Legal work means not only a guarantee of a monthly wage, but also the accumulation of contributions in an individual pension account. An employment contract also gives an employee the right to free medical treatment, paid sick leave, as well as compensation and rehabilitation in the event of a workplace accident.
The results of inspections by ZUS and the State Labour Inspectorate indicate that working without a contract and without being registered for social insurance remains one of the most significant problems facing the Polish labour market. This issue also concerns the employment of foreigners. In the first half of 2016, more than 3,300 citizens of countries outside the European Union and the European Economic Area (the so-called third countries) worked illegally in Poland. This represented more than 23 percent of workers from these countries who were inspected. That was seven times more such cases than in the first half of 2015.
Why is signing a contract so important?
“Many employees, especially young people who are just entering the labour market, have no idea how important it is to sign a contract with an employer,” says Iwona Kowalska, ZUS regional press spokesperson in Lower Silesia. “Tempted by higher pay, they choose to work off the books, without insurance. Our campaign is aimed both at them and at everyone earning money in the so-called grey economy,” she adds.
The campaign aims to show workers the benefits of performing “legal work” and the risks resulting from working “off the books”, as well as to condemn unlawful practices used by employers who decide to assign work in violation of applicable laws.
Who is particularly at risk?
“We also want to reach foreigners working in Poland, especially workers from Ukraine, who very often work without any contract and, because they work in industries where accidents frequently occur, are particularly at risk of being left without any medical or financial assistance in the event of an accident,” explains Iwona Kowalska.
What are the benefits of legal work?
An employee hired under an employment contract benefits from the protections set out in the Labour Code, including:
- the minimum wage
- overtime work
- the right to leave
- paid sick leave.
When someone performs work under a civil-law contract, it must be remembered that the provisions of the Civil Code, not the Labour Code, apply to it, which means that there is no right to leave or other entitlements arising from labour law.
Who does ZUS inspect?
ZUS regularly inspects businesses, companies, institutions, universities and foundations—in other words, contribution payers—to check whether people employed by them have been properly registered for social insurance. Inspectors find the most irregularities in contracts for specific work, which are not subject to contributions, when the content of the contracts shows that they were actually contracts of mandate, for which contributions to ZUS must be paid. The sectors in which ZUS most frequently identifies irregularities are construction, manufacturing plants, educational institutions and retail.
How many foreigners are insured with ZUS?
