Employee Outsourcing in Poland vs. Temporary Work – Key Differences and Legal Implications

Introduction

Employee outsourcing and temporary work are two popular forms of workforce management that allow businesses to maintain flexibility in human resource allocation. While both methods involve utilizing workers employed by external entities, they differ significantly in terms of legal regulations and practical application. This article explores these differences and outlines the legal consequences associated with each approach.

Temporary Work in Poland – Legal Framework and Definition

To enable businesses to utilize external employees, lawmakers introduced regulations governing temporary work in Poland. These regulations are specified in the Act on Employment Promotion and Labor Market Institutions and the Act on the Employment of Temporary Workers. Under these laws, temporary work involves employing workers through a temporary employment agency and assigning them to perform tasks under the direction and supervision of the user employer.

According to statutory definitions, temporary work applies to tasks that are:

1. Seasonal, periodic, or ad hoc in nature.
2. Impossible to complete on time by the user employer’s permanent employees.
3. Normally performed by an absent employee of the user employer.

A key feature of temporary work is the direct supervision and control exercised by the user employer. This means that temporary employees function within the company’s structure like regular employees, but they are formally employed by a temporary employment agency.

What is Outsourcing?

Employee outsourcing in Poland is a different work organization model that involves transferring specific business processes or functions to an external entity. Polish law does not provide a clear legal definition of outsourcing, but case law and academic literature describe it as the delegation of certain functions to an external company for execution.

A fundamental characteristic of outsourcing is that the entity contracting the service (insourcer) does not oversee how the outsourced service provider (outsourcer) performs the work. The insourcer is concerned only with the final result of the service, not the way it is carried out. Examples of outsourcing services include accounting, IT, logistics, cleaning, and catering.

Differences Between Outsourcing and Temporary Work in Poland

1. Employee Supervision

1. In temporary work, employees remain under the supervision and direction of the user employer.
2. In outsourcing, the outsourcer organizes work independently and is responsible for service delivery.
3. Employment Relationship

2. In temporary work in Poland, employees are hired by a temporary employment agency.
3. In outsourcing, workers are employed by the outsourcing company and are not formally subject to the contracting company.
4. Legal Regulations

3. Temporary work is strictly regulated by law, specifying maximum employment periods and obligations of involved parties.
4. Specialist outsourcing in Poland is based primarily on the Civil Code provisions regarding service contracts.

Misuse of Outsourcing as a Substitute for Temporary Work in Poland

Inspections have shown that an increasing number of companies attempt to circumvent temporary work regulations by using employee outsourcing. In reality, this often leads to situations where outsourcing mimics temporary work without meeting the legal obligations associated with it.

Example of Misuse

Labor inspectors conducted an inspection at Company “A,” which had delegated employees to Company “B.” In practice, these workers were fully supervised by Company “B” and worked alongside its regular employees. Consequently, the inspectors concluded that the arrangement constituted illegal temporary work and that Company “A” was operating without the required registration as a temporary employment agency.

As a result, Company “A” representatives were penalized under Article 121(1)(2) of the Act on Employment Promotion and Labor Market Institutions. This provision imposes fines ranging from PLN 3,000 to PLN 100,000 for providing temporary work services without proper registration as a temporary employment agency.

Conclusions and Recommendations

Employee outsourcing in Poland and temporary work are distinct workforce management strategies, and their improper application can lead to serious legal consequences. Employers should consider the following aspects:

• Choosing the right cooperation model – If workers are to be directly supervised by the company, temporary work should be used.
• Well-defined contracts – Outsourcing agreements should clearly outline the scope of the outsourcer’s responsibilities to avoid allegations of bypassing temporary work regulations.
• Registering business activities – If a company intends to provide temporary work services, it must obtain registration as a temporary employment agency (KRAZ).

In summary, specialist outsourcing can be an effective tool for process optimization if used in compliance with the law. Employers should avoid using workforce outsourcing as a loophole to evade temporary work regulations, as this may result in severe legal and financial consequences.

Source: State Labor Inspectorate – OlsztynWant peace of mind? Let Berry HR take care of it.