Poland: Anti-crisis shield (COVID-19)

As a result of the COVID-19 pandemic, Polish authorities are considering the implementation of new regulations aimed at mitigating the adverse effect of the current situation on the Polish economy. Below you will find a summary of selected measures in this respect.

EMPLOYMENT MATTERS

1. REMUNERATION SUBSIDIES

Entrepreneurs may apply for funding of the employees’ remunerations from the Guaranteed Employment Benefit Fund (for a total period of 3 months from the date of conclusion of the agreement on granting funds) with regard to employees affected by the economic standstill or short-time work as a result of the pandemic:

• an employee affected by the economic standstill shall receive a reduced remuneration (however, the employee’s remuneration may not be lower than the statutory minimum remuneration); this remuneration shall be funded from the Guaranteed Employment Benefit Fund up to the amount of 50% of the statutory minimum remuneration along with the social security contributions from the granted funds paid by the employer (i.e. PLN 1,533.09), taking into account the total working hours;
• in the event of a decreased turnover due to COVID-19 (by 15% or 25% towards applicable references periods), the employer may reduce working time by 20%, however no less than to 1/2 full-time working time (however, the employee’s remuneration may not be lower than the statutory minimum remuneration); the remuneration shall be funded from the Guaranteed Employment Benefit Fund up to 40% of the average monthly remuneration in Poland in the previous quarter (as published by the Polish Statistical Office – GUS) along with the social security contributions from the granted funds paid by the employer (i.e. PLN 2,452.27).
• funding shall be made on request and until the funds allocated for this purpose are available.  

2. TERMS AND CONDITIONS OF WORK

The conditions and mode of work during a period of economic standstill or reduced working hours shall be determined by the employer in a collective agreement, in consultation with the company's trade unions, representative trade unions or in consultation with the employees' representatives. If it is not possible to establish the aforementioned conditions in agreement with the employees within 2 days of the announcement of the introduction of economic downtime or reduced working hours, the employer shall be entitled to determine them individually.

3. WORKING TIME

It shall be possible to shorten daily uninterrupted employee’s rest from the current 11 hours to 8 hours, and weekly time of uninterrupted employee’s rest from 35 to 32 hours. It shall also be admissible to extend daily working time to 12 hours (equivalent working time) and to extend settlement period to 12 months.

4. PERIODIC MEDICAL CHECK-UP

The obligation to carry out periodic medical check-ups with regard to employees shall be suspended until the end of the epidemic state (the obligation will have to be fulfilled within 60 days following the end of the aforesaid state).

The validity of medical certificates issued as part of periodic medical check-up which expired after 7 March 2020 shall be extended until 60 days from the date of the end of the epidemic state.

5. EMPLOYEES’ CAPITAL PLANS

Implementation of the Employees’ Capital Plans in medium-sized enterprises is postponed until 1 October 2020.

CORPORATE MATTERS

• It shall be admissible to hold management boards’ and supervisory boards’ meetings with the use of means of distance communication. Adoption of resolutions by the aforesaid corporate authorities shall be possible in the same manner or in the written form. It shall also be possible to cast a vote in written form through another member of the company’s governing body. No additional regulations in the company's articles of association shall be required in this respect.    
• It shall be admissible to attend the Shareholders Meeting and the General Meeting of Shareholders with the use of electronic means of communication and exercise the voting right in the same manner.
• It shall be possible to postpone the deadline for approval of remuneration policy in listed companies for the members of the management board and the supervisory board shall be prolonged until 30 August 2020 on the basis of the regulation.

REPORTING OBLIGATIONS

• The deadline for disclosure of information in the Central Register of the Ultimate Beneficial Owners shall be postponed until 13 July 2020.

LOANS

• Loan agreements concluded until 31 August 2020 shall be exempt from the tax on civil law transactions if the borrower is an entrepreneur whose liquidity has deteriorated in connection with COVID-19.

PUBLIC PROCUREMENT

• Parties to public procurement agreement shall be obligated to inform each other about the impact of circumstances connected with COVID-19 on the proper performance of their contractual obligations.
• It shall be possible to modify a public procurement agreement in a situation where the circumstances related to the occurrence of COVID-19 may adversely affect the proper performance of the agreement (the price increase caused by this change may not exceed 50% of the agreement value).
• It shall be possible to release a party from the contractual penalties for delay in fulfilment of the public procurement in connection with the pandemic.
• Members of the companies’ governing bodies shall not be liable for damage suffered by the company as a result of refraining from pursuing claims arising out of:
  a. non-performance or improper performance of the public procurement agreement due to circumstances related to the occurrence of COVID-19;
  b. modification of the agreement due to COVID-19.

COMMERCIAL ACTIVITIES

• Rent in commercial centres with a sale area above 2000 square meters shall be decreased by 90% for lessees that do not conduct their business activity due to the epidemic state.
• A lessee shall not be liable for the non-performance or improper performance of the agreement if it resulted from a limitation of its activity in a commercial centre with a sales area of more than 2000 m² provided that such limitation of activity was required by law.

LEASE AGREEMENTS

• Lease agreements shall be extended until 30 June 2020 on the basis of the tenant’s declaration which should be submitted not later than on the original expiry date. This rule shall not apply if the tenant has breached the lease agreement.
• It shall not be allowed to terminate the lease agreement or change the amount of rent until 30 June 2020, except in the cases indicated in the regulations.