Illegal employment of foreigners with multiple sanctions

In 2023, the National Labour Inspectorate (PIP) recorded a significant increase in cases of illegal employment of foreigners. This is a dangerous phenomenon for both employers and foreign workers, which comes with multiple sanctions. What penalties face entities that illegally employ foreigners, what are the regulations for employing foreigners in Poland, and what measures should be taken to ensure that foreign nationals work legally within the company?

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Employment of foreigners in Poland – permits, exemptions, regulations

The Act on Employment Promotion and Labour Market Institutions and the Act on Foreigners regulate the legal employment of foreigners in Poland. Under EU regulations, citizens of EU member states have the right to move freely within the EU and to take up employment in any member state without requiring special permits.

Foreigners who are exempt from the requirement to obtain a work permit are:

• Citizens of EU countries
• Citizens of European Economic Area (EEA) countries or Switzerland
• Citizens of non-EEA countries who benefit from the freedom of movement.

Foreigners also exempt from the need for a work permit include those who are the spouse of a Polish citizen or a foreigner who holds a temporary residence permit in Poland, granted due to marriage. People who hold a valid Polish Card (Karta Polaka) are also exempt.

Other foreigners can also take up employment in Poland, but the following conditions must be met:

• The employer must obtain a work permit for the foreigner
• The foreigner must have legal residence in Poland
• The work performed by the foreigner must be in line with the specifications of the work permit.

A work permit is issued based on an application submitted by the entity assigning work to the foreigner. To work in Poland, a “C” type visa or a national “D” type visa is required and not, for example, a tourist visa marked “01”.

In summary, under Article 87 of the Act on Employment Promotion and Labour Market Institutions, foreigners are authorised to work in Poland if:

• They have been granted refugee status in Poland
• They have been granted subsidiary protection in Poland
• They hold a permanent residence permit in Poland
• They have a long-term EU resident permit in Poland
• They have been granted residence for humanitarian reasons or a permit for tolerated stay
• They benefit from temporary protection in the Republic of Poland.

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Illegal employment of foreigners in Poland – common mistakes and violations

The problem of illegal employment of foreigners in Poland is becoming increasingly widespread, as confirmed by the data from the National Labour Inspectorate. In 2023 alone, PIP conducted over 9,000 inspections regarding the legality of employment, which showed that nearly 7,000 immigrants were working illegally. This is approximately 1,800 more people than in 2022 (then 5,200 people). Ukrainians represent the most frequently illegally employed group of people.

The most common violation in employing foreigners is the lack of a required work permit or the situation when foreigners work in violation of the conditions specified in the work permit or the declaration on the entrusted work.

For Ukrainian citizens, common problems include the failure to notify the Labour Office (PUP) within seven days from the employment date (as of 1 July 2024, previously 14 days), as well as Ukrainians working under different hours or for lower wages than specified in the notification.

Other common violations with the employment of foreigners in Poland include:

• Non-payment or incorrect payment of wages
• Incompatibility of the application of civil law contracts with the terms and conditions of work
• Failure to comply with technical safety regulations for foreign workers
• Failure to register or untimely registration of foreigners for social security.

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Illegal employment of foreigners – consequences and sanctions

The Act on Employment Promotion and Labour Market Institutions contains provisions on the consequences of illegal employment, i.e. a foreigner works without the appropriate authorisation or work permit, and is not exempt from the obligation to have one. These consequences also apply to situations in which a foreigner works under different conditions or for different wages than specified in the work permit.

An entity that assigns illegal work to a foreigner faces a fine ranging from 1,000 PLN to 30,000 PLN. The fine applies not only to the employer but also to the foreigner who takes up illegal employment. In addition, in exceptional cases, the foreigner may be ordered to leave Poland. Employers found guilty of illegal employment may also face difficulties in obtaining future work permits or declarations to employ foreigners.

A fine is also imposed for receiving financial benefits from a foreigner in exchange for assistance in obtaining a work permit or another document authorising employment in Poland – the fine ranges from 3,000 PLN to 30,000 PLN.

Furthermore, the Criminal Code also stipulates a penalty of imprisonment from three months to five years for anyone who enables or facilitates the illegal stay of foreigners in Poland to gain financial or personal benefit. This also applies to situations in which illegal work is entrusted to a foreigner without a permit.

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Illegal employment of foreigners in Poland – penalties set to increase

Penalties for illegal employment of foreigners are set to become even stricter. Legislative work is currently underway on a draft law regulating the conditions for employing foreigners in Poland. It proposes increased fines proportional to the number of illegally employed foreigners.

The draft also provides for additional obligations for employers, such as the requirement to employ foreigners under employment contracts (civil law contracts would only apply to foreigners exempt from needing a work permit, such as EU citizens) or submitting a copy of the contract to the authorities, with non-compliance leading to refusal of future work permits for foreigners. This is aimed at further protecting foreign workers in Poland.

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Employing foreigners in Poland – take advantage of our support

Employing foreigners in Poland requires careful adherence to legal and accounting procedures. Our experts can guide you through this process and ensure compliance with all legal regulations. We handle all official matters related to employing foreigners, provide assistance in obtaining necessary permits, and manage accounting, social security contributions, and interactions with authorities, also in the case of inspections.

By working with us, you can be sure that the employment of foreigners is fully legal and compliant with all laws and standards.

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Legal Basis:

• Act of 20 April 2004 on Employment Promotion and Labour Market Institutions (Dz.U. 2023735 as of 19 April 2023);
• Act of 12 December 2013 on Foreigners (Dz.U.2024.769 consolidated text);
• Criminal Code of 6 June 1997 (Dz.U. 2022.1138 as of 30 May 2022)

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If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

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