Suspension of operations under new rules - from April 30, 2018

Service

Suspension of operations is nothing new. Entrepreneurs are eager to take advantage of the possibility of temporarily suspending the performance of their activities. This is a convenient solution, especially if the business is seasonal. Due to changes in regulations, from April 30, 2018, operations are suspended under the new rules.

How was it so far?

Until the end of April 2018, the suspension of operations was related to several main rules:

  • the suspension of operations lasted a maximum of 24 months,

  • if the entrepreneur has not submitted an application for the resumption of activity after 24 months, it has been automatically deleted from the CEIDG register,

  • suspension of activity was impossible if the entrepreneur employed any employee (regardless of the form of employment).

What is the Business Constitution?

The business constitution is the name of a package of laws that were introduced by the government to make it easier for entrepreneurs in Poland to run their own business. The acts introducing the changes are:

1) the Act of March 6, 2018 - Entrepreneurs' Law
2) the Act of March 6, 2018 on the Ombudsman for Small and Medium Enterprises
3) the Act of March 6, 2018 on the Central Register and Information on Economic Activity and the Information Point for Entrepreneurs
4) the Act of March 6, 2018 on the principles of the participation of foreign entrepreneurs and other foreign persons in economic turnover in the territory of the Republic of Poland
5) the Act of March 6, 2018 - Regulations introducing the Act - Entrepreneurs' Law and other acts related to business activity.

Suspension of activities under new rules - extension of the period

As already mentioned, so far an entrepreneur running a business on the basis of an entry in the CEIDG, could suspend its operation for a minimum of 30 days and a maximum of 24 months. However, if he did not submit an application for the resumption of activity in due time, it was removed from the register, i.e. the activity was liquidated.

The Act on Entrepreneurs' Law introduces two most important changes in this respect:

  • the activity can be suspended without indicating the date of its resumption. In this case, the entrepreneur will be required to submit an application for its resumption if he wants to return to business,

  • the activity may be suspended for a specified period of time, and by specifying the end date of the suspension in the CEIDG-1 application, a period longer than 24 months may be given.

Important!

After the expiry of the deadline indicated in the application for the suspension of activity, it will be automatically resumed, and not closed as before.

Example 1.

Mr. Antoni has been operating for several years, but for personal reasons he decided to suspend his activity for 3 years. In the application, CEIDG indicated the date of suspension of activities on May 5, 2018 - May 31, 2021. Assuming that Mr. Antoni forgets to submit an application for the resumption of activities, it will be resumed automatically on June 1, 2021.

Suspension of activity in the event of employment of employees

Until now, one of the basic conditions for suspending activities was not employing a single employee (regardless of the type of contract - employment contract or civil law contract). This condition was very unfair for many entrepreneurs. This is especially true of cases where the company employed one employee who was on leave related to parenthood, e.g. maternity or parental leave. In such cases, the only solution for the entrepreneur was to wind up the business.

From April 30, there will be changes that will certainly be beneficial for entrepreneurs. The new regulations introduce the possibility of suspending operations in the event that the enterprise employs only employees who are currently staying at:

  • maternity leave,

  • leave on the terms of maternity leave,

  • parental leave,

  • parental leave, not combining the use of parental leave with the performance of work for the employer granting this leave.

But what if the employee ends the vacation period?

The employee does not have to worry that there is no company to return to after the end of maternity leave. Art. 22 point 2 of the Act on the Entrepreneur's Law indicates (...) In the event of termination of the leave or submission by an employee of an application to combine the use of parental leave with work for the employer granting this leave, the employee has the right to remuneration as for downtime, as defined by the provisions of labor law, until the end of the suspension period business.

Example 2.

Mr. Krzysztof plans to suspend his business in June 2018. It is possible despite the fact that one of his employees is on maternity leave. Already when the activity was suspended, he planned that he would resume it when the employee completed her vacation and submitted an application for return to work. However, if it fails to do so, it will be required to pay the employees downtime or go out of business.

Start a free 30-day trial period with no strings attached!

What else has changed?

The change for entrepreneurs who want to suspend their activities is that they can do so as partners of a partnership (or many) civil partnerships. However, the condition for the effectiveness of such a suspension is that all members of the company make it - Art. 22 points 3-5 of the Act on the Entrepreneur's Law.