At the beginning of the new year there will be a significant new obligation under Polish labour law for some employers.

The fourth and final phase of implementing Employee Capital Plans (“PPK”) will begin on 1 January 2021. This phase will impose an obligation to create a PPK on entities so far not covered by this new form of saving, including those that employed fewer than 20 people on 31 December 2019 (including individuals working under certain civil law contracts, e.g. mandate contracts) and entities from the public finance sector.

The establishment of a PPK is associated with a number of additional obligations for the employer, including, the necessity of selecting a financial institution to manage the PPK in a given employing establishment – a decision that should be taken together with the company trade union organizations or employee representatives operating in the employing establishment (if no trade union is present). Choosing the right financial institution is a key issue for the employer, as it is with this institution that the employer is required to enter into a  contract for managing the PPK and a contract for running the PPK.

Due to the COVID-19 pandemic, the deadlines for concluding agreements connected with PPKs with financial institutions have changed. In the case of companies with fewer than 20 employees, they are now as follows:

• contract for managing the PPK – 23 April 2021,
• contract for running the PPK – 10 May 2021.

If an employer does not fulfil its PPK-related obligations ((e.g. does not conclude a contract for managing the PPK), it may have to pay a fine equal to 1.5% of its remuneration fund from the previous financial year.

Taking all the above into consideration, employers should start preparing themselves for this process – and in particular consider the choice of financial institution.