Comparison of employment contracts, contract of mandate and self-employment based on the law applicable in Poland
| Employment contract | Contract of mandate | Self-employment |
|---|---|---|
| Regulated by the labor code | Regulated by the civil code | Regulated by the civil code (civil-law contract with a person who is self-employed) |
| Consists in performing work | Covers provision of a service; contract of due diligence | B2B relationship. Self-employed person does not employ staff to perform the contract (in the case of dependent self-employment) |
| Official reporting line (supervised work) | Guided by the employer but without supervision | Self-employed person is autonomous |
| Specified time and place of work | No obligation to specify the time and place | Self-employed person is autonomous |
| All social security contributions are paid. A percentage of the contribution in relation to income is specified in advance and is the same for all employment contracts. The salary basis for calculating sickness contribution is not limited | Contributions are paid depending on the contractor’s status. Sickness contribution is always voluntary. The salary basis for calculating sickness contribution is limited. A percentage of the contribution in relation to income is determined in advanced and is the same for all contracts of mandate | Employer does not pay taxes and social insurance contributions for self-employed people. A percentage of the contribution in relation to income is specified at different levels, depending on the form of taxation declared by the self-employed person |
| Income tax is 12% or 32% depending on income | Income tax is 12% or 32% depending on income | Various forms of taxation are possible, e.g. lump sum tax or income tax (based on terms as in an employment contract or a flat-rate tax – 19% regardless of the amount of income) |
| Occupational health and safety training is mandatory (provided by employer). Employers are also obligated to facilitate the upskilling of employees. In some situations they must give employees fully paid training leave | Activities in the area of employee training strictly depend on the arrangements between the employer and the worker | Activities in the area of employee training strictly depend on the arrangements between the employer and the worker |
| Employment contract | Contract of mandate | Self-employment |
|---|---|---|
| Regulated by the labor code | Regulated by the civil code | Regulated by the civil code (civil-law contract with a person who is self-employed) |
| Consists in performing work | Covers provision of a service; contract of due diligence | B2B relationship. Self-employed person does not employ staff to perform the contract (in the case of dependent self-employment) |
| Official reporting line (supervised work) | Guided by the employer but without supervision | Self-employed person is autonomous |
| Specified time and place of work | No obligation to specify the time and place | Self-employed person is autonomous |
| All social security contributions are paid. A percentage of the contribution in relation to income is specified in advance and is the same for all employment contracts. The salary basis for calculating sickness contribution is not limited | Contributions are paid depending on the contractor’s status. Sickness contribution is always voluntary. The salary basis for calculating sickness contribution is limited. A percentage of the contribution in relation to income is determined in advanced and is the same for all contracts of mandate | Employer does not pay taxes and social insurance contributions for self-employed people. A percentage of the contribution in relation to income is specified at different levels, depending on the form of taxation declared by the self-employed person |
| Income tax is 12% or 32% depending on income | Income tax is 12% or 32% depending on income | Various forms of taxation are possible, e.g. lump sum tax or income tax (based on terms as in an employment contract or a flat-rate tax – 19% regardless of the amount of income) |
| Occupational health and safety training is mandatory (provided by employer). Employers are also obligated to facilitate the upskilling of employees. In some situations they must give employees fully paid training leave | Activities in the area of employee training strictly depend on the arrangements between the employer and the worker | Activities in the area of employee training strictly depend on the arrangements between the employer and the worker |
Source(s): Created by authors
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