Registering and Running an Employment Agency in Poland

Employment agency in Poland

Under Polish law, running an employment agency (also referred to as the “recruitment agency”) is a regulated activity. Taking up and running this kind of activity requires compliance with the regulations provided for in the Act on Employment Promotion and Labour Market Institutions. In particular, before commencing such activity it is required to obtain an entry in the register of entities running an employment agency.

Scope of activity of employment agencies in Poland

Pursuant to Article 18(1) of the Polish Act on Promotion of Employment and Labour Market Institutions, the regulated activity subject to the obligation to obtain an entry in the register of entities running an employment agency, is the provision of the following services:

• job placement, consisting in particular of: providing assistance to persons with obtaining suitable employment and to employers with obtaining employees with desired professional qualifications, acquiring and disseminating job offers, providing employers with information on candidates for employment, in relation to the notified job offer, informing candidates for employment and employers about the current situation and expected changes in the local labour market, initiating and organizing contacts of persons seeking suitable employment with employers, directing persons to work abroad with foreign employers, directing foreigners to employment to entities conducting activity in the territory of the Republic of Poland,
• personnel counselling, consisting in particular of: conducting an analysis of employment with employers, determining the qualifications of employees and their predispositions and other features necessary to perform a specific job, indicating sources and methods of obtaining candidates for specific jobs, verification of candidates in terms of the expected qualifications and predispositions,
• vocational counselling, consisting in particular of: providing assistance in choosing a suitable profession and place of employment, providing information necessary for taking professional decisions, in particular about professions, labour market and possibilities of training and education, initiating, organising and conducting group professional counselling, activation classes in the scope of assistance in active seeking of employment, providing employers with assistance in selecting candidates for employment, in particular providing information and counselling in this scope,
• temporary work, consisting in particular of: hiring temporary employees and directing these employees and persons who are not employees to perform temporary work for and under the direction of an employer user;

Entry in the register of employment agencies in Poland

In order to be entered in the register of entities operating an employment agency, it is required to submit an application together with the required attachments, pay registration fees and meet other statutory requirements. The application can be submitted in writing or electronically. Pursuant to the Act on Promotion of Employment and Labour Market Institutions, an entrepreneur intending to carry out the activity of an employment agency cannot have arrears in tax, social insurance contributions, health insurance and employee funds, and moreover, cannot be punished for crimes or certain offences related to the labour market. The activity of the employment agency cannot be conducted by entities in bankruptcy or liquidation.

Permission to operate a recruitment agency in Poland

Apart from the obligation to enter in the register, Polish law does not require obtaining additional permits/concessions/licenses for running an employment agency.

Employment agency in Poland in comparison with other countries

Compared to other European Union Member States, Polish law does not provide for very strict requirements related to the commencement of an employment (recruitment) agency's activity. For example, in order to obtain an entry in the register of employment agencies it is not required to prove possession of sufficient financial resources, a minimum number of employees, knowledge of the Polish language or passing an exam on knowledge of issues relating to the labour market.

Unlike some Member States of the European Union, it is also not required to provide a minimum financial contribution before obtaining an entry.

Starting the activity of a recruitment agency in Poland by a foreign company

Foreign entrepreneurs intending to commence the activity of an employment agency on the Polish market may choose one of several alternative solutions, with the following being the most common for practical reasons.

• Activity in the form of a Polish company.

Foreign entrepreneurs intending to set up an employment agency in Poland often decide to register a Polish limited liability company and obtain an entry in the register of employment agencies by that company. This solution is acceptable both to entities from EU member states and from third countries.

Entrepreneurs who want to quickly start their business activity may also consider purchasing a ready-made company, which on the day of purchasing shares already has the necessary registrations, including entry in the register of employment agencies.

• Establishment of a branch of a foreign entrepreneur in Poland.

Another option is to register a branch of the foreign company in Poland and obtain an entry in the register of employment agencies for the branch.Unlike a subsidiary (the first option), a branch is not, in legal terms, a separate entity from the foreign company (the parent company). Consequently, operating a branch office gives rise to different legal, tax and accounting consequences. Business activity in the form of a branch may be conducted by entrepreneurs from EU member states and, on the basis of reciprocity, from the majority of third countries.

• Cross-border provision of services.

Entrepreneurs from EU Member States, the EEA and other countries exercising the EU freedom to provide services can also take advantage of the possibility of cross-border provision of services by an employment agency without the need to register a company or a branch in Poland. This, however, applies only to companies that in the countries of their registered office are duly authorised to run an employment agency. Before starting the activity consisting in providing job placement services, personal counseling or vocational guidance in the territory of Poland, it is required to notify the relevant authority (Marshal of the Voivodeship). The notification must be made in writing or electronically. If the activity conducted in Poland will also include temporary employment services, in addition to filing a notification, it is necessary to obtain an entry in the register of entities running an employment agency, similarly as in the case of a Polish company or a branch. The notification/application for entry should be accompanied by a document confirming the entitlement to run an employment agency abroad, translated into Polish by a sworn translator. For the reasons indicated above, this may prove to be more time-consuming than the above described alternatives.

Formalities involved in running an employment agency.

After being entered in the register an entrepreneur must comply with the rules governing agencies in Poland.  Employment agencies are obliged, among other things, to submit annual reports on their activity, including various types of information on employees using the services of the agency.

LF LEGAL provides comprehensive legal services related to the establishment and operation of employment agencies in Poland by foreign entrepreneurs, including the choice of the most legally and tax-efficient form of operation in Poland and obtaining the necessary registrations.  In order to obtain detailed information please do not hesitate to contact us.