It is worth noting that in Poland there are three types of employment agreements: Umowa o prace, Umoza zlecenia, Umowa o dzieło. Today we will talk about the last one.
Umowa o dzieło or contract for work in Poland is one of the simplest and most common legal forms. What is its essence:
- The person accepting the order undertakes to perform a specific work.
- The client undertakes to pay remuneration.
As is customary in jurisprudence, there are enough nuances – we will tell you about them! If there are any questions, do not hesitate to ask for advice – we will be happy to help and sort out your situation.
Contract for work in Poland
The subject of such a contract can be: writing a journalistic article, script, program, book; creating a website, making a sculpture or piece of furniture, photography or painting a picture, etc. The range of possibilities is very wide.
The client must declare a specific remuneration for the result. It may take the form of a lump sum (lump sum payment) or an estimated remuneration.
The performance contract in Poland is advantageous because the client does not have to pay insurance premiums – the contractor is not covered by social and health insurance. What is important is that the contractor for a specific task can be contracted to his own employer, but then he is subject to the obligation of social security. The exception is situations where the employer contracts with his employee on leave:
- maternity leave,
- parental leave,
- unpaid leave.
What is specified in the contract?
The parties must necessarily specify:
- who is contracting it and what is to be created as a result,
- how the customer will receive and use the result,
- terms of regulation and termination.
The period of performance can be any, but specific. The contract is not concluded for an indefinite period – this would mean that the contractor can perform indefinitely.
Depending on the needs of the parties and the subject matter of the agreement, the arrangement may sound different. Both parties must be defined in the agreement in a way that does not raise doubts about legal personality (the ability of a person to have rights and exercise legal duties, by himself or through representatives).
In the case of a company, the following must be specified:
- Full name and address,
- NIP (10-digit taxpayer identification number),
- KRS number (company number in the National Court Register).
In the case of an individual:
- First and last name,
- PESEL (Personal Identification Number in 11 digits),
- address of residence.
Contract for work in Poland: payment and taxes
Usually the agreement is prepared by the customer and sent to the contractor. The executed and signed document should be archived. After the completion of the work, the contractor opens an invoice and sends its number with the gross amount to the customer. The latter pays the advance tax.
- If the amount of the contract does not exceed 200 PLN gross, the so-called lump sum tax applies. Then tax at the rate of 18% is deducted excluding expenses.
- In commitments over 200 PLN gross, the advance income tax payment is 18%. If your annual income exceeds PLN 85,528 it is 32%.
In a traditional agreement, 20% of taxable expenses apply, and in the case of a copyrighted work contract, 50%.
When the customer can get out of the contract
The customer can terminate the contract of work in Poland at any time, even before the end of the term. But then, according to Article 644 of the Polish Civil Code, he must pay the contractor a contingent wage, minus what he has saved due to the non-performance of the assignment.
When the customer can get out of the contract:
- The work contains defects that cannot be corrected.
- The contractor performs it in such a way that the result is defective or contrary to the provisions of the contracts.
- The contractor fails to respond to the customer’s requests for a change in the manner of performance or repair caused by the defects.
- The assignment was not completed within the prescribed time frame.
- The contractor is so late in starting or completing the assignment that there is a high probability that he will not complete the assignment within the stipulated time.
The contractor is fully responsible for the result, i.e., for possible defects, the correction of which may be requested by the client. In the case of minor defects, the client can demand a reduction in remuneration. The client should protect his interests by drawing up clear terms of reference in advance – so that there is a clear measurable result. An appropriate provision will be useful in possible compensation procedures.
In which cases the contractor can refuse to perform the contract:
- The remuneration is too low in relation to the workload.
- Completion of the assignment requires cooperation from the customer and the customer does not do so. For example, if the customer does not provide the necessary materials or does not answer questions about the assignment.
- The receiving party may refuse to correct defects if it would incur excessive costs. The only condition that must be met is the payment of remuneration, less the amount saved due to the lack of need to complete the job.
The contractor’s contract in Poland has another advantage, which is the freedom in how the task is performed. The contractor can do the work anywhere, anytime, and does not have to do it in person. It all depends on the provisions specified in the document, which may impose certain restrictions or specify methods of performance.
Contract for execution of works in Poland with transfer of copyright
Until now, the subject matter of such a contract has been a moot point. It can be a work:
- as well as other various kinds of activity.
An interesting point: from the civil law point of view, it is considered that the work is the result of the efforts of the customer, not the performer.
Unless otherwise specified in the agreement, the transfer of ownership of a copy of the work does not entail the transfer of copyright economic rights in the same work. To allow the customer to use it freely, it is better to include appropriate provisions in the contract.
The transfer of copyright is more advantageous than the acquisition of a license, because it implies complete freedom to dispose of it. In the latter case – only allows the use of the work.
Therefore, in such a contract it should be precisely stated that the client acquires economic copyright and dependent rights to the work. As well as permission to translate and modify the work. Of course, the author’s rights transfer provisions must cover the areas of use expressly stated in the contract.
Areas of use
It is extremely important to comply with the requirement to define the fields of exploitation. This determines the content of the concluded contract, its subject matter and which copyrights have actually been transferred. Individual uses of a work are divided into 3 ranges:
- Recording and copying the work: printing, reprography, magnetic recording, digital techniques, etc.
- Trading the original or copies on which the work is registered: marketing, lending or renting the original/copies.
- Dissemination of a work in a manner other than as specified in paragraph 2. This is public performance, display, demonstration, reproduction, broadcasting and retransmission. It is also making the work available to the public in such a way that everyone can access it at a place and time of their choice.
Statute of limitation and death of the performer
Claims that arise directly out of the contract are subject to the statute of limitations after 2 years from the date on which the work was terminated or from the date on which it should have been terminated.
In the event of the death or incapacity of the contractor, the agreement is terminated.
Elements of a work contract in Poland
A work contract in Poland, including the transfer of copyright, must include:
- Parties (customer and contractor).
- Subject (must contain a full description of the work, including all specific provisions).
- Remuneration (fixed amount or estimate).
- Deadline for completion.
- Moment of copyright transfer and scope of use. Other provisions.
- Signatures of the contracting parties.
Only your own business can be better than working in Poland! Especially if you open it together with partners, who have more than 5 years of real experience in entrepreneurship in Poland, and have all the necessary connections and tools.