The Ministry of Labour and Social Policy has announced the assumptions for a draft amendment to the Labour Code regarding the calculation of seniority. Currently, seniority includes mainly employment based on an employment relationship. This causes, for example, unequal treatment of current employees who previously worked with a company on B2B or mandate agreement basis. They have lower severance pay, a shorter notice period or less vacation time than employees who already had an employment contract at the same time. The same may also apply to other entitlements (allowances, bonuses) granted precisely on the basis of seniority. 

This is now to change, and periods of self-employment and cooperation under civil law contracts (with the exception of work product agreements), among others, will also be counted as part of the period of employment. The new regulations are to apply "retroactively," so to speak - and thus take into account the employee's entire career to date. Confirmation of the aforementioned periods is to be provided by a certificate issued by the Social Security Institution (ZUS). Seniority will also include certain periods when the employee is not subject to social security stipulated by special regulations, such as service agreements entered into by secondary school students or students up to the age of 26.

HR/People & Culture departments should prepare for the planned changes. If we know that there are employees who previously worked with us on the basis of civil-law contracts, it is worth calculating in advance how the cost of employing them (seniority allowances) will increase, and prepare for this from the organizational side. It will be good practice when the new regulations come into effect to inform employees that their seniority has automatically increased and what the practical implications of this are (vacation/termination notice period, etc.). 

The changes will also increase the pool of available candidates for senior positions in the public sector. This is because a certain length of service is often the statutory requirement for employment. 

The bill is expected to be approved in Q3 2024.
 

Find more in the PRO HR June 2024