Over the last decade the size of the shadow economy in Poland has decreased sharply. This does not mean, however, that the problem no longer exists although estimates of its size vary greatly according to different sources. Currently, it is said that the shadow economy represents between 10% and 20% of the national economy, employing between 1 and 2 million Polish workers. On 13 May, Parliament adopted a measure to enable combatting the shadow economy employment relationship. The measure requires employers to deliver a written employment contract before work actually starts. The measure now has to receive Senate approval.
The amendment is trying to avoid the ‘first day syndrome’ that means employers can avoid having to formalize the employment relationship. If the labor inspectorate calls round then employers just have to say it is the employee’s first day at work and that the employment contract is in the post. All this was possible because employers didn’t have to deliver the employment contract before the end of the worker’s first day at work. The new change means the employment contract has to be...
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