Why Do Employers Lose Employment Cases? A List of the Most Common Mistakes

Employment law disputes concerning dismissals are among the most common proceedings before Polish courts. For many employers, they come as a surprise – especially when an unfavorable judgment is issued despite the belief that the HR decision was rational, justified, and compliant with the company’s internal policies. Court practice clearly shows that employers lose employment cases exceptionally often.

Importantly, these defeats rarely result from bad faith or poor litigation strategy. Much more frequently, the causes include:

failure to comply with formal requirements when terminating employment,

incorrect assessment of legal risks,

stating the reasons for dismissal too generally or failing to provide evidence supporting them,

excessive reliance on standard templates instead of legal provisions and case law.

Labour courts assess not so much the correctness (soundness) of the employer’s decision, but primarily its compliance with legal requirements and whether each material element of the decision can be proven. Even objectively justified actions may result in defeat if the documentation was not properly prepared or if the sequence of actions was incorrect.

In which types of disputes do employers most often suffer losses, and why? Below we discuss the categories of cases that regularly end unfavorably for employers and indicate the mistakes that lead to such outcomes.

Courts are particularly rigorous in cases where the dismissal concerns employees subject to special protection, such as:

pregnant women,

employees of pre-retirement age,

trade union activists.

Even a minor procedural error may determine the employer’s defeat.

Cases Concerning Unlawful Termination of an Employment Contract

This is the category of cases in which employers most frequently lose.

Courts examine in particular:

whether the employer’s actions complied with the Labour Code (fulfilment of formal requirements),

whether the reasons for termination were true and specific (but not whether they were justified).

Why do employers lose?

the reasons for termination are stated too generally,

the actual reason differs from the one indicated in the employer’s statement,

there is no evidence supporting the allegations made against the employee (false reason for dismissal).

Cases Concerning Summary Dismissal (Termination Without Notice)

Termination of an employment contract with immediate effect (“disciplinary dismissal”) is treated by courts as an exceptional measure that must be applied with the utmost caution.

The most common mistakes leading to defeat in court are:

failure to demonstrate a serious breach of fundamental employee duties,

exceeding the one-month deadline for termination in this mode,

formal errors when delivering the termination statement.

The consequences?

Employers who lose such cases may be ordered to:

pay compensation,

reinstate the employee.

Cases Concerning Overtime and Working Time Settlements

Claims regarding unpaid overtime constitute another category of disputes in which employers regularly suffer losses.

Why?

lack of reliable and legally compliant working time records,

incorrect determination of task scope in task-based working time systems.

Cases Concerning Mobbing and Discrimination

Under the current legal framework, the burden of proof lies with the employee bringing the claim to demonstrate circumstances indicating discrimination. Nevertheless, cases concerning mobbing and unequal treatment are increasingly ending unfavorably for employers – especially where the employer has not implemented appropriate preventive procedures that would allow it to defend against the allegations.

Common shortcomings:

lack of anti-mobbing policies,

ignoring employee complaints,

failure of management to respond to reports of violations.

Consequences:

obligation to pay compensation and damages for non-material harm,

serious reputational damage.

Labour code – a new version of changes regarding mobbing

Read full article

Cases Concerning Bonuses, Severance Pay, and Other Benefits

Employers also frequently lose disputes concerning:

severance payments in collective redundancies,

contractual bonuses and awards.

The most common problem is imprecise internal regulations or their inconsistent application.

Disputes Resulting from Documentation Deficiencies

In court practice, documentation plays a key role. Its absence or unreliability almost always works to the employer’s disadvantage.

This includes, among others:

deficiencies in personnel files,

undocumented disciplinary penalties,

oral arrangements not confirmed in writing.

Summary

Why do employers lose employment cases? The most common causes of defeat are:

formal errors,

lack of documentation,

failure to conduct a proper legal risk analysis.

Often, a loss in the Labour Court results from the fact that, at the stage of making the decision and considering its consequences, the employer did not seek legal support that could have helped avoid at least the most serious mistakes.

How Does TGC Corporate Lawyers Support Employers?

TGC Corporate Lawyers has experience in preventing employee disputes and supporting employers in employment law proceedings.

The scope of support includes, among others:

risk analysis prior to termination of employment,

preparation of HR documentation,

advisory services in individual and collective dismissals,

support in disputes concerning overtime, mobbing, and discrimination,

representation of employers before labour courts,

HR audits and training for management staff.

Our goal is to minimize the consequences of disputes and protect employers’ business interests.

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Frequently Asked Questions (FAQ)

Do employers really lose employment cases more often?

Which cases are the most risky?

Is it sufficient to state the reasons for termination in general terms?

Can an employer avoid stating reasons that might be poorly received by the employee?

Is it better to resolve a dispute out of court or wait for a claim and court proceedings?