Unpaid leave (urlop bezpłatny) is a special institution of Polish labour law that allows the basic obligations of the employee and the employer to be suspended temporarily. While it lasts, the employee does not have to perform work and the employer does not have to pay remuneration. This does not, however, mean that the employee must stop all paid activity. The period of unpaid leave can be used for other employment, which raises a number of questions about the legal side of such a situation. Leave records, including unpaid leave, and employees' ZUS settlements are handled by our HR and payroll services.
The possibility of working for another employer during unpaid leave is particularly relevant in a dynamic labour market and with the growing popularity of flexible forms of employment. Employees increasingly look for opportunities to develop professionally, gain new experience or simply earn extra income. Unpaid leave can be an ideal solution for people who want to change their professional duties temporarily without giving up their current job.
Practical example: An employee of an IT company received an offer to take part in a 6-month project at another technology company. Instead of resigning from their current job, they decided to apply for unpaid leave for the duration of the project. This allowed them to gain new professional experience while keeping the option of returning to their original workplace.
Unpaid leave is granted at the employee's request submitted on paper or electronically, but the employer has the right to refuse it. Granting unpaid leave requires matching declarations of intent from both parties to the employment relationship. As a rule, the period of this leave does not count towards the period of employment on which employee entitlements depend
The legal rules on unpaid leave are set out primarily in the Labour Code (Kodeks pracy), which lays down the basic principles for granting it and its legal effects. Particularly important are Article 174 and Article 174¹ of the Labour Code, which regulate different aspects of this institution. Knowing these provisions is essential to understand the possibilities and limits of working during unpaid leave.
Characteristics of unpaid leave
As an institution of labour law, unpaid leave has specific features that distinguish it from other forms of absence from work. Under Article 174 § 1 of the Labour Code, the employer may grant the employee unpaid leave at the employee's request submitted on paper or electronically. The key word here is "may", which means that the employer has no obligation to grant such leave and may refuse without giving a reason. Quite different rules apply, for example, to annual leave during the notice period.
Since 27 January 2026 the provision refers to a request submitted on paper or electronically (previously – a written request). The Labour Code does not make leave granted on a request in another form invalid, but keeping to this form is strongly recommended in practice. Submitting the request on paper or electronically helps avoid doubts about whether it was submitted, what it said and how long the planned leave was to last. The employer should also reply in writing, so that the parties can define precisely the terms of the unpaid leave.
The main features of unpaid leave are:
- The employer's discretion whether to grant it
- Suspension of the employee's obligation to perform work
- Release of the employer from the obligation to pay remuneration
- Preservation of the legal bond between the parties to the employment relationship
- No effect on the continuity of the employment relationship
Granting unpaid leave involves an agreement between the employer and the employee, because both parties must make matching declarations of intent. The employer is bound by the general principles of labour law, in particular equal treatment of employees and non-discrimination. Declarations of intent should be interpreted on the basis of Article 65 of the Civil Code
The essence of unpaid leave is the suspension of the basic obligations arising from the employment relationship. The employee is released from the obligation to work and the employer from the obligation to pay remuneration. This does not mean that the employment relationship is terminated – the legal bond between the parties continues, but in a limited scope. The employment relationship continues, but its content is temporarily suspended.
| Type of leave | Effect on length of service | Remuneration | Obligation to grant |
|---|---|---|---|
| Unpaid leave (Article 174 of the Labour Code) | Does not count | None | Discretionary |
| Unpaid leave (Article 174¹ of the Labour Code) | Counts | None | Requires an agreement |
| Annual leave | Counts | Full | Mandatory |
| Sick leave | Counts | Sick pay or sickness benefit | Mandatory |
Note in particular that, under Article 174 § 2 of the Labour Code, the period of unpaid leave does not count towards the period of employment on which employee entitlements depend. This has significant practical consequences, because unpaid leave has a negative effect both on acquiring certain entitlements and on determining their scope, where that scope depends on the employee's length of service.
Procedure for granting unpaid leave
The procedure for granting unpaid leave starts with the employee submitting a request. The request should specify precisely the period for which the employee wants unpaid leave and, optionally, the reason for it. Although giving a reason is not mandatory, it may influence the employer's decision, especially where the leave is to serve development or training purposes.
Submitting the request and granting unpaid leave involves the following stages:
- The employee prepares a written request
- The exact length of the leave is specified
- The reason for the leave is given (optional)
- The request is submitted to the employer sufficiently in advance
- The employer considers the request
- A written decision granting or refusing the leave is issued
- The detailed terms of the leave are agreed
- The decision is documented in the employee's personnel file
When considering a request for unpaid leave, the employer should be guided not only by its own interests but also by the principles of equal treatment of employees. It may not refuse leave on discriminatory grounds or in a way that would breach the principle of equal treatment. At the same time, the employer has the right to take into account the organisational needs of the workplace and may refuse leave if granting it could adversely affect the running of the business.
Where unpaid leave lasts longer than 3 months, the parties may provide that the employee can be recalled from leave for important reasons. Such a clause must be agreed by both parties and should be set out when the leave is granted. Important reasons may include sudden organisational needs of the employer or a change in the employee's personal circumstances
Granting unpaid leave requires particular care in wording the declarations of intent. If the employer granted unpaid leave at the employee's request, but at the same time the parties agreed that the employee would perform part of their existing duties during that time, then in reality no unpaid leave was granted. The common intention of the parties was for the employee to continue doing the same work for the employer, only in a limited scope.
Example of improper unpaid leave: A company in financial difficulty "grants" its employees unpaid leave but requires them to work reduced hours. This is not genuine unpaid leave and may be treated as circumventing the labour law provisions on paying remuneration.
The Supreme Court (Sąd Najwyższy) has held that no unpaid leave agreement is concluded if the common intention of the parties is for the employee to continue doing the same work for the employer, but in a limited scope (Supreme Court judgment of 12 August 2004, III PK 42/04). Unpaid leave is granted only at the employee's request (Article 174 § 1 of the Labour Code), so "leave" imposed for economic reasons while the employee continues to work, even reduced hours, may be treated as circumventing labour law.
Options for working for another employer
How unpaid leave is used is left entirely to the employee. This means the employee may use this leave for any purpose, including work under an employment relationship with an employer other than the one granting the leave. The employee may also take up other paid activity under a civil-law contract, without needing the consent of their current employer.
Unpaid leave can be used for:
- Employment with another employer under an employment contract
- Work under civil-law contracts
- Running their own business
- Freelance projects
- Internships and work placements
- Continuing education or vocational training
- Rest and recovery
Such legal relationships with other entities, whether an employment relationship or a civil-law relationship, do not affect the legal bond between the employer granting the unpaid leave and the employee. The employment relationship with the current employer remains suspended but is not terminated. The employee retains all rights arising from this employment relationship, which they will be able to exercise after returning from unpaid leave.
An employee on unpaid leave may freely take up work with other employers or run their own business. This does not require the consent of the current employer that granted the unpaid leave. The only limitation may be non-compete clauses in the employment contract, which may also apply during unpaid leave
An exception to the freedom to use unpaid leave is provided for in Article 174¹ of the Labour Code. This provision covers a special situation in which, with the employee's consent given on paper or electronically, the employer may grant unpaid leave so that the employee can work for another employer for the period set out in an agreement concluded between the employers. This form of unpaid leave is tripartite and requires all the parties involved to cooperate.
Example of leave under Article 174¹ of the Labour Code: A consulting firm has a surplus of IT specialists, while a partner company needs support with a project. The companies conclude an agreement on the temporary secondment of an employee. The employee gives written consent to such unpaid leave, which allows them to work for the partner while keeping all their entitlements with the current employer.
An important advantage of unpaid leave granted under Article 174¹ of the Labour Code is that the period of this leave counts towards the period of employment on which employee entitlements with the current employer depend. This favourable rule distinguishes this institution from ordinary unpaid leave granted under Article 174 of the Labour Code, where the leave period does not count towards length of service.
Working for the same employer under different employment relationships
A special situation that needs to be discussed separately is working for the same employer that granted the unpaid leave, but under a different employment relationship. Taking unpaid leave and working for the same employer under one and the same employment relationship at the same time is not possible. Such a situation would show that the leave was a sham, because unpaid leave by its nature suspends the employee's obligation to perform their duties.
However, a distinction must be made between taking unpaid leave and working under the same employment relationship, and a situation in which an employee is on unpaid leave under one employment relationship while working for the same employer under another employment relationship. Where an employee has several employment relationships with the same employer, they are treated separately.
The Supreme Court has accepted that unpaid leave may be granted under one employment relationship for the period of parallel employment with the same employer on a different basis (in that case – by appointment), provided that the parties agree to this (Supreme Court judgment of 18 November 2014, II PK 5/14). This also applies where the employer grants unpaid leave to an employee working under an employment contract in connection with employing them on the basis of election
A practical example of this situation is an employee of a municipal office who is elected head of that municipality (wójt). As a result of the election, an employment relationship arises between that person and the municipal office as the employer. This creates a situation in which the same person has two employment relationships with the municipal office: one based on an employment contract and the other based on election. To be able to hold the office of wójt, the employee was granted unpaid leave under the first employment relationship for the term of office.
Typical multiple-relationship situations include:
- An office employee elected wójt
- A teacher appointed school head
- A court employee appointed judge
- A university employee elected rector
- An employee of a cultural institution appointed its director
In such cases, the intention to suspend the existing employment relationship may follow from the conduct of the parties. Article 174 § 1 of the Labour Code refers to a request submitted on paper or electronically, but does not make leave granted without keeping to this form invalid. If an employee agrees to be employed on the basis of election by the employer with which they have an employment contract, they thereby express the intention to suspend the rights and obligations that make up the content of the existing employment relationship between the parties.
Legal effects of unpaid leave on employee entitlements
The period of unpaid leave has significant consequences for employee entitlements, which follows from Article 174 § 2 of the Labour Code. Under this provision, the period of unpaid leave does not count towards the period of employment on which employee entitlements depend. This means that unpaid leave – although it does not interrupt the employment relationship – has a negative effect on the accrual of length of service.
The effect of unpaid leave on various employee entitlements is as follows:
| Entitlement | Effect of unpaid leave | Consequences |
|---|---|---|
| Annual leave | The period does not count towards length of service | Later entitlement to longer leave; after unpaid leave of at least 1 month, leave in the year of return is calculated proportionally (Article 155² of the Labour Code) |
| Retirement severance pay | The period does not count towards length of service | Lower severance pay |
| Long-service allowance | The period does not count towards length of service | Later entitlement to the allowance |
| Jubilee award | The period does not count towards length of service | Later entitlement date |
| Notice period | The period does not count towards length of service | May affect the length of notice |
Although the employment relationship continues during unpaid leave, the period of this leave does not count towards the period of employment on which employee entitlements depend. This has a negative effect both on acquiring certain entitlements and on determining their scope, where that scope depends on the employee's length of service. Unpaid leave does not share the features of non-performance of work that apply to sick leave or annual leave. How length of service translates into days off is shown in our article on annual leave entitlement.
Unpaid leave is a time of a kind of suspension of the employment relationship, which means that the employee does not acquire entitlements related to length of service during this period. This applies, among other things, to the right to annual leave, severance pay, long-service allowances and other benefits that depend on the period of employment. After returning from unpaid leave, the employee continues to acquire entitlements from the moment they resume work
An exception to this rule is provided for in Article 174¹ of the Labour Code, which covers unpaid leave granted so that the employee can work for another employer under an agreement between the employers. In this case, the period of unpaid leave counts towards the period of employment on which employee entitlements with the current employer depend. This favourable solution is meant to encourage employers to cooperate on the temporary secondment of employees.
Example of calculating entitlements: An employee who has worked for 5 years takes 12 months of unpaid leave. After returning to work, their length of service is still 5 years, which means they will have to work for another 12 months to acquire the entitlements of employees with 6 years of service.
A special situation is unpaid leave granted in connection with employment on the basis of election. An employee on unpaid leave in connection with an election has the right to return to work in a position equivalent in terms of pay if they report their return within 7 days of the end of the elected employment relationship (Article 74 of the Labour Code). Whether the period of such leave counts towards length of service depends on special provisions (Article 174 § 4 of the Labour Code).
Limitations and obligations during unpaid leave
Although an employee on unpaid leave has broad freedom in how they use this time, certain limitations and obligations still apply to them. Above all, despite the suspension of the basic obligations arising from the employment relationship, the employee remains bound to the employer by a legal bond. This means that some obligations, especially those of loyalty, may still apply.
The main limitations and obligations during unpaid leave include:
- Loyalty to the employer
- Compliance with non-compete clauses (if agreed)
- Not disclosing trade secrets
- Not damaging the employer's good name
- Refraining from actions that harm the employer's interests
- Notifying a change of home address
- Readiness to return if recalled from leave (if provided for)
Non-compete clauses in the employment contract may be an important limitation. If the employment contract contains a non-compete clause, it may also apply during unpaid leave unless the parties decide otherwise. This means that the employee may not engage in activity competing with their employer even while on unpaid leave. Breaching such a clause may lead to termination of the employment contract without notice through the employee's fault.
An employee on unpaid leave is still subject to obligations arising from loyalty to the employer. They may not take actions that harm the employer's interests, disclose information that is a trade secret or breach other special obligations. Non-compete clauses in the employment contract may continue to apply during unpaid leave
During unpaid leave the employee is not obliged to remain available for work or to respond to the employer's instructions. The only exception may be where the parties have provided for the possibility of recalling the employee from unpaid leave for important reasons. Such a clause may be agreed only for unpaid leave lasting longer than 3 months and requires the consent of both parties.
Example of a breach of obligations: An employee of a marketing firm on unpaid leave takes up work at a competing agency and uses their current employer's client base. Such conduct breaches the duty of loyalty and may lead to termination of the employment contract without notice through the employee's fault.
The employer may not unilaterally recall the employee from unpaid leave unless this was provided for in the agreement granting the leave. Even where such an option has been agreed, a recall may take place only for important reasons, which should be interpreted restrictively. Important reasons may include sudden organisational needs of the employer that could not have been foreseen when the leave was granted.
Special cases of unpaid leave
Special provisions concerning certain groups of employees regulate unpaid leave in a partly different way from the Labour Code. The differences consist mainly in requiring employers, in certain situations, to grant unpaid leave or to count its duration towards the period on which employee entitlements depend.
Special rules apply to the following groups and situations:
- Members of temporary (receivership) management boards of banks
- People directed to work on combating an epidemic
- Employees seconded to work in international organisations
- Members of the civil service corps
- Employees of the public finance sector
- Academic teachers
- Healthcare employees
Special rules apply, among others, to members of temporary management boards of banks – at their request submitted in accordance with Article 174 § 1 of the Labour Code, they are granted unpaid leave for the period of holding the post, and this period counts towards the period of employment (Article 146 of the Banking Law). Similarly, the current employer of a person directed by decision to work on combating an epidemic is obliged to grant them unpaid leave for the period specified in the decision, and this period counts towards the period of employment with that employer (Article 47(8) of the Act on preventing and combating infections and infectious diseases in humans).
People serving in voluntary basic military service and people called up for rotational territorial military service are entitled to unpaid leave for the period of service (Article 304(1) and Article 305(1) of the Homeland Defence Act). In such cases the employer must grant unpaid leave, and its duration may count towards the period of employment on which employee entitlements depend – in rotational territorial service the employee retains all rights under the employment relationship except the right to remuneration (Article 305(3))
Provisions on unpaid leave for care purposes are also particularly important. Although the basic rules are set out in the Labour Code, some special provisions provide more favourable solutions for employees, for example as regards counting the leave period towards length of service or guaranteeing a return to the same position.
Example of special leave: A doctor employed at a hospital receives a decision directing them to work on combating an epidemic at another healthcare provider. The current employer must grant them unpaid leave for the period specified in the decision, and the leave period will count towards the period of employment with that employer, which ensures the continuity of employee entitlements.
Practical aspects of using unpaid leave
Using unpaid leave in practice to take up work for another employer requires careful planning and consideration of various legal and organisational aspects. An employee planning to do this should first of all carefully analyse their employment contract for possible restrictions, especially non-compete clauses.
Key factors to consider before applying for unpaid leave:
- Reviewing the employment contract for restrictions
- Assessing financial stability during the period without pay
- Checking social insurance conditions
- Setting specific start and end dates of the leave
- Preparing a plan for returning to the current job
- Considering the effect on employee entitlements
- Consulting the HR department about procedures
It is also important to plan the length of unpaid leave properly. It should match the nature of the planned employment with the other employer. If the employment is to be temporary, for example as part of a project, the unpaid leave should cover the entire duration of that project. In the case of employment for an indefinite period, the employee should consider whether it would be better to terminate the existing employment relationship.
Before applying for unpaid leave, the employee should make sure that their employment with the other employer is confirmed (for example by a signed contract). Without such confirmation, the employee may end up without any source of income for the entire period of unpaid leave. It is also worth checking whether the new employer is ready to accept the temporary nature of the employment
Social insurance is another important aspect. During unpaid leave the employee is not covered by mandatory social insurance under the employment relationship with the employer granting the leave. If they take up work for another employer, they will be insured on that basis. This may matter for the continuity of insurance and the amount of future benefits.
Returning to work after unpaid leave is equally important. The employment relationship continues throughout the leave, so the employee returns to work on the terms of their employment contract. For ordinary unpaid leave the Labour Code does not provide a separate guarantee of return to the same or an equivalent position (such a guarantee exists, for example, for an employee returning from parental leave (urlop wychowawczy) – Article 186⁴ of the Labour Code), but changing the terms of work requires an agreement between the parties or a notice of change of terms (Article 42 of the Labour Code).
Procedures and documentation
Proper documentation of unpaid leave is crucial to avoid disputes between the parties to the employment relationship. The request for unpaid leave should be submitted in writing and contain all relevant information about the planned leave. It is particularly important to specify the leave period precisely, as this may matter for settling various benefits and entitlements.
When granting unpaid leave, the employer should also issue a written decision confirming consent to the leave and setting out its terms. It is worth including in this decision information about the legal effects of unpaid leave, in particular that the leave period will not count towards the period of employment on which employee entitlements depend.
Documentation of unpaid leave should include:
- The employee's request for unpaid leave stating the period and, optionally, the reason
- The employer's decision granting or refusing the leave
- Any agreement on special terms of the leave
- Documents confirming the start and end of the leave
- Correspondence relating to any extension or shortening of the leave
- Confidentiality and non-compete declarations
- Handover records prepared before the leave starts
- Documents relating to the return to work after the leave
The employer should keep a record of unpaid leave periods for the purpose of settling employee entitlements. It is particularly important to note these periods in the HR records, so that the employee's length of service can be calculated correctly when determining future entitlements. Errors in the records may lead to disputes about the amount of severance pay or the length of annual leave
For unpaid leave granted under Article 174¹ of the Labour Code, it is also necessary to document the agreement between the employers and the employee's written consent to work for another employer. Such documentation is particularly important because of the different legal effects of this type of unpaid leave. Another situation in which the employer decides on leave is described in when an employer can order an employee to take leave.
Example of documentation: An IT company documents unpaid leave granted to a programmer to take part in a 6-month project at a business partner. The documentation includes the employee's written request, the decision granting the leave, the agreement with the partner company, a confidentiality declaration and a return-to-work schedule with a handover plan.
