Domestic Society
14:53 9 August 2024
Post by: WBJ

Confederation Lewiatan Warns of Impacts of Equalizing Contracts

Confederation Lewiatan Warns of Impacts of Equalizing Contracts
Source: Photo by Alex Kotliarskyi on Unsplash

Poland's labor market may be on the brink of a significant transformation as proposed changes to equalize different types of employment contracts gain momentum. This potential revolution has sparked a debate across the country, with the Confederation Lewiatan, a major employers' association, raising concerns about the possible negative consequences for businesses and the economy.

The proposal aims to harmonize the legal status of various employment contracts, such as full-time employment contracts and civil contracts (commonly known as "umowa zlecenie" and "umowa o dzieło"). The government argues that this move is necessary to ensure fair treatment for all workers and to eliminate the disparities in job security, social benefits, and taxation that currently exist between these types of agreements.

However, the Confederation Lewiatan has warned that such changes could lead to increased labor costs for employers, particularly for small and medium-sized enterprises (SMEs), which rely heavily on flexible contract arrangements. The organization fears that equalizing contracts could reduce the flexibility of the labor market, potentially leading to job losses or a slowdown in hiring as companies grapple with higher employment costs.

Moreover, the Confederation cautions that the proposed changes could discourage investment in Poland, as the increased costs and reduced flexibility might make the country less attractive to domestic and foreign investors.

(300gospodarka


work
confederation lewiatan
labor market
employers
contracts

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