Revolutionary changes to the Labour Code from 2027 - what you need to know
The Sejm is preparing to consider a private member's bill on the minimum wage (print no. 1811), which proposes some of the most significant changes to the Labour Code in years. The first reading of the bill is scheduled for 27 May 2025, and the new rules are due to enter into force on 1 January 2027.
The proposed regulations aim to significantly strengthen employee protection with regard to receiving salaries on time. Employers must prepare for tougher financial consequences for breaching their basic obligations towards employees, including the automatic accrual of interest for each day of delay in paying salary.
The changes will cover both an amendment to the Labour Code and the introduction of a new act on the minimum wage, which will replace the current provisions dating from 2002. Below, we discuss the most important aspects of the planned reforms, which will affect both employees and employers.
Automatic interest on late salary payments - new Article 85¹ of the Labour Code
The key change for millions of employees in Poland will be the introduction of a new Article 85¹ into the Labour Code. This provision stipulates that if payment of salary is delayed, the employee automatically acquires the right to interest for the period of delay. This is a fundamental change in the existing approach to protecting employee rights.
Crucially from a practical point of view, the employee will not need to submit any request or prove any loss suffered. Interest will be calculated by the employer of its own motion, starting from the day following the salary payment deadline. This means that the obligation to calculate and pay it rests solely with the employer.
Interest is to be paid together with the overdue salary, which removes the need for the employee to bring separate proceedings to recover it. This mechanism is to apply even where the delay resulted from circumstances for which the employer is not directly responsible. The solution is modelled on the civil-law construct of statutory interest, but adapted to the specific nature of employment law.
Practical significance of the changes for employees and employers
Until now, recovering interest for late payment of salary required the employee to take action - most often by taking the matter to the labour court. The new rules completely reverse this logic, shifting the burden of calculating and paying interest onto the employer. For employers, this means having to implement appropriate mechanisms in their HR and payroll systems that will automatically calculate interest in the event of any delay.
Severe penalties for non-payment of salary - fines of up to PLN 60,000 and restriction of liberty
The bill introduces a new Article 282 § 4 of the Labour Code, which penalises as a separate offence the situation where an employer, or a person acting on its behalf, fails to pay salary for a period of at least three months. Such conduct will be punishable by:
- a fine of between PLN 5,000 and PLN 60,000,
- or a penalty of restriction of liberty.
The authors of the bill justify introducing this provision by the higher degree of social harm caused by failing to pay salary for several months compared with a one-off delay. The existing rules did not distinguish so clearly the situation of systematic breach of the obligation to pay salary.
At the same time, the bill provides for an increase in general fines for breaches of basic employee rights. Currently, these penalties range from PLN 1,000 to PLN 30,000. Once the new rules enter into force, the range of fines will increase to between PLN 2,000 and PLN 60,000. This applies, among others, to breaches such as:
- failure to pay salary on time,
- unjustified reduction of pay,
- failure to grant annual leave,
- failure to issue a certificate of employment on time,
- breaches of health and safety at work regulations.
The end of topping up the minimum wage with bonuses and allowances
An equally important change is the new approach to calculating the minimum wage. The bill provides that from 2027, when determining whether an employee receives at least the minimum wage, bonuses, awards, function allowances and other pay supplements may not be taken into account.
In practice, this means an end to the previously widespread practice of setting a low basic salary and topping it up to the statutory minimum with various additional components. Employers will have to ensure that the basic salary alone reaches the level of the minimum wage.
The bill retains the existing mechanism of annually negotiating the level of the minimum wage within the Social Dialogue Council. The government presents a proposal by 15 June each year, and if the social partners fail to reach agreement, the final amount is set by the Council of Ministers by regulation. The rule that the minimum wage must rise by at least the forecast rate of inflation is also retained, as is the option of two increases within a year where forecast inflation exceeds 105%.
How to prepare for the new rules - the role of professional legal advice
The planned changes to employment law present employers with a number of organisational and financial challenges. It will be necessary not only to adapt pay regulations and employment contracts, but also to update HR and payroll systems to calculate interest automatically for delays in paying salaries.
Employees, in turn, should know that the new rules significantly strengthen their position in relations with their employer. Automatic interest on late salary, tougher penalties for breaches of employee rights and clear rules for calculating the minimum wage are real protection tools that are worth knowing how to use.
Both employers planning to adapt their procedures to the new requirements and employees whose rights are being breached can benefit from professional legal assistance. Proper preparation for the upcoming changes will help avoid costly mistakes and court disputes.
Do you need help interpreting the new Labour Code rules, or do you want to protect your company's interests ahead of the changes in 2027? Contact our firm - our employment law specialists will help you prepare for the upcoming regulations and ensure your business is fully compliant with the new legal requirements.
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