TGC Corporate Lawyers Legal review – July 2024

Newsletter – changes in regulations and interesting decisions. July 2024.

1. Deregulatory package – less formalities for entrepreneurs

The first deregulatory package will make it easier to set up and run a business in Poland. Its objective is to reduce the administrative burden on entrepreneurs, simplify procedures and solutions to promote development of the smallest firms, including those in the crafts sector. The package will include solutions such as digital version of the leasing agreement or digital version of the promissory note.

The deregulation package is the result of a dialogue with representatives of the business community. Many of the proposals included in the bill, such as shortening the time of inspections of micro-enterprises, result from the postulates formulated by the Prime Minister. The government’s goal is to create a law that is friendly to entrepreneurs – stable, understandable and better consulted.

The main assumptions of the deregulation package:

• Reduction of regulatory obligations
• Speeding up administrative procedures
• Support for the development of micro-enterprises
• Reducing the time of inspections of micro-enterprises (from 12 to 6 days)
• Making the number of inspections dependent on the risk category (low – no more often than once every 5 years, medium – once every 3 years, high – once every 2 years)

As part of the facilitation for business, the law makers propose:

• Possibility for persons conducting unregistered activity to use only the PESEL number
• Extension of the list of legally permissible forms of conducting business activity in the crafts sector
• Clarification of the provisions regulating the programme known as Small ZUS Plus (Mały ZUS Plus)
• Regulating the issue of contributions on civil law contracts concluded as part of the unregistered activity
• Clarification of the possibility of conducting unregistered activity by foreigners

Law for business, or when deregulation will become a fact

The changes proposed in the bill will certainly create favourable conditions for development of entrepreneurship in Poland, fostering economic growth and the creation of new jobs. The elimination of interpretative ambiguities in the regulations, the improvement of procedures for companies or the provision of greater legal certainty for entrepreneurs when it comes to running a business should be assessed positively.

The deregulation package is currently in the consultation process. The Ministry of Development that prepares deregulation package, expects it will be debated by the Sejm at the turn of 2024 and 2025.

The bill is on the list of the Government Legislation Centre.

Read the article

2. Employers’ obligations – amendment to the special act on Ukrainians

The amendment to the Act on Assistance to the Ukrainian Citizens in Connection with the Armed Conflict in Ukraine not only prolonged the regulations in force on the stay and employment of Ukrainians, but also supplemented them with new rules for gaining access to the Polish labour market. Those changes in some cases may impose additional obligations on employers.

Assistance Act – changes in the employment of Ukrainian citizens

The amended Act on Assistance to Ukrainian Citizens in Connection with the Armed Conflict in Ukraine entered into force on 1 July 2024. It introduces important changes in access to the labour market, such as:

• a shortened 7-day deadline for the employer to send a notification of employment of a Ukrainian citizen (previously it was 14 days);
• an obligation to submit another notification of employment of a Ukrainian citizen if:
• the type of contract between the employing entity and the citizen of Ukraine has changed,
• the job position or type of work has changed,
• the working time or the number of working hours per week or month specified in the original notification has been reduced,
• the monthly or hourly rate of remuneration specified in the original notification has been reduced,
• an obligation to indicate in the notification of employment of a Ukrainian citizen at least the minimum salary or the minimum hourly rate,
• the possibility of applying for a temporary residence permit for families.

Employment of foreigners – legal support for employers

TGC Corporate Lawyers specializes in obtaining work permits and documents allowing for legal residence in Poland for foreigners.

We provide comprehensive assistance in meeting all procedures related to the legalization of stay and obtaining documents necessary for foreigners to take up employment.

Legal services for foreigners – find out how we can help your company!

Find out more about the changes to the special act: read the article

3. Whistleblower Protection Act: new obligations for employers

On 24 June, the Whistleblower Protection Act was published in the Journal of Laws. It implements the provisions of EU Directive 2019/1937 on the protection of persons who report breaches of law into the Polish legal system. It defines the scope of obligations that employers must face, for example, in connection with the need to establish an internal reporting procedure. There is little time to prepare as this Act will come into force in September.

Who has to implement the new whistleblower regulations?

According to the regulations, a whistleblower or a person who reports or discloses information about a breach of law within the scope covered by the Act, may perform:

• internal reporting,
• external notification or
• public disclosure.

All entities in both the public and private sectors are generally required to implement the new provisions of the Whistleblower Protection Act. However, specific obligations have been placed on some of these entities to establish an internal reporting procedure, including the establishment of reporting channels:

• public and private sector entities that employ at least 50 people as of 1 January or 1 July of a given year, and
• entities operating in the financial sector, regardless of whether they belong to the public or private sector and regardless of the number of employees.

Other entities may establish internal reporting procedures on a voluntary basis.

Internal reporting: key obligations of employers

An internal report is information about a breach of law in a legal entity whose whistleblower is an employee or has other gainful relationships with it.

The internal reporting procedure should specify things such as:

• an internal organizational unit or a person within the organizational structure of a given business entity or other authorized external entity that will accept reports,
• methods of submitting internal reports,
• an impartial internal organisational unit or a person within the organisational structure of the entity, authorised to follow-up on reports,
• rules for conducting the investigation,
• maximum deadlines for providing feedback to a whistleblower,
• keeping a register of reports.

A reporting whistleblower is protected from the moment of reporting or from the moment of public disclosure, provided that they had reasonable grounds to believe that the information provided was true and it constituted information about a breach of law.

Learn more – read the article

4. Whistleblower Protection Act – find out how we can help implement the new regulations

Most of the provisions of the Whistleblower Protection Act enter into force on 25 September 2024. Until then, the entities covered by new regulations should implement appropriate procedures for reporting breaches of law in their organizations. Employers may face sanctions in the form of a fine for failure to do so.

To ensure that whistleblower protection procedures are properly implemented and channels are in place for reporting irregularities and abuses, we offer you support including:

• creating and implementing effective internal reporting procedures,
• training for employees,
• legal audit in terms of compliance of processes with new regulations.

Whistleblower protection – see how we can help!

Learn more, watch the webinar recording – Whistleblower protection – how to implement the provisions of the new Act?

5. Act on the National Court Register – the government has developed assumptions for the amendment

The aim of the proposed legislation is to completely switch to an obligatory way for entities in the register of associations to submit registration applications via the ICT system. This is to bring the register of associations on equal terms with the register of entrepreneurs within the National Court Register (KRS).

Moving away from paper applications and registration files will allow entities in the register of associations and social and professional organisations, foundations and independent public health care institutions to benefit from solutions such as online access to registration files and case files, among others. This will eliminate or reduce the current obstacles and impediments associated with paper filing.

Let us recall that currently, under the Act of 26 January 2018 amending the Act on the National Court Register and certain other acts, all registration proceedings concerning the register of entrepreneurs from 1 July 2021 are already held exclusively through the ICT system. Register proceedings concerning the register of associations are held online only if the applicant has selected the ICT system for the case.

The planned deadline for the adoption of the draft by the Council of Ministers is Q2 2025.

You can read more about the assumptions of the amendment to the act here

6. A modern system for conducting Electronic Write-off Payments Proceedings (EPU) before the end of 2025

The Ministry of Justice has announced the launch of a cutting-edge IT solution, EPU 3.0 system, by the end of 2025.

Electronic Write-off Proceedings (EPU) is an institution that was introduced on 1 January 2010 on the basis of an amendment to the Civil Procedure Code and is governed by the Civil Procedure Code. It enables the enforcement of monetary claims without the need to appear at hearings.

A defendant in the EPU may be:

• a self-employed natural person,
• a natural person not carrying out an economic activity
• a legal person,
• an organisational unit which is not a legal person,

having a domicile or registered office address in the territory of the Republic of Poland.

EPU 3.0 is to be expanded to include new services such as:

• filing of a lawsuit by an individual,
  • filing of a mass action,
  • provision of case files.

Among other things, the new system is expected to provide greater security for users and contribute to improving accessibility to justice in the field of write-off proceedings.

You can read more about EPU 3.0 here

7. Webinar: ESG in your company – last call!

We invite companies that are subject to non-financial reporting obligations, as well as those that need to start it because their clients, partners or financial institutions require it, and all companies that seriously think about sustainability to watch the recording of our ESG webinar.

From the recording, learn, among other things, why ESG in your company should be thought of today. You will also learn about tools that automate ESG activities, provide reliable information and help companies become more environmentally friendly.

Learn more, watch the webinar recording!

Check also: ESG – sustainability advisory services