Remuneration regulations - what mistakes should not be made?

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The remuneration regulations should set out the terms of remuneration for work and the award of other work-related benefits.

Who is required to establish the remuneration regulations?

The employer's obligations in terms of determining the remuneration conditions depend, inter alia, on the number of employees, i.e .:

  1. An employer who employs at least 50 employees, not covered by the corporate collective labor agreement or the multi-enterprise collective labor agreement, determines the terms of remuneration for work in the remuneration regulations.

  2. An employer who employs less than 50 employees, not covered by the corporate collective labor agreement or the multi-enterprise collective labor agreement, determines the terms of remuneration for work in the remuneration regulations.

  3. An employer who employs at least 20 and less than 50 employees, not covered by the corporate collective labor agreement or the multi-enterprise collective labor agreement, determines the terms of remuneration for work in the remuneration regulations, if the workplace trade union organization requests its determination.

Important!

Payroll regulations:

  • is valid until the employees are covered by the corporate collective labor agreement or the multi-enterprise collective labor agreement establishing the terms of remuneration for work and awarding other work-related benefits to the extent and in a manner enabling the determination, on its basis, of individual terms and conditions of employment contracts;
  • is determined by the employer;
  • if a company trade union operates at a given employer, the employer shall agree on the remuneration regulations with it;
  • it enters into force two weeks after it is made known to employees, in the manner adopted by a given employer.

Remuneration regulations - the most common mistakes

  1. Bad procedure for determining the remuneration regulations, e.g. introducing the remuneration regulations without a prior opinion of trade unions, which have 30 days to adopt a common position;

  2. Referring to non-binding regulations, i.e. introducing provisions regarding non-binding financial penalties;

  3. Detailed determination of the right to benefits in the regulations, which are regulated by law and which the employer has no influence on, e.g. a detailed indication of the amount and rules of payment of amounts due in the event of sickness and parenthood, stating the benefit periods, periods of maternity and parental leave, etc., which results in the need to update the remuneration regulations with each change in the law.

    The correct provision should read as follows: “An employee is entitled to remuneration for the period of incapacity for work specified in Art. 92 of the Labor Code for a total period of 33 days in a calendar year, and in the case of an employee who has reached 50 years of age, for a period of 14 days in a calendar year ”;

  4. Introducing illegal and therefore invalid provisions in the remuneration regulations, e.g. introducing fines not provided for in Art. 108 of the Labor Code, which is an offense subject to a fine of up to PLN 30,000.

    The following wording will be correct: "The employee is financially liable for damage caused to the employer's property in accordance with the principles set out in Section V of the Labor Code" ";

  5. Depriving an employee of the right to remuneration for overtime work or work on Sundays and public holidays. Doing so is an offense and may result in a fine of up to PLN 30,000.

    The following wording will be correct: “For overtime work and work on Sundays and public holidays, the employee is entitled to remuneration and an allowance in the amount specified in Art. 151 of the Labor Code ";

  6. Too general indication of the legal basis for remuneration components, the amount of which results from legal provisions and which the employer does not intend to establish more favorably, which may result in conflicts between the employee and the employer.

    The correct entry will read as follows: “An employee is entitled to a night work allowance in the amount specified in Art. 1518 of the Labor Code "";

  7. Unnecessary rewriting of the Labor Code and other acts, creating the risk of rewriting the acts in error or imprecise;

  8. Employment discrimination, such as making the award of additional cash benefits conditional on the employee meeting certain conditions.

    Pursuant to Art. 183a of the Labor Code:
    § 1 Employees should be treated equally in terms of entering into and terminating the employment relationship, terms of employment, promotion and access to training in order to improve professional qualifications, in particular regardless of sex, age, disability, race, religion, nationality, political beliefs, affiliation trade union, ethnic origin, religion, sexual orientation, as well as, regardless of employment for a fixed or indefinite period, or full-time or part-time.
    § 2 Equal treatment in employment means non-discrimination in any way, directly or indirectly, for the reasons set out in point 1.
    § 3 Direct discrimination exists when an employee for one or more reasons specified in § 1 was, is or could be treated in a comparable situation less favorably than other employees.
    § 4 Indirect discrimination exists when, as a result of an apparently neutral decision, the applied criterion or the action taken, there are or could occur unfavorable disproportions or a particularly unfavorable situation in terms of entering into and terminating the employment relationship, terms of employment, promotion and access to training in order to improve professional qualifications in relation to all or a significant number of employees belonging to the group distinguished due to one or more of the reasons specified in § 1, unless the decision, criterion or action is objectively justified due to the lawful goal to be achieved, and the means used to achieve this goal they are appropriate and necessary.

    Pursuant to Art. 183c of the Labor Code, employees have the right to equal remuneration for equal work or work of equal value. The remuneration includes all components of the basic salary and all other cash and non-monetary benefits received by the employee in connection with his work, e.g. private medical care, additional insurance, work tools such as: telephone, computer, car, cash severance pay.

    Other terms that need to be defined are:
    - identical work, ie the same in terms of the type of qualifications necessary for their performance, the conditions of their performance and the quantity and quality of the work performed;
    - jobs of equal value require comparable qualifications from employees, confirmed by relevant documents and / or professional practice, with the emphasis that they must be closely related to the work in a given position, and also have a similar degree of responsibility, as well as physical and mental effort.

    The employer may differentiate the remuneration of employees in two situations:
    - when the employer introduces an objective criterion that is relevant to the employer's needs, e.g. mobility;
    - when the differentiation of remuneration of employees is possible through the use of market criteria, e.g. the labor market due to the lack of specialists in a given field creates a higher remuneration for a given type of work.

    The legislator provides for compensation for non-compliance with the prohibition of discrimination.

    Article 183d of the Labor Code:
    A person against whom the employer has violated the principle of equal treatment in employment has the right to compensation in the amount not lower than the minimum remuneration for work, determined on the basis of separate provisions.

    Curiosity!
    In the event of a breach of the principle of equal treatment in employment with regard to the amount of remuneration in the past (especially after termination of employment), an employee may claim compensation in the amount of the difference between the remuneration he should receive without violating the principle of equal treatment and the remuneration actually received (Supreme Court judgment of 22.02. 2007).

Important!
The omission of a former employee when awarding a benefit that is a component of remuneration for work during the period in which he was employed violates the principles of remuneration for work performed (Article 80 of the Labor Code), remuneration according to the quantity and quality of work (Article 78 of the Labor Code) and equal treatment of employees ( 112 of the Code of Civil Procedure) - judgment of the Supreme Court of October 23, 1996.

  1. Changing the regulations without changing the notice.

    An amendment notice is a unilateral declaration of the employer changing the working or pay conditions, necessary when the change relates to essential working and pay conditions or is unfavorable to the employee, e.g. if the employee's right to the bonus results from the employment contract, then an unfavorable change in the bonus regulations may only take place his consent expressed in an agreement amending the contract or by terminating the terms of remuneration (I PKN 23/96, OSNP 1997/15/270).

    If the employer fails to submit a change notice, the employee will still be able to claim a bonus on the current terms;

  2. Failure to define the date, place and frequency of payments in the work regulations;

  3. Invalid payday.

    Art. 85 of the Labor Code
    § 1 Payment of remuneration for work shall be made at least once a month, on a fixed and predetermined date.
    § 2 Remuneration for work paid once a month is paid in arrears, immediately after its full amount has been determined, but not later than during the first 10 days of the following calendar month.
    § 3 If the agreed date of payment of remuneration for work is a holiday, the remuneration shall be paid on the preceding day.
    § 4 Components of remuneration for work, due to an employee for periods longer than one month, are paid in arrears on the dates specified in the provisions of the labor law.
    § 5 The employer, at the request of the employee, is obliged to make available for inspection the documents on the basis of which his remuneration has been calculated.

  4. There is no personal grade table.

    The remuneration resulting from personal grade is a remuneration of a permanent nature and directly related to the function performed by the employee or the position held by the employee, and not the remuneration whose activation depends on the employee meeting additional conditions, such as a period of work, performance of work in harmful conditions for health, performance of specific tasks, etc.

    The concept of grading an employee is related to the so-called qualification tables, which may also appear under other names: tables of positions, qualifications, grades, in which the position or type of work is specified in individual columns, professional qualifications of employees required to perform a given type of work or work in a specific position (Article 102 of the Labor Code)

  5. Incorrect overtime lump sum. The value of the lump sum should vary depending on the nature of the work performed.

Magdalena Warych - Wieczorek