Civil law contracts: contract of mandate – pros & cons

Although contracts of mandate are regulated by the law (the Civil Code, to be more specific), they are still far more flexible than proper employment contracts. This is what makes them so popular in Poland and also what used to spark some controversy. They are usually used when an employer wants an employee to perform certain activities or to complete some specific work, but does not want to hire them under a traditional contract of employment.

What caused controversy with regard to this type of contracts? Employers are charged with lower employment costs while at the same time employees are not protected to the same extent as with contracts of employment. It was especially infuriating for people working under these civil law contracts since many of them included tasks that could easily be qualified as full-time employment.

What changed? In 2017 a new amendment to the Civil Code introduced minimum hourly wage for contacts of mandate. As of 2018 it amounts to PLN 13.7 gross per hour. The changes also obliged the employers to keep a record of time spent by an employee at work, but it did not specify in what ways it needs to be done.

Pros of contracts of mandate:

• possibility to delegate work to a subcontractor;
• freedom (limited employer supervisory over tasks delegated to an employee);
• short notice (unless prearranged otherwise with an employer);
• higher salary for students younger than 26 (no obligation to pay healthcare contributions by an employer).

Cons of contracts of mandate:

• no privileges coming from the Labour Law (paid holidays, paid overtime etc.);
• no maternity, paternity or sick leave;
• no accident insurance or severance pay;s
• short notice (unless prearranged otherwise with an employer);
• smaller access to e.g. bank loans.

Let us know if you have ever had a contract of mandate in Poland and what is your experience with it, either good or bad!