In Poland, layoffs are known as redundancies. These occur when the employment contract is terminated for reasons that are unrelated to the employee. For example, bankruptcy, economic, organizational, or employment reduction. Individuals may also be made redundant, but the reason must be one of the above and not the employee's performance or conduct.
The act covering redundancies, whether collective or individual, applies only to employers with at least 20 employees. If there are fewer than 20, the employees may be dismissed on general terms. Employers must follow certain procedures and criteria when carrying out redundancies. For example, in the case of large redundancies, the employer should notify the local Labor Office. Consultations are also required with any relevant trade unions.
Collective redundancy covers a period of 30 days and is based on the number of workers the business employs (minimum 20):
- 10 employees where there are fewer than 100 workers
- 10% of employees where there are 100 but fewer than 300 workers
- 30 employees where there are at least 300 workers
An individual redundancy is not considered to be a collective redundancy (not enough employees).
There are a number of restrictions on collective redundancies for certain categories of employees. These include pre-retirement age employees, pregnant employees, those on maternity leave, and more. These restrictions do not apply in the case of bankruptcy or liquidation.
Severance payments for collective and individual redundancies depend on the length of service.
- One month’s salary (minimum remuneration or more) if employed for less than 2 years
- Two months’ salary if employed between two and eight years
- Three months’ salary if employed for more than eight years
The maximum amount of severance can not be more than 15 times the minimum wage applicable.