The primary task of the company's social benefits fund is for employers to finance social assistance, including for employees and their families. As the Supreme Court stated in its judgment of August 20, 2001, I PKN 579/00 248, "the social benefits fund is a legal institution intended to mitigate differences in the standard of living of employees and their families,
as well as retirees and pensioners. It is an expression of the social function of the workplace, and its recipients are particularly the lowest-income families."
Support from the fund should therefore be provided in particular to people who are in a difficult life situation (e.g. due to a serious illness, an accident) or in a worse financial situation (low income per family member).
Social criterion
Pursuant to Article 8, Section 1 of the Act on the Company Social Benefits Fund, the granting of concessional services and benefits, as well as the amount of subsidies from the fund, depends on the personal, family, and financial circumstances of the person entitled to benefit from the fund. This is a so-called social criterion , which means that it is not possible to grant benefits from the fund to all employees at the same level. Applying criteria other than those listed above violates the law (e.g., linking the granting of benefits to an employee's length of service is deemed an inadmissible criterion).
However, the application of the social criterion applies only to discounted services, benefits, and subsidies, not to all activities that can be financed from the company's social benefits fund. For example, the requirement to apply this criterion will not apply to services that are organized as part of universal access on an equal basis, such as team-building events.
Determining the employee's situation
The employer has discretion in determining the personal, family, and financial situation of the eligible person. It is considered sufficient for the employee to submit a declaration of income per family member, indicating the number of people in the employee's family.
However, the employer is entitled to request documentation of personal data to the extent necessary to confirm it. For example, to confirm an employee's health status, the employer may request a medical certificate or documentation confirming treatment. The employee's financial situation may be documented, for example, through personal income tax returns. Depending on the specific benefit, the employer may also request other documentation, such as proof of expenses incurred due to fortuitous events, natural disasters, etc.
Consequences of not applying the social criterion
Failure to apply social criteria when granting benefits may have consequences for employers. The Act on the Company Social Benefits Fund grants trade unions the right to file a claim in court for reimbursement of funds spent in violation of the Act.
The right to go to court may therefore be caused by the granting of benefits from the fund in a manner inconsistent with the social situation, for example on the basis of prohibited criteria.
In addition, the employer or the person responsible on behalf of the employer for spending the fund's resources without applying social criteria is liable to a fine ranging from PLN 20 to PLN 5,000.
Summary:
When awarding benefits from a company social benefits fund, the life, family, and financial circumstances of the eligible person should be taken into account, and the benefit amounts should be differentiated depending on this situation (the lower the income, the higher the benefit). This is sufficient to objectively allocate the fund's resources.
Author:
Series editor:
