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      On 1 June 2025, the “Act on Conditions of Admissibility of Entrusting Foreigners with Work within the Territory of the Republic of Poland” (the “New Act”)1, entered into force, superseding the previously applicable “Act on Promotion of Employment and Labour Market Institutions” (the “Previous Act”)2.

      While the New Act retains many of the key principles from the previous legislation, such as free access to the labour market for certain groups of foreign nationals and the right to work under the terms of a valid work permit, it also introduces several important amendments.  These reflect evolving labour market conditions and new forms of employment.

      The New Act does not apply to all foreign nationals.  Exempt from its scope are, among others, sole entrepreneurs, members of diplomatic missions and consular offices, some volunteers and interns, as well as citizens of the European Union (EU) and European Free Trade Association (EFTA) member states, parties to the Agreement on the European Economic Area (EEA), and the United Kingdom of Great Britain and Northern Ireland.

      WHY THIS MATTERS

      In response to labour market dynamics and the need for more effective oversight, the Polish government introduced a new legal framework for engaging foreign nationals.  The New Act constitutes a part of a broader National Recovery and Resilience Plan supported by EU funding and is designed to modernise and tighten existing procedures.

      The New Act will affect the procedures pertaining to legalisation of work undertaken by foreign nationals in Poland, especially in terms of the employer’s obligations, examination of the applications by competent authorities, and permitted bases of employment, with the effect of tightening rules and practices, for instance, around contracts and pertaining to individuals coming in on a Schengen visa or under visa-waiver travel; also there is a new procedure for determining local labour market needs.

      Key Changes

      Permissible Bases for Legalisation of Residence and Employment and New Contracts Requirements

      The New Act introduces a comprehensive definition of “entrusting work” to foreign citizens in Poland, which

      encompasses, among others, the following forms of activity: 

      • employment under an employment contract, service relationship, or home-based work contract;

      • provision of work under civil law contracts;

      • serving in Poland as a member of the management board of a legal entity entered in the Polish Register of Entrepreneurs, if a foreign national stays in the territory of the Republic of Poland;

      • acting in Poland as a commercial proxy (prokurent) of an entrepreneur entered in the Polish Register of Entrepreneurs, if a foreign national stays in the territory of the Republic of Poland;

      • performing work in Poland as part of a posting arrangement (i.e., as a posted worker).

      Under the new legislation, entities assigning work to foreign citizens are now required to conclude contracts exclusively in writing and in a language comprehensible to the foreign citizen.  If the contract is drafted in a foreign language, the employer must make sure that it is translated into Polish by a sworn translator.  Regardless of the language the original employment contract was drawn up in, the translated version (either to Polish or to a language comprehensible to the foreign national) must be stored for two years following the end of the employment relationship (this is a new obligation – and the legislation requires both the original version and a translation to be kept – and failure to comply may result in a fine of up to PLN 30,000).

      One of the key limitations concerns foreign citizens entering Poland on the basis of a Schengen visa or as part of a visa-free travel.  These individuals are no longer eligible to obtain a work permit or a declaration on entrusting work.  As a result, they are effectively deprived of the possibility of legally taking up employment in Poland.

      In addition, all proceedings for obtaining the work permit or registering the declaration on entrusting a foreign citizen with work, including communication with the authorities, submitting documents, receiving administrative decisions and appealing them, will be conducted via an ICT system <praca.gov.pl>.

      KPMG INSIGHTS

      Despite lengthy discussions and several rounds of amendments, the New Act retains civil law contracts, including “B2B” agreements and “contracts of mandate,” as legitimate bases for hiring foreign citizens in Poland.  This is particularly important in practice, as around 70 percent of foreign workers are engaged under mandate or similar civil law agreements.4

      Labour Market Test Replaced by Protected Professionals Lists 

      Previously, as a general rule, employers intending to hire a foreign national were required to conduct the so-called labour market test.  It consisted of verifying whether the position to be occupied by a foreign national could be filled by hiring an unemployed Polish national registered with the Labour Office.  

      Under the New Act, this requirement has been abolished.  Instead, the district governor (starosta) is now empowered to issue a list of professions and types of work for which work permits for foreign citizens will be refused, based on the current situation in the local labour market. 

      KPMG INSIGHTS

      This solution removes an outdated procedure with little practical relevance and introduces a more flexible, region-specific approach.  However, the new rules may restrict employers’ ability to hire foreign citizens in certain regulated professions, potentially impacting workforce availability and the fulfillment of business objectives in some sectors.

      Facilitating Access to Poland’s Labour Market and Hiring of Foreign Citizens

      The New Act introduces a dual approach: on one hand, it simplifies access to the Polish labour market for foreign citizens; on the other, it strengthens safeguards to prevent abuse in the hiring process.

      Easier Access for Foreign Workers

      Stronger Compliance and Oversight

      Stricter Sanctions for Abuse

      • Simplified procedures for obtaining work permits and submitting declarations of employment and remuneration
      • Full digitalisation of employment legalisation processes

      • Integration programmes for foreign nationals, including support in learning Polish
      • Clearer rules to protect foreign workers’ rights and foster fair employment conditions

      • Mandatory refusal of work permits for entities misusing the system (e.g., operating primarily to facilitate entry of third-country nationals)

      • Stricter inspections by the Border Guard and National Labour Inspectorate

      • New obligations for employers to inform foreign workers about their rights and unionisation options
      • Proportional fines reflecting the number of illegally-employed individuals

      • Restrictions on outsourcing disguised as employment

      • Additional conditions for newly-established companies or those using virtual offices

      Source: KPMG in Poland

      KPMG INSIGHTS

      Pursuant to the New Act, all proceedings for work permits or declarations on assignment of work to a foreign national initiated before the New Act’s entry into force and not concluded with a final decision before the said date, are subject to the provisions of the Previous Act.

      Going forward, employers and foreign nationals must familiarise themselves with the updated procedures, including new documentation requirements.  Entities hiring foreign nationals must also create an individual account on <praca.gov.pl>, which will serve as an official platform for communication with the authorities.

      FOOTNOTES:

      1  “Act of 20 March 2025 on the conditions of admissibility of providing work to foreigners within the territory of the Republic of Poland” (Ustawa z dnia 20 marca 2025 r. o warunkach dopuszczalności powierzania pracy cudzoziemcom na terytorium Rzeczypospolitej Polskiej) at: https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU20250000621.

      2  “Act of 20 April 2004 on the Promotion of Employment and Labour Market Institutions” (Ustawa z dnia 20 kwietnia 2004 r. o promocji zatrudnienia i instytucjach rynku pracy) at:  https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU20040991001.

      3  "Act of 20 March 2025 on the Labour Market and Employment Services” (Ustawa z dnia 20 marca 2025 r. o rynku pracy i służbach zatrudnienia) at: https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU20250000620.

      4  Explanatory Statement to the Draft of the “Act on the conditions of admissibility of providing work to foreigners within the territory of the Republic of Poland of 6 December 2024” (Uzasadnienie do projektu ustawy o warunkach dopuszczalności powierzania pracy cudzoziemcom na terytorium Rzeczypospolitej Polskiej z dnia 6 grudnia 2024) at: https://www.sejm.gov.pl/Sejm10.nsf/druk.xsp?nr=949.

      Contacts

      Wojciech Kwiatkowski
      Wojciech Kwiatkowski

      Associate Director

      KPMG in Poland

      Anna Panek
      Anna Panek

      Associate

      KPMG in Poland

      Antonina Zemska
      Antonina Zemska

      Junior Associate

      KPMG in Poland

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      * Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.

      The information contained in this newsletter was submitted by the KPMG International member firm in Poland.

      GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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