Draft amendments to the Labour Code concerning working time flexibility

Two draft amendments to the Labour Code (one submitted by the cabinet and the other by the governing party's Members of Parliament) have passed the first reading in the Polish Parliament. They allow for an employers' right to extend the working time settlement period up to 12 months (at present, a maximum of 4 months) which, however, will require the consent of the trade unions or employee representatives. According to the cabinet's bill, an employer will have the right (upon the employee representatives' consent) to introduce so-called "flextime" (the different hours at which employees would start working on particular days will be specified in advance; or, within established limits, employees will decide themselves at what time they will start work). It follows from the bill, that starting work at different times on consecutive days will not be deemed to constitute overtime work (at present, a view to the contrary prevails). Flextime could be also introduced upon an employee's request. The MPs' draft provides for the reduction of overtime allowances from 100% to 80% and from 50% to 30% of remuneration.

Both bills address vital demands of the business community. Most of the solutions proposed in the MPs' bill have been criticised by the Chief Labour Inspector but praised by representatives of employers' organisations.

Supreme Court resolution - deduction of the employer's receivables from damages due to the employee

In the resolution of 17th January 2013 (II PZP 4/12) the Supreme Court has allowed the unlimited deduction of receivables from damages due to an employee in the case of the employee's termination of the employment agreement (adjudicated in court proceedings). Pursuant to the Court's decision, such deductions are not subject to the material limitations stemming from the Labour Code (which are normally applicable to salary withholdings). In the aforesaid resolution, the Supreme Court has departed from prevailing case law, based on which the respective limitations are also applicable in the case of deductions from such damages. The resolution in question will certainly affect future case law, in particular, owing to the fact that it has been adopted by an enlarged bench of 7 judges. The Supreme Court also confirmed the view presented in its earlier judgments pursuant to which long-service bonuses, retirement and disability severance as well as the statutory severance payable in the case of workforce reduction are protected from the deduction, which means that employers may make deductions from the aforementioned benefits only in compliance with the principles laid down in art. 87-91 of the Labour Code.

Social security report - verification of medical certificates

The Social Security Agency (ZUS) has published information on the results of the verification of medical decisions on temporary inability to work as well as of the compliance of the employees with medical certificates in 2012. In 2012, the Agency carried out almost 465 thousand medical examinations of people on sick leave which resulted in almost 46 thousand decisions being issued suspending further payments of sick leave allowances. Moreover, in 2012, the Agency carried out inspections of almost 160 thousand insured people to check whether they complied with their medical certificates. As a result, over 5 thousand people had their sick leave allowance taken away.

Pursuant to the applicable provisions of law, every employer may apply to the Social Security Agency to inspect the correctness of a medical decision allowing a worker to take temporary sick leave due to a sickness. In addition, employers with a headcount exceeding 20 are entitled to independently inspect employees as regards their compliance with their medical certificates.

State Labour Inspectorate's Operations Program for the years 2013-2015

The State Labour Inspectorate has announced which issues it intends to focus on in the course of its preventive and controlling operations to be carried out in the years 2013-2015. The issues in question include but are not limited to: the execution of civil law agreements made under conditions which indicate the existence of an employment relationship and/or failure to adhere to the restrictions regarding the application of fixed-term employment agreements.

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