The issue of including mandate contracts, other civil law contracts, and business activity in the length of service of employment has received widespread attention recently. The Council of Ministers has already begun work on an amendment that would allow all individuals working under so-called "junk contracts" and B2B contracts to have their employment period included in their length of service.
Why is this so important?
Many entitlements related to universal social insurance, such as retirement, depend on length of service. Currently, even business activity is not included in this period.
In light of the above, it is argued that there is a significant difference that contradicts the constitutional principle of equality before the law. It is also worth noting that, due to the development of technology and the labor market, employees are increasingly choosing flexible B2B contracts or mandate contracts instead of highly restrictive employment contracts. Students, for example, are generally exempt from paying tax or other contributions on mandate contracts until the age of 26.
What will change bring?
As already indicated, it is proposed that periods of business activity and civil law contracts – such as contracts of mandate or contracts for the provision of services – be included in the length of service. However, it is currently unclear what form the bill will take in the Sejm (lower house of parliament), let alone under what conditions the change will occur. A draft bill concerning this change has already appeared on the Council of Ministers' legislative agenda. Its adoption, and therefore its submission to the Sejm, is scheduled for the third quarter of 2024. It is therefore worth monitoring developments – changes may be imminent.
However, reform in this area has undoubtedly been called for for years by an increasing number of entrepreneurs and people employed under mandate contracts, and at the same time – as it seems – it is necessary to ensure equality before the law and social security for thousands of Poles.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of July 25, 2024
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