Introduction
Poland has emerged as a thriving hub for tech talent, with its skilled workforce and favourable business environment attracting companies worldwide. However, many companies face the challenge of employing a workforce in Poland without establishing a legal entity. This article will explore two effective methods for hiring employees in Poland: B2B contracts and utilising an Employer of Record (EOR) service.
B2B Contracts
What are B2B Contracts?
B2B contracts, or Business-to-Business contracts, are agreements between two businesses to provide services. In the context of employing tech talent in Poland, B2B contracts allow companies to engage with independent contractors or freelancers without establishing a legal entity. Around 60% of Polish developers are estimated to work under a B2B agreement.
Advantages of B2B Contracts
- Flexibility: B2B contracts provide flexibility in hiring tech talent on a project basis or for specific tasks, allowing companies to scale their workforce as needed.
- Cost-Effectiveness: By employing tech talent through B2B contracts, companies can avoid the expenses of establishing a legal entity, such as setting up a local office or complying with local labour laws.
- Access to a Diverse Talent Pool: B2B contracts enable companies to expand their business, and tap into a diverse talent pool in Poland, leveraging the expertise of highly educated professionals.
Considerations for B2B Contracts
While B2B contracts offer numerous advantages, it is essential to consider certain factors before employing tech talent through this method:
- Compliance: Ensure that the B2B contracts compliant with local laws and regulations in Poland to avoid legal issues.
- Intellectual Property Protection: Establish clear provisions regarding intellectual property rights to protect your company’s assets.
- Contractual Agreements: Define the scope of work, deliverables, timelines, and payment terms in the B2B contracts to maintain a mutually beneficial working relationship.
Employer of Record (EOR)
What is an Employer of Record?
An Employer of Record (EOR) is a service provider that acts as the legal employer for the hired talent. When utilising an EOR in Poland, the service provider handles all employment-related obligations, including payroll, social security, annual leave, holiday and sick leave, tax compliance, and legal requirements.
Benefits of Using an EOR
- Legal Compliance: By partnering with an EOR in Poland, companies can ensure full compliance with Polish labour laws and regulations, mitigating the risk of legal liabilities without establishing a local entity.
- Simplified Hiring Process: The EOR handles the administrative tasks of the permanent employment contract, including the onboarding and mandatory medical tests allowing companies to focus on their core business activities.
- Access to HR Expertise: EORs provide expert knowledge in local employment practices, ensuring smooth operations and minimising HR-related challenges.
Considerations for Using an EOR
When considering an EOR service in Poland, keep the following in mind:
- Reputation and Expertise: Choose an EOR with a proven track record and extensive experience managing employment processes in Poland.
- Cost and Pricing Structure: Evaluate the pricing structure of the EOR service, considering factors such as setup fees, monthly fees, and additional charges.
- Support and Communication: Ensure that the EOR offers reliable support and effective communication channels to promptly address any concerns or queries.
Conclusion
Employing tech talent in Poland without establishing a legal entity is possible through two primary methods: B2B contracts and utilising an Employer of Record (EOR) service. B2B contracts offer flexibility and cost-effectiveness, while an EOR provides legal compliance and simplified hiring processes. Companies seeking to leverage Poland’s tech talent should carefully evaluate these options and choose the approach that aligns best with their business objectives and resources.
