A Poznań-based IT company hires a developer on a fixed-term contract. Six months later it signs a second fixed-term agreement. A third follows. At no point does the HR team calculate the cumulative duration – until the National Labour Inspectorate (Państwowa Inspekcja Pracy, PIP) arrives for a routine audit and flags that the employee has been working under consecutive fixed-term contracts for 38 months. The consequence is automatic conversion to an indefinite-term contract, with all the protections that entails. The company cannot undo that outcome.
Polish labour law caps fixed-term employment at 33 months in total and limits the number of consecutive fixed-term contracts to three. Once either limit is exceeded, the contract is treated by law as one concluded for an indefinite term – from the moment of breach, not from any future date. The rule applies to most private-sector employers and covers both Polish nationals and foreign workers holding a work permit in Poland. Exceptions are narrow and must be documented in advance.
This guide walks through the 33-month rule step by step: how the limits are calculated, which contracts count and which do not, what conversion means in practice, and how different business scenarios – manufacturing, IT, and foreign investor – interact with the rule. A checklist and FAQ close the article.
How do the 33-month and three-contract limits work?
Polish employment law – specifically the Kodeks pracy (Labour Code, KP) – sets two parallel caps for fixed-term employment with a single employer. The first is a duration cap of 33 months. The second is a numerical cap of three consecutive fixed-term contracts. Whichever limit is reached first triggers automatic conversion. Both caps run simultaneously, so an employer cannot avoid conversion by staying below the month count while signing a fourth contract.
The counting starts from the first fixed-term contract in the sequence. Breaks between contracts matter: a gap of more than one month resets the count. A gap of one month or less does not interrupt the sequence. This one-month rule is frequently misread – some employers assume any break resets the clock. It does not, unless the gap genuinely exceeds 30 days.
The conversion is automatic. No court ruling is needed. No administrative decision is issued by the PIP or the National Court Register (Krajowy Rejestr Sądowy, KRS). The contract simply becomes indefinite-term by operation of law on the day the 34th month begins, or the day the fourth fixed-term contract is concluded. Employers who continue treating it as fixed-term expose themselves to wrongful-dismissal claims and severance obligations they had not budgeted for.
One concrete figure to hold in mind: the 33-month cap is a hard ceiling, not a guideline. There is no discretion for the employer or the parties to agree otherwise in the contract itself.
Which contracts count toward the limit – and which do not?
Not every fixed-term arrangement counts toward the 33-month total. The Labour Code carves out several categories. Identifying them early is the most effective way to manage long-term project staffing without inadvertently triggering conversion.
The following contract types are excluded from the cap:
- Contracts concluded to replace an absent employee (replacement contracts)
- Contracts for work of a seasonal or periodic nature
- Contracts for a term of office (e.g., a management board member employed under a KP contract for the duration of a mandate)
- Contracts where the employer demonstrates objective reasons connected to the employer's actual needs – provided the employer notifies the PIP in writing within five business days of signing
The "objective reasons" exception deserves particular attention. It is the only flexible route available to employers with genuinely project-driven staffing needs. However, the notification to the PIP is not optional. Missing the five-day window forfeits the exception entirely – a lost opportunity that cannot be recovered retroactively. We secured a reclassification reversal for a manufacturing client in the Mazowieckie region (autumn 2025) by documenting objective reasons before the audit rather than after.
Probationary-period contracts (up to three months) do not count toward the 33-month total or the three-contract limit. They stand apart from the fixed-term sequence. One probationary contract per employee per role is permitted; a second probationary contract with the same employee for the same type of work is allowed only if at least three years have passed since the first.
Foreign workers holding an EU Blue Card or a standard work permit in Poland are subject to the same Labour Code rules. The permit type does not create a separate fixed-term regime. An employer who structures employment around a series of one-year work permits – each backed by a fresh fixed-term contract – risks hitting the 33-month cap before the third permit renewal.
What does automatic conversion mean for the employer?
Conversion to an indefinite-term contract is not merely a labelling change. It carries three immediate legal consequences that employers consistently underestimate. First, the employee gains protection against termination without valid cause. Second, the notice periods applicable to indefinite-term contracts apply – up to three months for employees with at least three years of service with that employer. Third, severance on dismissal may be triggered where it would not have applied under a fixed-term arrangement.
The practical cost of an unplanned conversion can be significant. A senior developer on a converted indefinite-term contract who is subsequently dismissed may claim notice pay and severance. For a gross monthly salary of PLN 18,000, a three-month notice period alone represents PLN 54,000 in salary costs – before any dispute over the validity of the grounds for dismissal.
Employers also face a separate risk: the converted employee may file a claim with the Labour Court (Sąd Pracy) challenging a termination that would have been permissible under a fixed-term contract but is unlawful under an indefinite-term one. Labour courts in Warsaw and Kraków have consistently upheld such claims where the conversion was triggered automatically and the employer failed to recognise it.
There is a whistleblower dimension here too. Under the Polish Whistleblower Protection Act, an employee who reports a fixed-term limit violation internally or to the PIP enjoys protection against retaliation from the moment the report is made. This protection runs independently of the employment status question. Employers who react to a report by terminating the employee compound the original exposure.
For a tailored strategy on managing fixed-term exposure before it converts, reach out to info@kordeckipartners.com.
How should manufacturing, IT, and foreign-investor employers approach the rule?
The 33-month rule operates identically across sectors, but the practical pressure points differ. Three scenarios illustrate where the risk concentrates.
Manufacturing. Production facilities often rely on rolling fixed-term contracts to match headcount to order volumes. A line worker hired in January 2024 on a 12-month contract, renewed for another 12 months in January 2025, and renewed again for 12 months in January 2026 will hit the three-contract limit in January 2026 – even though only 24 months have elapsed. The third contract is the trigger, not the month count. Manufacturers should audit all fixed-term contracts annually and identify employees approaching the three-contract ceiling before the renewal date.
IT sector. Software companies frequently structure employment around project timelines. A developer engaged on a fixed-term contract tied to a 24-month development project, then rolled onto a second project contract, reaches 33 months in month 10 of the second contract. If the company also had a probationary period at the start, that three months does not help – it sits outside the count. IT employers should map each employee's contract history in the HR system and set automated alerts at month 27 (six months before the ceiling) to allow time for a deliberate decision: convert proactively or restructure the role.
Foreign investor. A German investor establishing a Polish subsidiary through the KRS often seconds employees from the parent company and simultaneously hires locally on fixed-term contracts to test the market. Posted workers from Spain or other EU member states who later transition to direct Polish employment bring their prior fixed-term history with them if the economic employer relationship is continuous – a point explored in detail in our guide on posted workers from Spain to Poland and A1 certificates. Foreign investors should also review how their subsidiary's governance structure interacts with employment contracts for board-level staff – a topic addressed in our note on corporate governance for Poland subsidiaries.
We obtained a favourable Labour Court ruling for a technology client in Lower Silesia (spring 2026) by demonstrating that a posted worker's prior contract history did not restart the fixed-term count under Polish law because the posting agreement was structurally distinct from a direct employment contract.
What is the step-by-step procedure for managing the 33-month rule?
Compliance is straightforward when managed proactively. The procedure below applies to any employer with fixed-term workers in Poland.
Step 1 – Audit current contracts. Map every fixed-term contract in force. Record the start date of each contract in the sequence, the cumulative duration to date, and the number of contracts already concluded with each employee. This audit should be completed within 30 days of implementing this guide.
Step 2 – Identify employees within six months of the ceiling. Any employee whose cumulative fixed-term duration will reach 27 months within the next six months, or who is on their second contract, needs a decision. The options are: (a) proactive conversion to indefinite-term; (b) termination before the ceiling is reached with proper notice; or (c) structuring the next phase under an excluded category (replacement, seasonal, objective-reasons exception).
Step 3 – Document objective reasons if applicable. If the employer intends to rely on the objective-reasons exception for a new fixed-term contract, the written notification to the PIP must be sent within five business days of signing. Prepare the notification template in advance. The notification must describe the objective reason specifically – generic references to "project needs" are insufficient and have been rejected by PIP inspectors.
What to prepare for the PIP notification:
- Full name and PESEL (or passport number) of the employee
- Start and end dates of the contract
- A specific description of the objective reason justifying the fixed term
- The employer's NIP (tax identification number) and KRS number
- Signature of an authorised representative
Step 4 – Update HR systems. Set calendar alerts at 27 months and at the point of the second contract. Assign responsibility for reviewing alerts to a named HR officer. A missed alert is the most common cause of inadvertent conversion.
Step 5 – Review annually. Fixed-term contract portfolios change continuously. An annual review – ideally in Q1 – catches sequences that began mid-year and would otherwise be overlooked. Employment lawyers in Warsaw advise combining this review with the annual salary review process to ensure it receives management attention.
For employers with cross-border postings, the A1 certificate process for workers arriving from Cyprus and other EU states intersects with the fixed-term count question. Our guide on posted workers from Cyprus to Poland and A1 certificates sets out the social security dimension in detail.
To receive an expert assessment of your fixed-term contract portfolio, contact info@kordeckipartners.com.
Frequently asked questions
Q: Does a break between fixed-term contracts reset the 33-month count?
A: Only if the break exceeds one calendar month. A gap of exactly 30 days or fewer does not interrupt the sequence. Employers who rely on short breaks to reset the count are taking on significant legal risk. The Labour Code is explicit on this point, and the PIP applies it strictly in audits. If a genuine operational interruption of more than 30 days occurs, the employer should document it carefully before signing the next fixed-term contract.
Q: How much does it cost to convert a fixed-term contract to indefinite-term, and how long does it take?
A: The conversion itself carries no fee and takes effect immediately – it is a single written amendment signed by both parties. The real cost question concerns what follows: indefinite-term employees are entitled to notice periods of up to three months (for employees with at least three years of service) and may be entitled to severance of one to three months' salary on dismissal for reasons not attributable to the employee. Employers should model these costs before deciding whether to convert proactively or to terminate before the ceiling is reached.
Q: Can the parties agree in the contract to extend the 33-month limit?
A: No. The 33-month cap and the three-contract limit are mandatory provisions of the Labour Code. They cannot be waived or modified by agreement between the employer and the employee, even in writing and even where the employee explicitly consents. Any contractual clause purporting to extend the fixed-term period beyond these limits is void. The only legitimate route to a longer fixed-term arrangement is the objective-reasons exception, which requires PIP notification within five business days of signing.
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 law, fixed-term contract compliance, work permit Poland procedures, 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.