or about changes in labor law in 2024
The year 2023 saw many fundamental changes in labor law, including the entry into force of the "work-life-balance" directive, which loosened the bonds between employees and their jobs, granting them greater freedom in their performance. In September, we learned that this was not the final word, and the labor market would face many more amendments in 2024. The most significant changes will be the minimum wage and the minimum rate for contracts of mandate.
Change in the minimum wage
The amended regulation provides for a significant increase in the minimum wage. Due to the high, projected increase in inflation, the legislature has envisaged two increases in the minimum wage – in January and July 2024. Effective January 1, 2024, the minimum wage will be PLN 4,242 and the minimum hourly rate will be PLN 27.70.
However, from 1 July 2024, the minimum wage is set at PLN 4,300 and the minimum hourly rate is set at PLN 28.10.
The impact of the change in the minimum wage on other areas
An increase in the minimum wage undoubtedly impacts the amount of other benefits employers are obligated to provide. The regulations link the amount of other benefits to which employees are entitled to the minimum wage. Therefore, the increase in the minimum wage will affect, among other things, the following rates:
a) severance pay for termination of employment as part of a collective redundancy, the amount of which may not exceed fifteen times the minimum wage;
b) compensation for an employee subjected to mobbing or compensation for a breach of the principle of equal treatment in employment, the amount of which may not be lower than the minimum wage;
c) an allowance for overtime work, where the employee is entitled to remuneration for each hour of night work in the amount of 20% of the hourly rate resulting from the minimum wage;
d) an amount free from deductions from remuneration, which is determined on the basis of the minimum wage applicable in a given calendar year.
The amounts indicated above are only examples of situations in which the legislator takes into account the amount of the minimum wage when calculating other benefits to which an employee is generally entitled.
Therefore, the above change will undoubtedly hit employers, and the costs of legal proceedings in employee cases will increase (for example, due to the fact that the amount of compensation to which an employee is entitled will depend on the minimum wage).
Overtime pay – civil servants
According to the changes that will come into force on 1 January 2024, a civil servant will be entitled to remuneration for overtime work performed at the request of a superior and a civil servant for overtime work performed at night.
Currently, both employees and civil servants are entitled to compensation only in the form of time off in the same amount.
In addition, a civil servant to whom a working time system other than weekends applies will be entitled to a day off in the following week for work on Sunday, and for work on a public holiday – another day off or remuneration for the time worked on those days.
However, a person holding a senior position in the civil service, excluding the director general of an office and the head of an office, will be entitled to compensation for overtime work performed at the request of a superior (including at night or on Sundays and public holidays) in the form of time off (of the same amount) or payment of remuneration for that time.
A civil servant wishing to receive compensation is required to submit an application. The application for payment of remuneration must be submitted in writing, either in hard copy or electronically, to the director general of the office, through their immediate superior, within 14 days after the end of the settlement period. It will be reviewed within 14 days of its submission.
Bridge pensions for the benefit of employees
From January 2024, the regulations regarding bridge pensions will change. What is a bridge pension? A bridge pension is a benefit available to individuals before reaching the standard retirement age who, due to poor health, are unable to work. This benefit provides support for this group of individuals. The main goal of the amendment is to eliminate the expiring nature of bridge pensions. The primary goal of the amendment is to change the conditions for acquiring the right to a bridge pension in relation to the Act of 19 December 2008 on Bridge Pensions.
So, what will change regarding the conditions for obtaining a bridging pension? First and foremost, the amended regulations remove the requirement of working in difficult conditions or performing work of a special nature before January 1, 1999. Therefore, individuals who performed work in difficult conditions after January 1, 1999, will be eligible to apply for a bridging pension from January 1, 2024. The age of the person applying for the benefit will not change, as they must still be five years away from reaching retirement age. Another requirement for those applying for the so-called "bridging pension" remains unchanged: the period of work in harmful conditions must be at least 15 years. These changes will undoubtedly expand the group of people eligible for a bridging pension, although obtaining this benefit remains subject to numerous conditions.
Furthermore, the amended law also changes the concept of compensation and the rules for granting compensation. According to the amended regulations, compensation is understood as compensation for the loss of the right to early retirement due to working in harmful conditions. This will apply to individuals who do not have a legally binding decision establishing the right to a bridging pension.
The provisions on the suspension of the right to a bridging pension are also subject to change, including in the event that the person entitled to receive it takes up work in special conditions or of a special nature on the basis of a civil law contract.
As you can see, we already know that the coming year will undoubtedly be full of changes to labor law regulations, particularly regarding employee rights. This likely won't be the legislator's final word on amendments, and 2024 will likely bring many more proposed changes to existing regulations.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of December 1, 2023
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