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
Employers with <50 employees have until 31 January each year to formally notify staff that a Company Social Benefits Fund will not be created, and the holiday allowance will not be paid in order to be able to use such opt-out option.
The provisions of the so-called “Anti-Crisis Shield” introduce certain modifications regarding the functioning of the Company Social Benefits Fund during the pandemic, but they do not exempt employers from their information obligations.
The obligation to create a Company Social Benefits Fund (“CSBF”) applies, as a rule, to employers with at least 50 full-time employees (FTE) as of 1 January 2021. This does not mean that employers with lower levels of employment are automatically released from such obligation.
In order to avoid the obligation in 2021 to create a CSBF and holiday allowance payment, the employer:
(i) that employs <50 FTE as of 1 January 2021, and
(ii) 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 2021 in the customary manner.
Such information is binding only for 2021.
Failing to provide such information may result in employers being obliged to create a CSBF or pay the holiday allowance to employees who have taken 14 calendar days of uninterrupted holiday leave in 2021.
Failure to take one of the above actions results in the risk of:
- effective employee claims for the holiday allowance payment (with interest);
- fines, in some cases even up to PLN 30,000.
During the pandemic, some employers may suspend obligations related to the creation or functioning of the CSBF (e.g., payments of CSBF contributions or holiday allowance).
Such possibility will only be justified in the event of a decrease in economic turnover (15% or 25%), or a significant increase in the remuneration fund as defined in the “anti-crisis” regulations.
Bird & Bird supports clients in establishing CSBFs and provides day-to-day assistance in their management, as well as advises on issues related to the "anti-crisis" regulations. Please contact us with any questions you may have, we would be delighted to assist you.
