Major Changes - Poland's Labor Market Gets a Makeover: What the New 2025 Act Means for You!
Get ready for a significant shift in Poland's employment landscape! A comprehensive new "Act on the Labour Market and Labour Market Institutions," dated March 20, 2025, is set to modernize how Poland supports job seekers, promotes employment, and regulates its labor market. This landmark legislation, which repeals the previous 2004 Act, aims to foster full and productive employment, develop human resources, strengthen social integration, and increase labor market mobility. Whether you're looking for a job, an employer, or just interested in labor dynamics, these changes are worth noting.
Key Highlights of the New Labor Market Act:
1. Fresh Definitions, Clearer Roles:
The Act introduces updated definitions for key terms like "unemployed", "long-term unemployed", "job seeker", and "employer". It also clarifies the state's tasks in promoting professional activity and supporting employment, which are implemented by public employment services, Ochotnicze Hufce Pracy (OHP), employment agencies, and other designated institutions.
2. Enhanced Support Mechanisms:
Public Employment Services (Powiatowy Urząd Pracy - PUP, and Wojewódzki Urząd Pracy - WUP) and OHP are at the forefront of implementing the new policies. The Act outlines various forms of assistance, including:
Job intermediation and career counseling.
Training programs: Including financing for training chosen by the job seeker or ordered by the local староста (county head) based on labor market needs or employer requests. This also covers the costs of validating skills and obtaining qualification documents.
Internships (Staż): Redefined as acquiring knowledge and skills by performing tasks in the workplace without establishing an employment relationship, typically lasting 3 to 6 months (or up to 12 months in specific cases).
Support for Entrepreneurship: The Act continues to provide for one-time grants for unemployed individuals, graduates of social integration centers, and non-working carers of disabled persons to start a business, up to 6 times the average salary. It also introduces provisions for loans for starting a business or creating a job.
National Training Fund (KFS): This fund will continue to support employers investing in the continuous education of their workforce, with priorities set annually.
3. Focus on Specific Groups:
The Act prioritizes support for various groups facing challenges in the labor market, including:
Individuals under 30 years of age.
The long-term unemployed.
Individuals over 50 years of age.
People with disabilities.
Parents returning to the labor market after childcare breaks and carers of dependent persons.
4. Digitalization and Individual Accounts:
A significant step towards modernization is the introduction of individual online accounts for job seekers, employers, and other entities. These accounts, accessible via a dedicated IT system, will facilitate registration, applications for support, and communication with employment offices. This aims to streamline processes and make services more accessible.
5. Regulating Employment Agencies:
The Act lays down detailed rules for the operation of employment agencies, including those involved in temporary work and international job placement. It specifies requirements for registration, obligations towards job seekers (e.g., no charging fees from individuals for job placement, with some exceptions for costs related to working abroad ), and cooperation with public employment services.
6. Emphasis on Equal Treatment:
The Act strongly emphasizes the principles of equal treatment and non-discrimination in access to and use of the support offered, irrespective of gender, age, race, ethnic origin, nationality, religion, worldview, disability, or sexual orientation.
7. For Foreign Nationals:
The Act applies to various categories of foreigners seeking or undertaking employment in Poland, including EU/EEA citizens, those with specific residence permits (e.g., permanent residence, EU long-term resident, Blue Card holders – Art. 127, Art. 137a of the Act on Foreigners), refugees, and those under temporary protection.
Important Considerations:
Transitional Provisions: For procedures initiated and not concluded before the new Act comes into force, the previous regulations will generally apply. Specific rules apply to unemployment benefits granted earlier, which will be paid out according to the old rules but are subject to new valorization mechanisms.
Entry into Force: The Act is set to enter into force on the first day of the month following 14 days from its announcement, with some specific articles having different effective dates.
The Road Ahead:
This new legislation represents a significant effort to adapt Poland's labor market framework to contemporary challenges and EU standards. By modernizing definitions, enhancing support systems, embracing digitalization, and reinforcing principles of equal opportunity, the Act aims to create a more dynamic, inclusive, and efficient labor market.
Want to learn more about how these changes could impact you or your business? The details are extensive, and understanding the nuances is key. We encourage you to reach out for more in-depth information or professional guidance to navigate this new legal landscape effectively. This is your opportunity to get ahead and understand the future of work in Poland!