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Temporary Employement Act amendment - finally signed by President!

On 17 December 2009 the President of the Republic of Poland signed the amendment to the Act on Employing Temporary Employees (Ustawa o zatrudnieniu pracowników tymczasowych). This piece of legislation, streamlining the procedures of hiring temporary employees and facilitating operations of temporary employment agencies, is to enter into force after 30 days from its promulgation in the Polish Official Journal.

The amendment, drafted by the employment market sub-committee of the Sejm Social Policy and Family Committee, introduces the three long-announced changes:

• A single employer may now employ a temporary employee for the period of 18 months, as compared with 12 months under previous regulation;
• By deleting article 3 of the Act the lawmakers abolished the prohibition to hire temporary employees imposed on the companies which conducted mass layoffs during the preceding six months;
• The amendment introduces the possibility to issue employment certificates cumulatively (after 12 months of work) or upon request of a temporary employee.

Maurice Delbar, President of the Management Board, employment and personnel counselling company Start People, comments on the amendment:

The amendment to the Act on Employing Temporary Employees becoming effective is the beginning of the positive transformation on the Polish labour market which will significantly contribute to its development and activate the unemployed. The new regulations fundamentally change the way in which the temporary employment market functions. For many temporary employees, extension of the permitted period of employment with an individual employer will increase comfort and security of their employment. At the same time, employers will be able to improve efficacy of their businesses.

Abolishing the ban on hiring temporary employees by the companies which conducted mass layoffs during the preceding six months, regardless of the nature and location of the positions covered by the layoff scheme, will enable many businesses to smoothly regain their productive capacities. In yet unstable economic environment increased flexibility of employment and its ability to adjust to the needs of the market and demand will have a stimulating effect on the Polish economy.

From the perspective of our industry, the major impact will be that brought about by the changes limiting the red tape resulting in more effective hiring of temporary employees in cooperation with the Agency’s customers. So far, we had to issue employment certificates to employees upon each concluded contract. Consequently, an employee often got ten or fifteen documents which increased the employment costs.

Polish labour market is now on the verge of the breakthrough – the latest reports on economic growth and stabilising unemployment rate bring optimism but signs of the end of the downturn are yet to be seen. Therefore, it's so important to maximally use the potential of such a flexible form of employment as temporary work. Introduction of this amendment will remove the main legal barriers to labour market development and its adaptation to economic reality.