With the creation of the Schengen Area, many people became interested in moving to other European Union countries, not only for housing but also for work purposes. In response to this, a significant number of companies have introduced the possibility of a work model where the employee is a representative of the company and provides services abroad. Entrepreneurs often want to expand the group of their employees with professionals who are available in another country. 

Based on the European Pillar of Social Rights, published in 2017, the EU promotes fair employment conditions for people working abroad, and on their website the detailed information about the rights and restrictions applicable to employees as well as the forms of posting an employee to work abroad might be found. 

A foreigner working in Poland 

A significant facilitation is the employment of an employee with the citizenship of one of the European Union member states, who can start working without the need to present a work permit. Member countries use the so-called freedom of movement of workers which provides the following privileges that allow: 

• to look for employment in Poland; 

• to start working in Poland without a work permit; 

• to reside in Poland; 

• to remain in Poland also after the expiry of the employment contract; 

• to equal treatment with other Polish citizens in terms of working conditions and social and tax privileges. 

It is worth analyzing the obligations related to employing a foreign employee. For the employer, a number of activities are identical to those in the case of employing a Polish person, however, the foreigner is obliged to report to the Provincial Office his/her stay in the territory of Poland, which will exceed the permitted 3 months. The employer is obliged to comply with the provisions regarding each type of contract in the same way as for a Polish citizen. This sould be understood as the application of the provisions of the Labor Code in contracts (in the case of an employment contract); or the Civil Code (in the case of a civil law contract). 

It is important to check the following things before employing a foreigner: 

• demand presentation of a valid document entitling you to stay in Poland; 

• ask to see a document specifying the residence title (it entitles you to work in Poland); 

• a copy of the residence permit must be made and kept in the company’s files. 

For owners of foreign companies who would like to have their employees employed in Poland, e.g. those who work remotely, a favorable form of employment called EwE (Employment without establishment) has been established. This applies to the CEE countries, which include: Bulgaria. Croatia. Czech Republic, Estonia, Lithuania, Latvia, Poland, Romania, Slovakia, Slovenia and Hungary. In these countries, it is possible to employ a foreigner without the need to establish a business there and without establishing legal personality. 

The biggest advantage of this solution is the lack of obligation to establish a branch, representative office or subsidiary, and thus the elimination of costs related to accounting, legal and administrative services. The only remaining obligation is to register with the  institutions responsible for social security and the tax office (related to the payroll). 

When using this type of solution, remember that obligations towards employees must be at least at the level provided for in the labor code of a given country. 

What are the benefits of the EwE solution? 

• the employer will save costs related to opening a limited liability company or subletting an address and renting office space. 

• faster market acquisition due to better awareness thanks to the presence of local employees; 

• cooperation gains experience with the market of a given country before opening a business there; 

• in the case of EwE, no additional costs related to fees for accounting services are required. 

In Poland many companies provide services aimed at helping foreign companies planning to enter the Polish market or employ an employee. It concerns, among others, calculating remuneration for work, settling working time records and supporting the correct settlement of  PIT. This is a particular convenience that significantly speeds up the entire process and gives the employer confidence that all HR and accounting matters in Poland are settled properly.