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B2B or employment contract – which form to choose?

Taking into consideration the dynamically changing job market, both young people who start their careers, but also active employees, are faced with the decision which contract to have concluded with the employer. According to statistics, the B2B contract is becoming more and more popular and favorable nowadays. However, is it profitable for everyone? 

People are more familiar with the traditional “employment contract”, which belongs to the basic forms of employment in Poland. It is also a safe one mainly because the guidelines and rights of the employee are regulated in the Labour Code. The popularity of the employment contract is undoubtedly influenced by the list of benefits included. As examples, paid vacation, occasional or maternity leave. Moreover,the amount of the minimum wage is taken into account and the working time is included in the general length of work. Last but not least a convenient aspect is the lack of stress connected with any kind of contributions, since this obligation rests on the employer. 

However, the employment contract is associated with certain restrictions and obligations for the employee. These include for example an adherence to a strictly defined dimension of work. Furthermore, it is important to adhere to the rules of health and safety in the workplace and to have knowledge about them. One should bear in mind that in the case of an employment contract, the employer has the right to check the validity of dismissals issued by a doctor, by means of which the employee may not be present at work on a given day. 

On the other hand, by taking into consideration the freedom, B2B is interpreted as “Business to Business”. This should be understood as a cooperation between two entities that conduct economic activity. In this case, an employee who would like to have this form of employment is obliged to establish a single-person business activity. Employees on B2B determine their working hours on their own and on the basis of them issue an invoice to the employer. A significant difference is that all rights are regulated by the Civil Code, therefore, the employee must be aware that he or she does not apply to the privileges contained in the Labour Code, as it was in the case with the employment contract. Moreover, self-employed people have the opportunity to “put in the costs” expenses of conducting economic activity. Most often these are: internet subscription or a fuel for a car. Undoubtedly, the prospect of receiving much higher remuneration for work is tempting. However, it is worth keeping in mind that the employee has to make contributions and pay taxes. New duties do not necessarily have to be a nuisance because the employee has the opportunity to commission accounting by an external company. 

Before deciding on a form of employment, it is important to ask the key question: “Will it be profitable for me?” Statistically, the B2B form occurs in creative professions whose performers are interested in having the freedom in their time managament and work. In order to check whether it is also worthwhile for performers of other professions to conclude such an agreement, one might use the calculators which are available on the Internet. However, one must be aware of what the things which might be lost such as the right to free vacation, rest or sick leave. 

Is it possible to change the form of employment by staying with the current employer? 

Yes, it is. Most employers have a positive attitude towards changes in forms of employment in their corporate structures. For them this change i salso positive mainly because they are able to reduce the costs associated with fees and contributions, by reducing the staffing for the employee on self-employment. It is important to keep in mind that the employer does not then have to comply with the notice period which can facilitate the eventual decision to terminate the cooperation. 

In order to make the right decision, it is worth thoroughly analyzing one’s situation, estimating the costs or going for a consultation. Conversation with someone who has a B2B contract also will be beneficial.