Employment Law Newsletter - July 2013

A law introducing amendments concerning parental benefits for employees recently entered into force.
Poland Employment and HR
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Changes in the Labour Code – parental leave

On June 17, 2013 a law introducing amendments concerning parental benefits for employees entered into force. Alongside changes with respect to the existing parenthood-related leaves, a new type of a leave has been introduced: a paid parental leave of 26 weeks. An employer must grant the employee parental leave upon the employee's request, in 1 to 3 allotments, each of them not shorter than 8 weeks. The parental leave is due in addition to the maternity leave (20 weeks in the case one child is born; 31-37 weeks in the case of multiple births) and the additional maternity leave (now increased from 4 to 6 weeks in the case one child is borne and from 6 to 8 weeks in the case of multiple births). The parental leave may be used by one of the parents or simultaneously by both parents; however in the latter case, the joint length of the parents' leave may not exceed 26 weeks. Furthermore, employed parents are now entitled to childcare leave (unpaid) until their child reaches the age of 5 (previously the limit was 4 years of age).

Expected Changes in the Labour Code – working time
The Polish Parliament has finished work on the amendments to the Labour Code concerning working time. The Lower House of Parliament has accepted some minor changes to the bill proposed by the Senate and the new act has been passed to the President for his signature. Once signed by the President (who also has the power to reject the act) and published in the Official Journal, the new law will enter into force after 14 days.
The new law, inter alia, would allow for the extension of the work time settlement period up to 12 months in each working time system, which could allow working time to be balanced over a longer period and could materially decrease operational costs in particular in season-specific businesses. Furthermore, the new law would make it possible to introduce flexible working hours (employees could come to the office at different times every day without exposing the employer to overtime risks). However, both new solutions could only be introduced within procedures requiring the trade unions' or employee representatives' participation.

Supreme Court ruling – employee's refusal to enter into a non-competition agreement
In the recently published ruling of February 12, 2013 (II PK 165/12), the Supreme Court confirmed the prevailing opinion that an employee is entitled to refuse to enter into a non-competition agreement following the termination of employment without bearing negative consequences, such as termination of employment, if the offered agreement is contrary to the provisions of law. In the analysed case, the dismissed employee defended before the court his decision to refuse to sign the non-competition agreement by saying that the amount of the contractual penalty (liquidated damages) inserted in the draft was grossly excessive. The Supreme Court stressed that the what needs to be primarily examined is the proportion between the overall compensation under the non-competition agreement and the contractual penalty. The penalty equal to 24-months' salary was not deemed grossly excessive in the Court's opinion. In one of its earlier judgments, the Supreme Court accepted a PLN 200,000 contractual penalty where the compensation for the non-competition obligation amounted to PLN 90,000.

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