How many people in Poland do you think are self-employed? According to recent statistics, Poland is among the three countries with the highest number of self-employed people. However, not all of these people run their own business. Some work for other companies, being their employees under a special form of employment contract.
You may ask why not just use an employment contract (Umowa o pracę) like all other business owners in Poland. In such a case, entrepreneurs lose a significant amount of money paying taxes, social contributions and other deductions for their employees. This prompted them to find a solution that would help them save money by hiring employees to their company. In fact, such a way already exists and it is called B2B contracting. In this article, we will explain in more detail what a B2B contract in Poland is, how it is used to hire employees and who can benefit from it.
B2B contract in Poland - what is it?
Generally speaking, B2B stands for business to business. In other words, this is a contract that is concluded directly between two legal entities. Imagine that a grocery store uses the services of a transportation company, so they enter into a B2B and this is far from uncommon today.
However, entrepreneurs have realized how this contract can be used with a little trickery. They hire people to work for them who have self-employed status. An employer who chooses to enter into a B2B contract can expect significant savings. There is also no risk of liability for damages due to unlawful termination of the labor contract, failure to respect the rights of the employee, etc.
Why is a B2B contract more favorable for the employer?
If you have recently looked for a job on popular job search sites in Poland, you may have seen the clause «only for self-employed persons/individual entrepreneurs». In this way employers immediately make it clear that they prioritize B2B contracting instead of a regular employment contract. This is not surprising, because for the employer this way of employing employees offers many important advantages:
Taxes. According to Polish law, the employer is fully exempt from income tax and social security costs when working under a B2B contract.
Contributions to ZUS. Payment of sickness benefit up to 33 days per year - the self-employed person pays ZUS contributions independently and receives sickness benefit directly from ZUS.
Vacation. The employer is exempt from paying for the employee's full vacation as provided for in a normal employment contract.
Risks. The employment contract cannot be terminated by pregnant women, employees on sick leave, pre-retirement age, etc.
Actually, the common Umowa o pracę in Poland well protects the rights of ordinary employees, while employers bear all the risks. They prioritize hiring employees under a B2B contract in order to avoid risks and save money.
Features of the relationship between employer and employee under a B2B contract
Above we told you that a B2B contract is only beneficial for the entrepreneur, but that's not quite true. Since you are both business units, the employee is not a subordinate, but acts as a partner. In such a case, it is very important to pay attention to what exactly is spelled out in this contract, as your rights and obligations will depend on it.
Another peculiarity is that the employer can not force you to work on a fixed schedule if you have concluded a B2B contract. Why is this so? The special feature of such a contract is the flexibility of work.
When can a B2B contract be recognized as an employment contract?
Conclusion of an employment contract is an activity within the scope of the Polish Labor Code and according to Article 22, by establishing an employment relationship, the employee undertakes to perform work of a certain type for and under the direction of the employer and at a place and time designated by the employer, and the employer undertakes to employ the employee for remuneration. This basic definition of an employment relationship boils down to its key elements:
Working for an employer under his direction.
Performing the duties of an employee at a place and time determined by the employer.
Obligation to pay remuneration.
What is needed to formalize a B2B contract? Certainly, first of all, the employee must meet the main requirements. He must be a business entity in Poland. In simple words, the employee must have a registered sole proprietorship. How to open a sole proprietorship in Poland, including foreigners, we told in our article earlier. Migration agents aksis are ready to help you with the official registration of business activities in Poland.
