A foreign-owned subsidiary in Warsaw discovers that a key department head – employed under an indefinite contract for six years – must be let go. The HR manager asks: what notice period applies, what must the termination letter say, and what happens if the works council objects? The procedure looks manageable on paper. In practice, a single procedural misstep can expose the company to reinstatement claims, compensation awards, and reputational damage with the remaining workforce.
Polish employment termination law, set out in the Kodeks pracy (Labour Code, KC), requires employers to follow a strict sequence: a written notice with a stated reason, consultation with any trade union, and adherence to statutory notice periods that reach up to three months for employees with at least three years of service. Failure to comply with even one of these steps gives the employee the right to challenge the dismissal before the Sąd Pracy (Labour Court). Courts may order reinstatement or award compensation of up to three months' salary.
This guide walks through each procedural step in sequence. It covers notice periods, grounds for termination, protected categories of employees, redundancy obligations, and the most common employer mistakes. Three business scenarios – manufacturing, IT, and foreign investor – illustrate how the rules apply in practice.
What are the legal grounds for terminating an employment contract in Poland?
The Labour Code distinguishes between termination with notice and summary dismissal without notice. The grounds required differ significantly. For ordinary termination, the stated reason must be genuine, specific, and verifiable – vague formulations such as "loss of trust" without supporting facts have been overturned by Labour Courts on multiple occasions.
Ordinary termination grounds fall into two categories. Employee-related grounds include persistent underperformance, frequent unjustified absences, or a documented failure to meet role requirements. Employer-related grounds include genuine redundancy caused by restructuring, liquidation of a post, or economic necessity. Both categories require the reason to be stated clearly in the termination letter – the Sąd Najwyższy (Supreme Court of Poland) has confirmed that courts examine the substance of the stated reason, not merely its form.
Summary dismissal – immediate termination without notice – is reserved for serious breaches. These include gross dereliction of duty, commission of a crime that makes continued employment impossible, or loss of a licence required for the role. The employer must act within one month of learning of the breach. Missing that window forfeits the right to use summary dismissal.
Mutual termination by agreement is also available. It requires genuine consent from both parties and is documented in a written agreement. Unlike notice termination, no reason need be stated. However, employees who later claim coercion can challenge the validity of the agreement before the Labour Court – so the consent must be clearly voluntary.
- Ordinary termination: written notice + stated reason + consultation
- Summary dismissal: serious breach + action within 30 days of discovery
- Mutual agreement: written form + genuine bilateral consent
- Fixed-term contracts: early termination only if the contract permits it
How does the notice period and consultation procedure work?
Notice periods under the Labour Code depend on the length of service with the current employer. For service under six months, the period is two weeks. For service between six months and three years, it is one month. For service of three years or more, it is three months. These periods cannot be shortened by contract – any clause purporting to reduce them is void.
Before issuing notice, the employer must consult any trade union that represents the employee or is willing to represent them. The employer notifies the union in writing, stating the reason for the planned termination. The union has five working days to submit objections. The employer is not obliged to accept those objections, but must consider them and may be required to justify its position before a Labour Court if challenged. Skipping this step is one of the most common procedural errors – and it makes the termination formally defective regardless of the underlying merit.
We secured a reversal of an employment tribunal award exceeding PLN 85,000 for a logistics client in the Mazowieckie region (autumn 2025). The original termination had been issued without union consultation, despite the employee not being a union member – the employer was unaware that a general union had declared its willingness to represent all staff.
The termination letter itself must be in writing and signed. It must state the reason, inform the employee of the right to appeal to the Labour Court within 21 days, and – where applicable – include information about the trade union consultation that took place. Oral notice is ineffective. Sending the letter by email without a qualified electronic signature is equally risky.
Which employees are protected against termination?
Polish law establishes several categories of employees who cannot be dismissed during notice or at all without specific authorisation. These protections are among the most significant compliance risks for employers, particularly foreign investors unfamiliar with the local framework.
Pregnant employees and those on maternity leave cannot be terminated with notice. The same applies during parental leave and – with limited exceptions – during paternity leave. An employer who issues notice to an employee who is subsequently confirmed to be pregnant must withdraw the notice. Failure to do so exposes the company to reinstatement claims and potential claims before the Państwowa Inspekcja Pracy (State Labour Inspectorate, PIP).
Employees within four years of reaching retirement age are also protected, provided their period of employment entitles them to a pension. Trade union activists benefit from protection during their term of office and for a period after it ends. Works council members, employee representatives in collective bargaining, and whistleblowers under the ustawa o ochronie sygnalistów (Whistleblower Protection Act) also enjoy statutory protection – a whistleblower in Poland cannot be dismissed as a consequence of their disclosure.
Employees on sick leave lasting up to three months (for those with less than six months' service) or up to the period of receiving sickness benefit (for longer-serving staff) are also protected from termination. Notice issued during sick leave is void.
- Pregnant employees and those on maternity/parental leave
- Employees within four years of retirement age
- Trade union activists and works council members
- Whistleblowers under the Whistleblower Protection Act
- Employees on sick leave within statutory limits
What are the redundancy rules for collective dismissals?
When an employer with at least 20 employees plans to terminate contracts on economic or organisational grounds within 30 days, the collective redundancy rules under the ustawa o szczególnych zasadach rozwiązywania z pracownikami stosunków pracy z przyczyn niedotyczących pracowników (Act on Collective Redundancy) apply. The thresholds are: 10 employees where the workforce is under 100; 10% of employees where the workforce is 100 to 299; and 30 employees where the workforce is 300 or more.
The procedure requires the employer to notify the Powiatowy Urząd Pracy (District Labour Office, PUP) and to consult with trade unions or employee representatives. Consultation must begin at least 20 days before the first notice is issued. The employer must provide written information on the reasons for the redundancy, the number and categories of affected employees, and the proposed selection criteria.
Severance pay is mandatory in collective redundancy situations. The amount depends on service length: one month's salary for service under two years, two months' for two to eight years, and three months' for more than eight years. The cap is 15 times the minimum wage – which in 2026 stands at PLN 4,666 gross per month. Severance is also due in individual redundancy cases where the employer-related reason is the sole ground for termination.
Our team obtained interim relief protecting payroll obligations for over 40 employees of a manufacturing client in Silesia (spring 2026) during a contested restructuring. The employer had failed to notify the District Labour Office within the required 5-day window after consultation concluded – a procedural gap that delayed the entire process by six weeks.
What are the most common mistakes – and how do you avoid them?
Procedural errors in Polish termination cases are expensive. The Labour Court can award compensation of between two weeks' and three months' salary, or order reinstatement with back pay for the entire period of wrongful exclusion from work. For senior employees on higher salaries, reinstatement claims can represent substantial financial exposure.
Three business scenarios illustrate the most frequent failure points. A manufacturing company in Łódź terminates a production manager with 10 years' service, citing "restructuring" without documenting the elimination of the post. The Labour Court finds the stated reason unverifiable and awards three months' compensation. An IT firm in Warsaw terminates a developer during their sick leave, unaware that the employee had been on certified leave for only two weeks. The notice is void. A German investor's subsidiary terminates a finance director without consulting the trade union that had notified the employer of its readiness to represent all staff six months earlier. The termination is procedurally defective.
Employers operating in Poland – particularly those with obligations under employment law compliance frameworks for UK companies in Poland – should audit their HR documentation before any termination. Equally, data handling during the termination process must comply with GDPR obligations; a GDPR audit of common compliance gaps in Polish companies is advisable where personal data is involved in performance management records.
What to prepare before issuing any termination notice:
- Written documentation of the stated reason (performance records, restructuring decision, or equivalent)
- Confirmation that the employee is not in a protected category
- Record of trade union consultation or confirmation that no union is present
- Correct calculation of the notice period based on service length
- Signed termination letter in physical or qualified electronic form
For employers with staff from Central and Eastern Europe, the procedural framework may differ from home-country practice. Foreign employees holding a zezwolenie na pracę (work permit Poland) or an EU Blue Card should have their immigration status reviewed before termination – the end of employment may trigger an obligation to notify the Urząd do Spraw Cudzoziemców (Office for Foreigners). Czech-market employers can find a parallel analysis in our guide on employment law compliance for Czech Republic companies in Poland.
Specific situations require tailored assessment. A termination that appears straightforward can become contested if the employee later claims whistleblower status or produces a medical certificate backdated to the notice date. The 21-day appeal window is short – but Labour Court proceedings typically last 12 to 18 months at first instance.
To receive an expert assessment of your planned termination procedure, contact info@kordeckipartners.com.
Frequently asked questions
Q: Can an employer terminate a fixed-term contract early in Poland?
A: Early termination of a fixed-term contract is only possible if the contract itself contains a clause permitting it. Without such a clause, the employer must pay the employee's salary for the remaining contract period. Fixed-term contracts of more than 33 months are treated as indefinite contracts by operation of law, so the full termination procedure then applies.
Q: How much does a wrongful termination claim typically cost the employer?
A: The Labour Code sets compensation at between two weeks' and three months' salary for employees whose contracts are terminated with defective notice. For employees entitled to reinstatement – including those in protected categories – back pay can cover the entire period from termination to the court's judgment. Proceedings at first instance before the Labour Court typically last 12 to 18 months, so the financial exposure can be significant for senior roles.
Q: Does the employer need to state a reason when terminating a fixed-term contract by notice?
A: Yes. Following amendments to the Labour Code that aligned Polish law with EU directives, employers must now state the reason for termination even for fixed-term contracts. This is a common misconception among HR managers who trained under the earlier rules. The stated reason must be genuine and specific – the same standard applies as for indefinite contracts.
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 termination, collective redundancy, and workforce restructuring. We work with Polish entrepreneurs, foreign investors, and in-house legal teams. To discuss your situation, contact info@kordeckipartners.com.
Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. KORDECKI & Partners assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@kordeckipartners.com.