As of 1 January 2021 also the smallest employers are obliged to establish PPKs.
On 1 January 2021, the fourth and final phase of implementing Employee Capital Plans (“PPKs”) began, covering employers with headcount (employees and some non-B2B contractors) below 20 (as of 31 December 2019) . Under the Act on Employee Capital Plans (the “Act”), these entities should, by no later than:
Signing the above-mentioned agreements should be preceded by consultations to select a financial institution with which the PPK management agreement will be concluded, with the employees’ representatives appointed for this purpose, or with the company trade union organisation, if one has been established in the workplace.
Failure to comply with the obligation to establish a PPK could be subject to fines, including a fine in amount of up to 1,5% of the remuneration fund t or a fine of between PLN 1,000 and PLN one million depending on the violations.
It is compulsory for the employing entity to establish a PPK, while enrolment to a PPK by an employed person is voluntary. The right to join a PPK is granted to employees, as well as to other persons for whom the employer pays obligatory social insurance contributions (e.g., persons on mandate contracts).
Establishing a PPK is not compulsory in the following cases:
In addition, the employer whose registered office is not located in Poland may conclude a written agreement with the employed person that their PPK-related obligations will be fulfilled on their behalf by the employed person during the period of his or her employment with the employer.
Bird & Bird supports clients in preparing and creating PPKs, and provides ongoing support in their operation.
Sep 22 2023
Sep 22 2023