As you can easily deduce from the title of the article, today we will discuss what I think is the most important topic from the employee's point of view, namely remuneration for work.

The definition of an employment relationship states that by entering into an employment relationship, the employee undertakes to perform a specific type of work for the employer and under their direction, at a place and time designated by the employer, and the employer undertakes to employ the employee for remuneration . It is clear from the above that remuneration is a fundamental and permanent element of the employment relationship.

Can remuneration be waived?

As I indicated above, remuneration is a permanent element of the employment relationship, and while it seems clear that by offering unpaid work, the employer is essentially proposing volunteering, the question arises as to whether an employee could voluntarily waive their remuneration. In this case, the provisions of the Labor Code clearly state that this is not possible – "An employee may not waive the right to remuneration or transfer this right to another person" (Article 84 of the Labor Code). The possibility of an employee waiving all or part of their remuneration could lead to a situation where the employer, taking advantage of their position, could induce the employee to do so. Therefore, to curb the possibility of such abuses, the legislator has clearly defined this in the Code. It is also worth noting the Supreme Court's ruling (I PZ 14/22) : "The principle of Article 84 of the Labor Code means that the prohibition on waiving the right to remuneration and transferring it to another person applies to both all and part of remuneration. Remuneration also includes a jubilee bonus and an allowance for unused vacation time ." Therefore, there is no possibility of waiving additional remuneration. Another important element of the impossibility of waiving remuneration is the invalidity of the employee's undertaking not to claim payment of remuneration from the employer in the future . This was also addressed by the Supreme Court in its decision of March 16, 2022 (II PSK 312/21): "Since the employee's waiver of the right to remuneration for work is invalid, the employee's undertaking not to claim payment of remuneration from the employer in the future is also invalid. This type of pactum de non petendo would constitute a circumvention of the absolute prohibition on waiving the right to remuneration (Article 58 § 1 of the Civil Code in conjunction with Articles 300 and 84 of the Labor Code). Pactum de non petendo , although generally permissible and effective in the light of freedom of contract, in a situation where the legislator, in the interest of the creditor, establishes a prohibition on waiving a subjective right, it should be classified as constituting a circumvention of the law and for this reason invalid."

Can remuneration be paid in another form?

You can imagine a situation where a restaurant owner pays an employee's wages by providing them with a full meal, or a clothing store owner pays an employee's wages in a certain number of jeans. Is such a situation possible? Of course, unfortunately, it is. But is it permissible? Of course not. The employer is obligated to pay in cash. Partial payment of wages in a form other than cash is only permissible when permitted by statutory labor law or a collective bargaining agreement. Therefore, even partial payment in jeans is unacceptable!

As long as it's the first one!

This common saying, of course, has its roots in the Labor Code and established practice. Wages are paid at least once a month, on a fixed, pre-determined date. Deferring the payment of wages beyond the deadlines specified in the regulations is always less favorable for employees. Therefore, a clause in an employment contract granting the employer the right to postpone the payment date is invalid and is automatically superseded by the Labor Code. Wages are paid in arrears, meaning that after the employee has worked, immediately after the full amount has been determined, but no later than the first 10 days of the following calendar month. Many employers pay wages at the end of the month, but it is also possible, and perfectly legal, for wages to be paid by the 10th. What if the agreed-upon payday falls on a public holiday? The employer is obligated to pay wages on the preceding day.

How?

Before the 2019 amendment, the norm was for wages to be paid directly to the employee, unless the employee consented in writing to be paid differently. Legislators quite rightly decided to change this provision so that wages are generally paid directly to the employee's designated payment account . Payments directly to the employee are made upon written request.

The topic of remuneration is a very broad topic. However, its basic elements are clearly defined in the Labor Code to prevent any potential for abuse. Employers are absolutely obligated to pay remuneration in a specified form and within a specified timeframe. More on other aspects of remuneration will be discussed in the next article.

This article is for informational purposes only and does not constitute legal advice.

Legal status as of November 10, 2023

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