Poland: By the end of January, employers must inform staff that a CSBF will not be created and the holiday allowances will not be paid

By Karolina Stawicka, Paulina Grotkowska


By 31 January 2020, employers with <50 employees must formally inform staff that Social Benefits Funds will not be created and the holiday allowance will not be paid in order to be able to use such opt-out option.

The obligation to create a Company Social Benefits Fund (CSBF) applies to employers with at least 50 full-time employees (FTE) as of 1 January 2020. This does not mean that employers with lower levels of employment are automatically released from such obligation.

In order to avoid the obligation in 2020 to create a CSBF and holiday allowance payment, the employer that employs <50 FTE as of 1 January 2020, is not covered by a Collective Bargain Agreement, or Remuneration Regulations must:

• take a formal decision in this respect (e.g., as a resolution or an announcement); and
• provide employees with information on this by 31 January 2020 in the usual manner.

Such information is binding only for 2020.

Failure to provide such information results in the obligation to create a CSBF or at least to pay the holiday allowance to employees who have taken 14 calendar days of uninterrupted holiday leave in 2020. Failure to take one of the above actions results in the risk of:

• effective employee claims for the holiday allowance payment with interest
• fines up to PLN 30,000 for violation of basic employee rights.

Bird & Bird supports clients in establishing CSBFs, and provides day-to-day assistance in their management.