Terminating an employment contract with notice (wypowiedzenie) by the employer is one of the most important and at the same time most complicated procedures in labour law. Employers must comply with numerous legal provisions governing not only the termination process itself, but also notice periods, the form of the declaration and situations in which notice is not permitted. Carrying out this procedure incorrectly may have serious financial and legal consequences for the business.
The Labour Code (Kodeks pracy) imposes special obligations on employers when terminating employment contracts with notice, which differ significantly from employees' rights. While an employee can give notice practically without restrictions, the employer must have justified reasons and follow strictly defined procedures. Any breach of these rules can be challenged by the employee before the labour court, leading to costly disputes and potential compensation.
Notice periods for employment contracts
The system of notice periods in Polish labour law underwent significant changes in 2016 (from 22 February 2016), when the legislator decided to standardise notice periods for all types of employment contract. Previously, different periods applied depending on the type of contract, which caused numerous interpretation difficulties and practical problems for employers.
Notice periods for employment contracts were standardised in 2016 for all types of contract. The same periods now apply regardless of whether the contract was concluded for a fixed term or an indefinite period. This change considerably simplified HR procedures in businesses
The current notice periods are 2 weeks for employees employed for less than 6 months, 1 month for those employed for at least 6 months and 3 months for employees with at least 3 years of service with the given employer (Article 36 § 1 of the Labour Code). The period of employment with the given employer includes, among other things, employment with the previous employer in the event of a transfer of the workplace (Article 36 § 1¹) and, from 2026, also periods of contracts of mandate (umowa zlecenia) and business activity under which the person worked for that employer (Article 302¹ § 8 – from 1 January 2026 in the public sector, from 1 May 2026 for other employers). These periods are fundamental for the business's staffing and budget planning, because the employer must take into account the cost of pay for the whole notice period. We prepare pay for the notice period and the employment certificate for clients who rely on our payroll outsourcing.
Special rules apply to probationary employment contracts, where the notice periods are much shorter and adapted to the specific nature of this type of employment. Contracts for a probationary period not exceeding 2 weeks may be terminated with a notice period of 3 working days, contracts for a probationary period longer than 2 weeks require one week's notice, and the longest probationary contracts, for 3 months, require two weeks' notice (Article 34 of the Labour Code).
Probationary employment contracts have special, shortened notice periods. The shortest period is 3 working days where the probationary period does not exceed 2 weeks. The longest probationary period is 3 months, with two weeks' notice
Employers must also remember the possibility of terminating the contract without observing a notice period (termination without notice), which is governed by Articles 52 and 53 of the Labour Code. This form of terminating the employment relationship may be used only in strictly defined cases and requires particular caution, because applying it incorrectly may have serious legal consequences.
Options for shortening the notice period
Shortening the notice period is an important tool for employers who, for various reasons, cannot or do not want to keep the employee for the whole standard notice period. The Labour Code provides for two basic situations in which such shortening is possible, each with different conditions and legal consequences.
The first option for shortening the notice period arises from Article 36¹ § 1 of the Labour Code and applies where notice is given because of the declaration of the employer's bankruptcy or liquidation or for other reasons not related to the employee. In such cases the employer may unilaterally shorten a three-month notice period to no less than one month, and the employee is entitled to compensation equal to pay for the remaining part of the notice period. This rule is particularly important in cases of restructuring, closure of a business or declaration of bankruptcy.
The employer may shorten a three-month notice period to one month where the reasons are not related to the employee. This applies to situations such as closure of the company, bankruptcy or restructuring. Shortening is a unilateral decision of the employer, without the need to obtain the employee's consent, but compensation is due for the shortened part of the period
The second option for shortening the notice period requires the mutual consent of the employer and the employee. In this situation, after notice has been given, the parties may agree on an earlier date for terminating the contract, even without the notice period running any further (Article 36 § 6 of the Labour Code). It is important, however, that such an agreement does not change the legal nature of the termination of the employment relationship – it remains a termination with notice, with all the resulting legal consequences.
Applying a shortened notice period in practice requires the employer to pay particular attention to procedural issues. Where the period is shortened for reasons not related to the employee, the employer must be prepared to pay compensation for the remaining part of the notice period. Where it is shortened by mutual consent, appropriate documentation confirming the employee's consent to the shortening must be prepared.
Form of notice terminating an employment contract
The form of notice terminating an employment contract is crucial for the effectiveness of this legal act and for any disputes that may arise between the parties to the employment relationship. Article 30 § 3 of the Labour Code clearly states that a declaration of notice terminating an employment contract should be made in writing, which applies both to notice given by the employer and by the employee. The written form is also satisfied by a declaration in electronic form bearing a qualified electronic signature (Article 78¹ § 2 of the Civil Code in conjunction with Article 300 of the Labour Code).
The written form requirement is intended to ensure legal and evidential certainty in a matter as important as terminating an employment relationship. Written notice limits doubts about the content of the declaration, the date it was made and other relevant circumstances. For employers, this means preparing the right documents and making sure they are properly delivered to the employee. The employer's declaration should also include information on the right to appeal to the labour court (Article 30 § 5) – the appeal is filed within 21 days of delivery of the letter giving notice (Article 264 § 1).
Notice terminating an employment contract should be given in writing in accordance with Article 30 § 3 of the Labour Code. Failure to observe the written form does not make the notice invalid, but it makes it defective. The employee may then pursue claims arising from defective notice
An important point is that failure to observe the written form does not make the notice invalid, only defective. This means that notice given orally, by phone or by ordinary email (without a qualified electronic signature) still has legal effect, but the employee may pursue claims for breach of the rules on form. In such cases the labour court may – in line with the employee's claim – declare the notice ineffective, reinstate the employee or award compensation (Article 45 § 1).
Employers must also remember to deliver the written notice properly. Delivery should take place in a way that makes it possible to prove that the employee received the declaration of notice. In practice, this means handing the document over in person with an acknowledgement of receipt or sending it by registered post with acknowledgement of receipt.
Obligation to state the reason for notice
The employer's obligation to state the reason for notice is one of the most important safeguards protecting employees against arbitrary decisions by employers. Article 30 § 4 of the Labour Code specifies that the employer's declaration of notice terminating an employment contract concluded for a fixed term or an indefinite period should state the reason justifying the notice. For fixed-term contracts, this obligation has applied since 26 April 2023.
The requirement to state the reason is fundamental for assessing whether the termination was lawful. The employer must not only have genuine reasons for giving notice, but also formulate them clearly and present them in the declaration of notice. The reason should be specific, detailed and relate to the actual circumstances justifying the termination of the employment relationship.
The reason for notice must be included in the employer's declaration for fixed-term and open-ended contracts. Failure to state the reason breaches the law but does not make the notice invalid. However, the employee may appeal to the labour court on this ground
Failure by the employer to state the reason for notice breaches the applicable labour law, but does not automatically make the act invalid. Notice without a reason remains effective, but it is legally defective, which gives the employee grounds to appeal against the notice to the labour court.
The practical importance of the obligation to state the reason is very great, because labour courts examine closely whether the reasons given by the employer actually justify terminating the employment relationship. An unreliable, vague or untrue reason may result in the notice being found unlawful, with all the resulting financial consequences for the employer. If the employee is represented by a company trade union organisation, before giving notice the employer notifies it, in paper or electronic form, of the intended notice and its reason; the organisation may raise reasoned objections within 5 days, and the employer makes its decision after considering them or after that deadline has passed (Article 38 of the Labour Code).
- Prepare a detailed reason for notice based on facts
- Gather documents confirming the reasons for notice
- Draw up a written declaration of notice stating the reason
- Deliver the declaration to the employee in a way that makes it possible to prove receipt
- Keep a copy of the declaration and documents confirming delivery in the personnel file
Notice based on a medical certificate
Giving notice on the basis of an unfavourable medical certificate is a special legal situation that requires the employer to proceed very carefully. When an occupational medicine doctor finds contraindications to the employee performing a certain type of work, the employer is in a difficult legal position that requires balancing the interests of the business with the protection of the employee's rights.
The employer may not allow an employee to work without a valid medical certificate confirming that there are no contraindications to work in the given position (Article 229 § 4 of the Labour Code). The Labour Code expressly requires a transfer to other work where the employee shows symptoms indicating the development of an occupational disease (Article 230) or has become unable to do their current work as a result of an accident at work or an occupational disease (Article 231). In other cases, before giving notice, it is worth considering whether the employee can be transferred to other work or whether working conditions can be adapted to the medical recommendations.
An unfavourable medical certificate does not give the employer an automatic right to terminate the employment contract with notice. In the cases under Articles 230 and 231 of the Labour Code, the employer must transfer the employee to suitable work. In other situations, it is worth checking before giving notice whether a transfer to another position or adaptation of working conditions is possible
In the event of a dispute, the labour court examines whether the stated reason for notice was genuine and justified terminating the contract (Article 45 § 1 of the Labour Code). It is therefore worth documenting that the business has no positions suitable for the employee or that adapting working conditions is impossible or economically unjustified.
It is particularly important that the labour court assesses whether the notice was justified on the basis of all the evidence. In cases requiring specialist knowledge, the court may admit evidence from an expert medical opinion (Article 278 § 1 of the Code of Civil Procedure) and assess the employee's state of health and ability to perform work. This means that the employer must be prepared for its decision to be subject to detailed judicial review.
Severance pay on termination
Severance pay (odprawa pieniężna) is an important financial compensation for employees whose employment relationship is terminated for reasons not related to them. Severance pay is governed by the Act on special rules for terminating employment relationships with employees for reasons not related to employees, commonly called the Collective Redundancies Act.
The right to severance pay applies not only to employees dismissed in collective redundancies but also to employees dismissed individually, provided that the sole reason for terminating the employment relationship lies with the employer. Article 10 of the Act extends the severance pay rules to individual dismissals by employers with at least 20 employees (consolidated text of the Act: Journal of Laws (Dz.U.) 2026, item 1195), which is of great practical importance for employers.
Severance pay is also due in individual dismissals if the reasons for terminating the contract are not related to the employee. The amount depends on length of service and ranges from one to three months' pay. The employer must take this cost into account when planning dismissals
The amount of severance pay is strictly defined by law and depends on the employee's period of employment with the given employer. Employees employed for less than 2 years receive severance pay equal to one month's pay, employees with service of 2 to 8 years – two months' pay, and employees employed for more than 8 years – three months' pay. Severance pay may not exceed 15 times the minimum wage applicable on the day the employment relationship ends (Article 8(4) of the Act) – in 2026, PLN 72,090 (15 × PLN 4,806); from 1 January 2027, PLN 74,250 (15 × PLN 4,950).
| Length of service with the employer | Amount of severance pay | Legal basis | Notes |
|---|---|---|---|
| Less than 2 years | 1 month's pay | Article 8(1)(1) | Lowest severance pay |
| From 2 to 8 years | 2 months' pay | Article 8(1)(2) | Medium severance pay |
| More than 8 years | 3 months' pay | Article 8(1)(3) | Highest severance pay |
Employers must remember that the obligation to pay severance arises automatically once the statutory conditions are met and cannot be excluded or limited by the employment contract or the work regulations. Severance pay is an additional cost of dismissals that must be taken into account in the business's financial planning.
Compensation for unlawful notice
Compensation for unlawful notice terminating an employment contract is a basic tool protecting employees against arbitrary decisions by employers. Every employee, regardless of the type of employment contract, has the right to claim compensation if the labour court finds the notice unlawful or defective.
The general rule is that the employee may claim compensation through the courts in the event of unlawful notice. This right applies to employees on both fixed-term and open-ended contracts. The amount of compensation is set by the Labour Code: pay for a period of 2 weeks to 3 months, not lower than pay for the notice period (Article 47¹), and for a probationary contract – pay for the period until the contract was due to end (Article 50 § 1). When the employee resigns, the employer must also issue an employment certificate.
An employee may claim compensation for unlawful notice regardless of the type of employment contract. Instead of compensation, they may demand that the notice be declared ineffective or that they be reinstated (Article 45 § 1). The employer should assess the legal risk each time before giving notice
A special situation is shortening the notice period for reasons not related to the employee. Where the notice period is 3 months and the employer shortens it to 1 month, it must pay the employee compensation for the remaining part of the notice period. This compensation is mandatory and is due regardless of whether the employee suffers any actual loss.
The labour court sets the amount of compensation for unlawful notice within the limits of Article 47¹ of the Labour Code, taking into account the circumstances of the case. For specially protected employees (e.g. under Articles 39 and 177 of the Labour Code), the court, as a rule, cannot award compensation instead of reinstatement (Article 45 § 3), and a reinstated employee is entitled to pay for the whole period of being out of work (Article 47).
Situations in which notice is not permitted
The Labour Code provides for a number of situations in which the employer may not give notice terminating an employment contract, which is an important protection for employees in special personal and professional circumstances. These restrictions are intended to ensure job security at times when the employee is particularly exposed to the negative consequences of losing their job.
The first and very important group of restrictions is the protection of employees approaching retirement age. Article 39 of the Labour Code states that, as a rule, the employer may not give notice to an employee who is no more than 4 years away from reaching retirement age, if their period of employment enables them to acquire the right to a pension on reaching that age.
Employees close to retirement enjoy special protection against notice terminating their employment contract. Protection applies to people who are no more than 4 years away from retirement age and have the required length of service. Notice is possible only in exceptional circumstances
The second group of restrictions concerns the employee's temporary absence from work. Article 41 of the Labour Code prohibits giving notice during the employee's leave and during any other justified absence of the employee from work, if the period entitling the employer to terminate the contract without notice has not yet expired.
Particularly important restrictions apply to pregnant employees and employees on parenthood-related leave. The protection of pregnant employees and parents on such leave is provided for in Article 177 of the Labour Code. The protection also covers the period of the employee's illness – this is a justified absence, so the ban in Article 41 applies until the period entitling the employer to terminate the contract without notice has expired (Article 53), which is intended to ensure job security at difficult times in life.
- Employees close to retirement (no more than 4 years to retirement age)
- Employees on annual leave
- Employees during a justified absence from work
- Pregnant employees and employees on maternity leave
- Employees on sick leave (L4)
- Employees on paternity and parental leave (urlop rodzicielski)
An important exception to these restrictions is where the termination of the employment contract results from the declaration of the employer's bankruptcy or liquidation – in that case Articles 38, 39 and 41 and special provisions on protection against notice do not apply (Article 41¹). A serious breach of employee duties does not entitle the employer to give notice, but to terminate the contract without notice through the employee's fault (Article 52); the ban in Article 41 applies only to notice, and for a pregnant employee or an employee on maternity leave, termination without notice requires the consent of the company trade union organisation representing her (Article 177 § 1).
Release from the obligation to work
Releasing the employee from the obligation to work during the notice period is an important HR management tool that allows the employer to organise work flexibly during the transition period. It is particularly important where it is not advisable or possible for the employee under notice to continue working.
The condition for releasing the employee from the obligation to work is that notice terminating the employment contract has been given – by the employer or by the employee (Article 36² of the Labour Code). The release may cover the whole notice period or part of it, and the decision to use this option lies solely with the employer. The employee has no right to demand a release from work, nor can they refuse it.
A release from the obligation to work may be used only after notice terminating the employment contract has been given. The employee keeps the right to full pay for the whole period of the release. Pay is calculated in the same way as holiday pay (§ 5(2)(1) of the regulation of 29 May 1996, consolidated text: Dz.U. 2017, item 927)
The key rule is that the employee keeps the right to full pay for the whole period of release from the obligation to work. This pay is calculated in the same way as holiday pay, which means that the employee receives their pay without any reduction because no work is being done.
Releasing an employee from the obligation to work is of practical importance for employers, who can thus avoid potential conflicts in the workplace, protect confidential information or allow a smooth reorganisation of the team. At the same time, this solution protects the employee's financial interests, as they receive full pay despite having no obligation to work.
Practical example: An IT company gave a programmer three months' notice terminating his employment contract because of restructuring. Because the employee had access to sensitive client data, the employer decided to release him from the obligation to work for the whole notice period. For three months the employee received full pay without having to come to work.
Documenting the termination
Proper documentation of the termination process is crucial for protecting the employer's legal interests and for fulfilling obligations under labour law. Article 94(9a) of the Labour Code requires the employer to keep and store (in paper or electronic form) employee records and the personnel files of employees, which also include documents related to the end of employment.
The basic document in the termination process is the declaration of notice terminating the employment contract, which must meet all the formal requirements of the Labour Code. It should precisely identify the parties to the employment relationship and state the date of the declaration, the notice period and a detailed reason for the notice.
Documentation of the termination must be complete and kept in the employee's personnel file. It includes the declaration of notice, a copy of the employment certificate and all correspondence related to the termination of the employment relationship. The documents are kept in part C of the personnel file
A copy of the employment certificate (świadectwo pracy) issued must also be kept in the employee's personnel file. The employment certificate is a document confirming the end of the employment relationship and contains important information about the course of employment. The employer must issue the employment certificate on the day the employment relationship ends (Article 97 § 1 of the Labour Code) and keep a copy in accordance with the rules on employee records.
All correspondence between the employer and the employee concerning the termination of the employment relationship must also be kept in the personnel file. This includes, among other things, letters on arrangements related to the termination, correspondence on handing over duties and any appeals or objections by the employee.
- Draw up a written declaration of notice stating the reason
- Deliver the declaration to the employee with acknowledgement of receipt
- Prepare and issue the employment certificate on the day the employment relationship ends
- Keep a copy of the employment certificate in the personnel file
- Document all correspondence related to the notice
- Place all documents in part C of the employee's personnel file
Under the Regulation of the Minister of Family, Labour and Social Policy on employee records (consolidated text: Dz.U. 2026, item 474, § 3(3)), documents related to the end of employment must be kept in part C of the employee's personnel file. This organisation of records is important for transparency and access to information, especially in the event of court disputes.
