

Cost indicators vary by structure. A posting-only setup (no Polish entity, A1 certificates, PIP notification) costs relatively little in legal fees – typically EUR 1,500 to EUR 3,000 for the initial setup. Establishing a Polish branch adds notarisation, translation, and KRS filing costs, typically EUR 3,000 to EUR 6,000. Ongoing payroll administration through a Polish agent runs approximately EUR 50 to EUR 150 per employee per month, depending on volume.

The decision matrix is straightforward. If the engagement is a single project under 12 months: posting with A1 and PIP notification. If operations are recurring or the client requires a Polish-registered counterparty: branch or subsidiary. If hiring locally from the start: subsidiary with full ZUS and payroll infrastructure from day one.

For Romanian companies with specific questions about their situation, a structured compliance review – covering registration, contracts, social insurance, and whistleblower obligations – typically takes five to seven business days and produces a prioritised action list.

Every Romanian company's Polish employment exposure is specific to its headcount, sector, and operational model. The consequences of non-compliance are not abstract: ZUS retroactive assessments, PIP fines, and personal liability for managers are irreversible once triggered. To receive an expert assessment of your company's employment compliance position in Poland, contact info@kordeckipartners.com.

Frequently asked questions

Q: Does a Romanian company need a Polish work permit for its Romanian employees posted to Poland?

A: No. Romanian nationals are EU citizens and do not require a work permit in Poland. They have the right to work freely in all EU member states. However, the posting notification to the National Labour Inspectorate is still mandatory, and A1 certificates must be obtained to confirm continued Romanian social insurance coverage. The work permit Poland requirement applies only to non-EU nationals.

Q: How long can a Romanian company post workers to Poland before it must register a Polish entity?

A: The standard posting period is 12 months. This may be extended by a further six months (to 18 months total) if the Romanian employer notifies the host-state authority and provides a reasoned justification. Beyond 18 months, or where the nature of the work indicates a permanent establishment, Polish corporate registration becomes obligatory. Repeated short-term postings to the same client that together exceed these thresholds may also trigger registration requirements.

Q: Is there a common misconception about EU Blue Card applications for Romanian employers?

A: Yes. Many Romanian companies assume the EU Blue Card is relevant for their own Romanian staff. It is not – EU Blue Card applications are reserved for highly qualified non-EU nationals. Romanian nationals, as EU citizens, access Poland through free movement rules. The EU Blue Card becomes relevant only when a Romanian company wants to bring a non-EU national (for example, a Ukrainian or Indian specialist) to work in Poland. In that case, the card requires a minimum gross salary of at least 150 percent of the average Polish gross salary, and the application is processed by the relevant Voivode's office (Urząd Wojewódzki).

About KORDECKI & Partners

KORDECKI & Partners is a law firm based in Warsaw and Krakow, advising business clients across 30 jurisdictions. Our team combines expertise in Polish and international law with a practical approach to employment compliance, cross-border mobility, and corporate registration for foreign investors. We work with Polish entrepreneurs, foreign investors, and in-house legal teams. To discuss your situation, contact info@kordeckipartners.com.