BackContract of employment versus contract of mandate – what are the differences?
The employment contract and the contract of mandate are the two most common forms of employment in Poland. Although they may seem similar, they differ in many aspects. Contract of employment and contract of mandate – what are the differences? Contract of mandate versus contract of employment – which is more profitable?
Employment contract – what makes it different?
The employment contract is a form of employment of an employee that is regulated by the Labour Code. It is distinguished primarily by the stability and legal protection of the employee. The contract defines the rights and obligations of the employee and the employer and sets out the terms and conditions of employment, such as remuneration, working time, annual leave, social security, and the manner of termination.
An employment contract can be signed for a fixed term, an indefinite term or a probationary period. All terms and conditions of employment must be in writing, which helps avoid misunderstandings. An employee with an employment contract is covered by social security, so that he or she can benefit from benefits in the event of illness, accident or maternity leave.
This form of employment gives the employee stability and protection. If the employer does not comply with the regulations, the employee can enforce his or her rights in the labour court. This makes the employment contract a frequently chosen form of employment, especially for those seeking security and stability.
What are the types of employment contract?
Probationary employment contract
A probationary employment contract is a way for the employer to assess how the employee is performing. It also gives the employee the opportunity to become familiar with the organisation of the company and to see if the working conditions suit him or her. This type of contract can be for a period of between one and two months.
Fixed-term employment contract
A fixed-term contract has a clearly defined duration. It is usually used for temporary work. This type of contract cannot be concluded for more than 33 months from the time it is signed. In addition, the employer may enter into a maximum of three such contracts in a row.
Permanent contract
An open-ended contract is the most commonly preferred form of employment. Its feature is that there is no fixed end date, which provides the employee with more certainty and stability. The employee receives a salary, which can vary depending on the work performed or the agreement with the employer. This type of contract can be terminated by both parties, provided that certain rules are met, such as the notice period or the reasons for disciplinary dismissal. The employer must give a specific reason if it decides to terminate the contract.
Contract of mandate – what makes it different?
A contract of mandate is a civil law contract governed by the Civil Code. It is a flexible form of employment in which one person undertakes to perform a specific task for another. It can be concluded orally or in writing, but for evidential and formal reasons, the written form is desirable. Under this contract, the contractor organises his or her work independently, but is obliged to perform the task as agreed in the contract.
A contract of mandate does not provide privileges such as annual leave or sick pay. It is usually used for casual, seasonal work or tasks requiring a short-term commitment. However, this is not the rule.
In the case of a contract of mandate, it is important to define the exact scope of duties, as it is on this basis that the performance of the task is accounted for.
Does a contract of mandate count as seniority?
A contract of mandate does not count towards seniority because it is not considered an employment contract. Seniority is only counted on the basis of periods of employment under an employment contract, as it is the contract that guarantees full employment rights, such as annual leave, protection against dismissal or sick pay.
Although a contract of commission does not affect seniority, it may nevertheless be important in other situations, for example in determining social security contributions or the work experience required by the employer in the future.
Contract work – does it pay?
Contract work can be an attractive option if you are looking for flexibility and want to avoid the formalities associated with a full-time job. It gives you the freedom to organise your working hours and the opportunity to start work sooner, which is particularly beneficial for students or part-timers. Contract work also gives you the opportunity to work on short-term contracts, which may suit those who are not looking for long-term employment.
However, contract work comes with certain limitations. First and foremost, it does not give full employment rights, such as annual leave or protection from dismissal. Contract work can therefore be beneficial if you want flexibility and do not need full employment benefits. However, if you are looking for stability and full protection, other forms of employment are worth considering.
Notice periods and employee protection
Notice periods and employee protection differ depending on whether we are dealing with an employment contract or a contract of commission.
Employment contract:
In the case of an employment contract, the notice period depends on how long the employee has been employed by the company. The standard notice periods are:
- For employees employed for less than 6 months: 2 weeks,
- For employees employed between 6 months and 3 years: 1 month,
- For employees employed for more than 3 years: 3 months.
Both the employee and the employer can terminate the contract, but the employer must indicate the reason for the termination. There are also cases where the employment contract can be terminated without notice, such as in the case of a serious breach of duty by one of the parties.
In the case of a contract of mandate, the regulations are more flexible. The period of notice for this contract can be set individually in the contract or can be derived from the provisions of the Civil Code. Usually, the parties agree that the contract can be terminated with a notice period of a few days or one month. If the contract does not specify a notice period, both parties may terminate the contract at any time with a reasonable period of notice.
Contract of employment versus contract of mandate – what are the differences?
An employment contract and a contract of mandate are two different forms of employment that differ in many respects. With an employment contract, the employee performs work for the employer, must do so in person and at a place designated by the employer. The contract gives the employee rights, such as the right to holidays or health benefits, and the employer issues an employment certificate at the end of the work. The employee is paid a salary that cannot be less than the minimum wage and the working hours are determined by the employer.
In contrast, a contract of commission is more flexible. With this contract, the employee (contractor) has more freedom in the execution of the assignment – he or she can do it anywhere and at any time, provided the agreed work is performed. A contract of mandate does not give rights like an employment contract, so the employee is not entitled to holidays or other benefits. He or she is also not obliged to perform the work himself or herself; he or she can delegate the work to others.
It is worth mentioning that a contract for specific work is another type of civil law contract, which involves the performance of a specific work, such as writing an article or creating a project. Unlike an employment contract, it does not involve a permanent employee and the remuneration depends on the result of the work.
The decision to choose an employment contract or a contract of mandate depends on a number of factors, such as the needs of the employer and the expectations of the employee. Under an employment relationship, the employee has broader protection rights under the Labour Code, such as holidays, sick pay and the right to termination.
By signing a contract of mandate, the employee performs a specific job at a specific time, but does not have the same rights as with an employment contract. Entering into a contract of mandate gives greater flexibility, but entails less protection of employee rights. Therefore, before signing a contract, it is advisable to consider well which form of employment will be most suitable for your situation.
Check also: Working without a contract – why doesn’t it pay?
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