An employer's guide
If you’re planning to hire employees, you must take the form of the contract under consideration, as the form of contract describes the employer’s obligations.
What type of a contract should you choose when employing?
The choices are:
1. Job contract:
• for an indefinite period, a fixed-term contract, a trial or replacement contract.
2. Civil contracts:
• a written contract,
• a work contract.
The rules that apply to employers are mainly due to the Labor Code, the Civil Code, the law on social insurance system and the Income Tax Act.
The Labor Code describes issues related to working time, wages and annual leave. It also regulates the basic range of issues relating to health and safety at work.
The employer’s duties:
- registering the employee for social insurance within seven days from the date the insurance liability occurs, ie. from the day the employment relationship starts. The employer’s notification about the employee, provided as a filled-in ZUA form, includes:
• social security insurance (includes retirement, pension, sickness and accident insurances),
• health insurance,
• Labor Fund,
• Guaranteed Employee Benefits Fund.
- record keeping, accounting and timely payment of wages.
- monthly billing and discharge of tax on the income of employees.
- providing the employee with examination by a doctor of occupational medicine on the company’s expense. The employer must not allow an employee to work without a valid medical certificate confirming the absence of contraindications for work in the specific job area.
- providing the employee with health and safety training. Before being admitted to work, the employee must receive initial (as well as, as an option, position-related) training in the aspects of health and safety.
- ensuring safe and healthy working conditions.
- keeping records in matters relating to employment as well as the personal files of all employees.
- ensuring the employee with personal protective equipment, work clothing and footwear to be used during work, free of charge.
- organizing work in a way that ensures full use of the working time, as well as high productivity and quality of work due to optimal use of the employees’ talents and skills.
- helping employees improve their professional qualifications.
- counteracting bullying and discrimination amongst employees.
- and most importantly - respect for the dignity and other personal rights and freedoms of the employee.
Formalities related to employee recruitment
• documents needed for personal records (a completed personal questionnaire signed by the employee, work certificates from previous employers)
• an employment contract signed between the employer and the employee
• PIT-2 (the statement made by an employee for the purposes of calculating monthly advances on income tax). IMPORTANT: starting from 2017, a new PIT-2 form is in use
• employee training in the field of health and safety - a signed statement confirming familiarization with work regulations as well as with the provisions and principles for safety and health at work
• a valid medical certificate confirming absence of contraindications for working at the given workplace - at the expense of the employer
• consent by the employee to the processing of personal data
• a signed proof of the employee’s familiarization with the information on equal treatment for men and women
• a signed confirmation of assigning the employee with company property (eg. a car or a laptop)
In addition, an employee who is a parent (mother or father) or guardian of a child should inform the employer in writing of the intention to or the decision not to exercise the privileges associated with childcare.
The employer is obliged to notify an employee to Social Security within seven days from the date of insurance liability, ie. From the date of the employment relationship for printing ZUA.
The formalities for employee dismissal
The Labour Code provides for five essential modes for termination of employment:
1. under the agreement of both parties,
2. a statement by one of the parties with a period of notice (termination of employment with notice),
3. a statement by one of the parties without prior notice (termination of employment without notice),
4. with the passage of time period for which the contract was conducted,
5. the date of completion of the work for which the contract was conducted.
If the agreement was terminated by notice by the employer, the employee is entitled to full price holidays in search of work, respectively:
• 2 working days if the notice period is two weeks or a month,
• 3 working days if the notice period is three months.
Also, the employer should not forget about the mutual settlement of entrusted property.
Obligations of the employer by the dismissal of the employee:
- immediate provision of the employee with a work certificates.
- deregistration of the employee from ZUS using the ZWUA form.
- payment of the equivalent for unused leave. If the contract is terminated by notice, the employee can use his holiday entitlement during the notice period. The employer may grant leave during the notice period without the consent of the employee.
It should by now be clear that both the employment of the employee as well as his release make the employer obliged to fulfill a number of formalities. The employer must also make a choice related to the nature of the contract on terms of which the employee is employed. Not always should that decision be made based on savings alone, thus favoring civil law contracts. Employers should note that providing a sense of security to employees affects their attitude towards conducted work and also causes a greater sense of attachment to the company.