A Budapest-based engineering services company secured a major infrastructure contract in Poland in early 2025. It planned to post a team of 14 specialists to the Mazowieckie region for nine months. The company's HR director assumed that EU free movement rules made the paperwork straightforward. They were wrong.
Posting workers from Hungary to Poland requires A1 certificates issued by the Hungarian social security authority, formal notification to the Polish Chief Labour Inspectorate (Państwowa Inspekcja Pracy, PIP), and compliance with Polish minimum employment conditions. Failure to notify PIP before the posting begins triggers administrative fines. The A1 certificate itself must be obtained before the worker crosses the border – retroactive applications are rejected.
This case study traces how the company identified its exposure, corrected its compliance position, and completed the posting without penalty. The lessons apply to any Hungarian employer sending workers to Poland under an EU service contract.
What was the background and where did the risk arise?
The engineering firm had posted workers within the EU before – mainly to Austria and Germany. Its internal process relied on the labour law team in Budapest, which was familiar with German notification rules. Poland was treated as a comparable jurisdiction. That assumption created the gap.
Polish posted-worker rules derive from the EU Posted Workers Directive as implemented in Polish labour law. The framework requires employers to designate a liaison person in Poland, maintain employment documentation accessible during the posting, and apply Polish minimum wage conditions. In 2025, the Polish minimum hourly rate exceeded HUF 1,600 at prevailing exchange rates – higher than the rate the company had budgeted for two of its junior technicians.
The firm had also overlooked the A1 certificate timeline. Hungarian social security rules require the employer to apply to the Hungarian National Tax and Customs Administration (Nemzeti Adó- és Vámhivatal, NAV) for each worker's A1 certificate before the posting starts. Processing takes up to 30 days. The company had allowed three days. Work was due to start in six weeks.
Our team was engaged when the company's Polish contractor flagged the missing PIP notification during a pre-commencement audit. That flag, while alarming at the time, was the best possible early warning.
How did we structure the compliance strategy?
The immediate priority was sequencing. A1 certificates, PIP notification, and minimum-wage alignment each had to be resolved in the correct order and within a compressed timeline. Missing any one element would expose the employer to fines and – more seriously – could allow PIP to suspend the posting.
We advised the client to file all 14 A1 applications with NAV simultaneously, using the electronic portal. We drafted standardised supporting documentation covering the employment contracts, proof of habitual employment in Hungary, and the Polish service contract. Batch filing reduced the processing load and allowed NAV to treat the applications as a single employer submission. All 14 certificates were issued within 22 days.
In parallel, we prepared the PIP notification. Polish law requires this to be submitted electronically through the PIP portal at least one day before the posting begins. The notification must include the employer's details, the liaison person's contact information, the expected duration, and the work location. We filed on day 23 – one day after the last A1 certificate arrived, and 14 days before the planned start date.
We also recalculated the two junior technicians' effective hourly rates against the 2025 Polish minimum wage. The shortfall was modest – under PLN 4 per hour – but real. The client amended the relevant employment contracts before departure.
We secured full compliance for this client in the Mazowieckie region (spring 2025), avoiding any PIP enforcement action and allowing the project to start on schedule.
What did the process reveal about systemic gaps?
The matter exposed three gaps that appear repeatedly in cross-border posting cases. Each is worth examining separately.
First, the A1 certificate is not a formality. It is proof that the worker remains covered by Hungarian social security during the posting. Without it, the worker may be treated as subject to Polish ZUS (Zakład Ubezpieczeń Społecznych, ZUS) contributions – a significant cost exposure for the employer and a source of double-contribution risk. The certificate must be carried by the worker and produced on demand during a PIP inspection.
Second, the liaison person requirement is substantive. Polish law requires the designated contact to be reachable during working hours in Poland and to hold physical copies of employment contracts, payslips, and working-time records. A Budapest-based HR contact does not satisfy this requirement. The company appointed a Warsaw-based project manager as liaison, which also improved day-to-day contract management.
Third, equal-treatment obligations extend beyond minimum wage. Posting law covers working time, rest periods, paid annual leave, and health-and-safety standards. For a nine-month posting – close to the 12-month threshold after which broader Polish labour conditions apply – the company needed a clear record of compliance across all these dimensions. We helped the client build a simple compliance log, updated monthly by the liaison person.
For companies considering similar cross-border arrangements, our earlier analysis of employment law compliance for Spain companies in Poland sets out how the same framework applies across different EU posting corridors.
What are the transferable lessons for Hungarian employers?
This matter is not unusual. Hungarian companies expanding into Poland frequently underestimate the administrative layer that sits beneath EU free movement. The lessons below apply regardless of sector or posting duration.
Start the A1 process at least 30 days before departure. NAV processing times vary. Batch applications for larger teams may take longer. Build the certificate timeline into the project schedule, not around it.
Verify Polish minimum wage before fixing remuneration. The Polish minimum wage is reviewed annually and applies to all posted workers regardless of their home-country pay scale. A shortfall – even a small one – is a strict-liability breach under Polish law.
Appoint a Poland-based liaison person early. This person becomes the single point of contact for PIP inspectors and the Polish contractor. Choosing someone already on-site reduces cost and improves responsiveness.
Understand the 12-month threshold. Postings exceeding 12 months (extendable to 18 months with notification) attract a broader set of Polish employment conditions. Plan project timelines with this threshold in mind.
Keep documentation in Polish or English. PIP inspectors are not required to accept documents in Hungarian. Employment contracts and payslips should be translated before the posting starts.
Hungarian employers managing tax registration obligations in Poland alongside the posting should also review what KSeF means for your business in Hungary, as VAT compliance and employment compliance often run in parallel during cross-border projects.
Companies with mixed workforces – including contractors alongside posted employees – should assess reclassification risk carefully. Our analysis of B2B reclassification risk and PIP enforcement powers in 2026 covers how PIP distinguishes genuine B2B arrangements from disguised employment relationships.
Our team obtained full A1 and PIP compliance for a second Hungarian client – a logistics firm posting 8 drivers to the Silesia region (autumn 2025) – where the initial documentation had been prepared without legal advice and contained errors that would have triggered a ZUS contribution dispute.
A specific posting situation requires specific analysis. Errors in A1 documentation or PIP notification are not easily corrected after the fact, and enforcement action by PIP can suspend work on-site – an irreversible disruption to project timelines.
To discuss how posted-worker rules apply to your Hungarian company's operations in Poland, contact info@kordeckipartners.com.
Frequently asked questions
Q: Can a Hungarian employer submit the PIP notification after the posting has already started?
A: Polish law requires notification before the posting begins. Late notification is treated as a failure to notify and may result in a fine. PIP does not have discretion to waive this requirement. If a posting has already started without notification, legal advice should be sought immediately to assess the best corrective steps.
Q: Does the A1 certificate expire if the posting is extended?
A: Yes. An A1 certificate is issued for a specific period. If the posting is extended, a new or amended certificate must be obtained from NAV before the original certificate expires. Extensions are not automatic. Employers often overlook this when projects overrun their original schedule.
Q: Is a work permit required for Hungarian workers posted to Poland?
A: No work permit is required for EU nationals, including Hungarian workers. However, the A1 certificate, PIP notification, and compliance with Polish employment conditions are all mandatory. The absence of a work permit requirement does not mean the posting is free of administrative obligations. The EU Blue Card applies only to third-country nationals, not to Hungarian citizens exercising EU free movement rights.
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 postings, and global mobility. 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.