In companies with high staff turnover or a large headcount, different departments are often responsible for different stages of the hiring process. This can lead to organisational mistakes where an employee is registered with ZUS (Social Insurance Institution) before signing the employment contract, or even without signing it at all. Such a situation has a number of legal and administrative consequences that require an immediate response from the employer.
Example of a typical situation: The HR department prepared all the documents for a new employee who was due to start work on Monday. The ZUS registration was sent automatically, but the employee did not turn up for work and did not sign the contract. The company now has to correct the incorrect registration to avoid problems with ZUS.
The wrong order of steps in the hiring process can have various causes – from a simple oversight, through communication errors between departments, to problems with how the HR department is organised. Whatever the cause, as a rule the mistake needs a prompt correction in line with the applicable law.
The correct order of hiring an employee
Under Polish labour law, the hiring process must follow a set order that ensures the employment relationship is established correctly. This is the correct sequence of steps:
- Holding the job interview and deciding to hire
- Preparing the employment contract with all the required elements
- Signing the employment contract by both parties
- Allowing the employee to start work on the start date set in the contract
- Registering the employee with ZUS on the ZUS ZUA form (the registration form for social and health insurance) within 7 days of the date the employment relationship is established
- Settling contributions every month on ZUS DRA forms (the monthly contribution return)
Article 26 of the Labour Code (Kodeks pracy) provides that the employment relationship is established on the date set in the contract as the start date of work. This means that if no contract was concluded at all, no employment relationship has been established
The Labour Code clearly states that an employment contract should be concluded in writing. If for some reason it was not concluded in writing, the employer must, before allowing the employee to start work, confirm to the employee in writing all the arrangements concerning the parties, the type of contract and its terms.
An employment contract can be signed even a month before the work actually starts. This practice is fully permissible and is often used for seasonal work or when the employee needs time to serve notice under a previous contract
The key point is that an employee cannot be allowed to work without a signed employment contract or a written confirmation of its terms. It also means that a person with whom no contract was concluded at all and who has not started work is not yet the company's employee under labour law and, consequently, is not subject to compulsory social insurance.
Consequences of allowing someone to work without a contract
Allowing an employee to work without a signed employment contract is a serious breach of the Labour Code. An employer who fails to confirm the terms of the contract in writing before the employee starts work faces severe financial penalties. Contributions also raise questions for business owners themselves, for example when switching from preferential to standard ZUS contributions.
The main consequences are:
- A fine of PLN 2,000 to PLN 60,000
- A possible inspection by PIP (National Labour Inspectorate)
- Problems with the employee's accident insurance
- Complications in settling taxes and ZUS contributions
- The risk of compensation claims from the employee
An employer who fails to confirm the terms of the employment contract in writing before the employee starts work faces a fine of PLN 2,000 to PLN 60,000 (from 8 July 2026; previously PLN 1,000 to PLN 30,000). The amount depends on the seriousness of the breach and the circumstances of the case
Example of the consequences: A construction company hired a worker without signing a contract. A PIP inspection revealed that the worker had been working for 2 weeks without being formally employed. The company received a fine of PLN 15,000 and had to pay all the outstanding contributions retroactively.
It is worth stressing that the Labour Code does not rule out concluding an employment contract orally. Even then, however, the employer has an absolute obligation to confirm to the employee in writing all the arrangements concerning the parties, the type of contract and its terms. Only once this requirement is met can the employee be allowed to start work.
Registration obligations towards ZUS
Every contribution payer has specific obligations under the Social Insurance System Act (ustawa o systemie ubezpieczeń społecznych). The main obligation is to register on time everyone who is subject to social insurance and to settle contributions regularly.
| Document | Deadline | Purpose |
|---|---|---|
| ZUS ZUA | 7 days from the date the insurance obligation arises | Registration for insurance |
| ZUS DRA | By the 15th (payers with legal personality) or the 20th (other payers) of the following month | Monthly contribution return |
| ZUS ZWUA | 7 days from the date the insurance title ends | Deregistration from insurance |
| ZUS RCA | Together with ZUS DRA for the same month | Monthly individual contribution report |
The employer must register the employee with ZUS within 7 days of the date the employment relationship is established, that is, from the start date of work set in the employment contract. The registration is made once on the ZUS ZUA form, and there is no need to repeat it in the following months as long as the contract continues without a break.
In addition to registering the employee, the employer must file monthly ZUS DRA returns. This return shows the contributions due for social and health insurance, while the individual ZUS RCA reports filed with it show the contribution base and contributions for each person
Failure to meet the registration and settlement obligations may lead ZUS to apply a range of sanctions and enforcement measures. The most important are:
- Liability for a petty offence (a fine of up to PLN 46,000, Article 98 of the Social Insurance System Act) for late or incorrect registrations
- Default interest charged on unpaid contributions
- An additional fee for late payments
- Enforcement proceedings to recover the amounts due
- Security over the payer's assets through a mortgage or a tax pledge
Example of a correct registration: An employee was hired on 24 June and the employer registered them for insurance on 28 June on the ZUS ZUA form with insurance title code 0110xx. This is correct, because the 7-day deadline was not exceeded
Legal basis of social insurance
Under Article 13 of the Social Insurance System Act, certain categories of people are subject to compulsory pension, disability, sickness and accident insurance during specific periods. The most important are:
- Employees – from the date the employment relationship is established until the date it ends
- Outworkers (praca nakładcza) – from the date set in the contract as the start date of the work
- Contractors under a contract of mandate (umowa zlecenia) – from the date set in the contract as the start date of its performance until the date it is terminated or expires
The key point is that an employee becomes insured only from the date the employment relationship is established. If no employment relationship was established because no contract was concluded, registering that person with ZUS is incorrect
This rule clearly shows that the basis for social insurance cover is the actual establishment of the employment relationship, not merely the intention to hire or the preparations for it. This means that every ZUS registration of a person with whom no employment relationship was established is a breach of the rules and needs to be corrected immediately.
How to correct an incorrect registration
If a person was incorrectly registered with ZUS before signing the employment contract, the contribution payer must promptly deregister that person from insurance. The correction must be made from the same date as the original registration.
A person registered incorrectly is deregistered on the ZUS ZWUA form (the deregistration form). Where there are no grounds for insurance because the employment contract was not signed, the correct deregistration code is 600, meaning "other reason for deregistration".
The correction procedure involves the following steps:
- Identifying the problem and establishing the dates of the incorrect registration
- Preparing the ZUS ZWUA form with the appropriate deregistration code
- Entering a deregistration date identical to the date of the original registration
- Filing the correction with ZUS as soon as possible
- Archiving the documents relating to the correction
Example of a correction: Ms Anna was due to start work on 5 May 2025 but did not turn up and did not sign the contract. The employer mistakenly registered her for insurance with code 0110xx on the ZUS ZUA form. In this situation, she should be deregistered on the ZUS ZWUA form with the deregistration date of 5 May 2025 and code 600
Practical example: An IT company registered a programmer with ZUS as of 1 March, anticipating his employment. However, the candidate received a better offer and did not sign the contract. The HR department must complete the ZUS ZWUA form with the deregistration date of 1 March and code 600 to cancel the incorrect registration.
Situations that need particular attention
In practice, there are different variants of situations where the ZUS registration was made before the contract was signed. Each requires an individual approach and the right correction procedure.
| Situation | Action | Deregistration code |
|---|---|---|
| The candidate did not turn up for work | Deregistration as of the registration date | 600 |
| Delayed start of work | Deregistration + new registration | 600 |
| Withdrawal from employment | Deregistration as of the registration date | 600 |
| Change of the start date of work | Deregistration + new registration | 600 |
A common situation is when the employee's start of work is delayed for personal reasons. In that case, if the employee has already been registered with ZUS for the original start date, they must be deregistered and then registered again for the actual start date of work.
Example of a delay: Mr Jan was due to start work on 12 May 2025 and was registered with ZUS for that date. Because of personal problems he can only start on 19 May. He should be deregistered as of 12 May on the ZUS ZWUA form with code 600, and then registered again as of 19 May after signing the contract
Another situation is when the candidate withdraws completely from taking up the job. In that case, deregistration with the appropriate code is enough, without a new registration. It is important that the deregistration date is identical to the date of the original registration, which means that the ZUS system will show no period of insurance for that person.
Consequences of not correcting the registration
If the contribution payer does not correct the incorrect registration, this may lead to a number of negative consequences both for the employer and for the person registered by mistake.
ZUS may call on the payer to correct the registration and settlement documents when it notices irregularities in the returns filed. The employee may also ask for a correction if they notice incorrect entries on their ZUS account or during a visit to a medical facility. We can prepare employees' ZUS registrations and their corrections on the payer's behalf through our HR and payroll services.
Possible consequences of not making a correction:
- A fine for a petty offence (Article 98 of the Social Insurance System Act) for incorrect registrations
- Inspection proceedings and further sanctions
- Problems with settling contributions in the following months
- Complications for the person registered by mistake
- The need to pay outstanding contributions
If the payer does not respond to calls for a correction, ZUS may start inspection proceedings. The result may be the payer's liability for a petty offence (a fine) and an obligation to rectify all irregularities
Leaving an incorrect registration in the system for a long time may also cause problems with settling contributions. If in the following months the payer does not report contributions for the person registered by mistake, ZUS may ask for explanations and apply further sanctions. When deregistering, it also helps to know when to use ZUS code 30 00.
Impact on contribution settlements
An incorrect ZUS registration also affects the monthly contribution settlements. If a person was registered but did not sign the contract and does not work, the payer has no grounds to report contributions for them in the monthly returns.
Not reporting contributions for a registered person may raise ZUS's suspicions and lead to further inspections. That is why it is so important to respond quickly to errors of this kind and correct them immediately.
If the correction is made after the monthly returns have been filed, it may also be necessary to correct those returns in order to remove all traces of the incorrect insurance from the system.
Preventing errors in the hiring process
To avoid incorrect ZUS registrations, it is worth introducing proper control procedures in the hiring process. This is particularly important in companies with high staff turnover or a large headcount.
Basic rules for preventing errors:
- Appointing one person responsible for the whole hiring process
- Introducing a double-check system before registration with ZUS
- Keeping a register of signed employment contracts
- Regular training for HR staff
- Introducing communication procedures between departments
A good practice is to keep a checklist for each new employee containing all the necessary steps of the hiring process. This helps to avoid mistakes and ensures that all actions are carried out in the right order
Example of good practice: A logistics company introduced a system in which the ZUS registration can only be sent after the signed employment contract has been scanned into the system. As a result, the number of premature registrations fell significantly.
The role of IT systems
Modern IT systems can make the hiring process much easier and reduce the risk of errors. Many HR and payroll programmes can automatically generate ZUS documents based on the employment contracts entered.
Key functions of IT systems:
- Automatic generation of registration forms
- Monitoring of filing deadlines
- Checking that the data is correct before sending
- Archiving of all documents
- The ability to make corrections quickly
However, even the best system cannot replace proper procedures and human checks. It is important that HR staff are properly trained and aware of the consequences of their actions.
