Newsletter

Dear Readers,

 

in the April edition of our newsletter, we present the key simplifications in the regulations regarding ESG reporting that arise from the legislative proposals submitted by the European Commission. We also highlight the recent conclusion of parliamentary work on new regulations concerning the employment of foreigners, as well as the published draft amendment to the provisions on sick leave notes. Additionally, we signal changes to the amounts of compensation from the Social Insurance Institution (ZUS) for workplace accidents and occupational diseases that have been effective since April 1st.

 

Enjoy your read,

WBW Team

 

 

 

New ESG reporting rules: simplification of requirements for companies under the Omnibus Directive

Martyna Kotleszka, paralegal

 

On 26 February 2025, the European Commission presented a proposal to amend the regulations concerning sustainability reporting and due diligence in supply chains. According to a study conducted by Grant Thornton, as many as 45% of companies are unaware whether they are currently subject to, or will be subject to, ESG reporting obligations. This highlights a low level of preparedness for the new requirements. The proposed changes aim to simplify regulatory obligations, reduce administrative burdens, and enhance the competitiveness of the EU economy.

 

Key changes introduced under the Omnibus package:

 

1) Limitation of the scope of mandatory ESG reporting

 

The obligation will apply to large enterprises employing more than 1,000 employees and meeting certain financial thresholds – revenues exceeding EUR 50 million or assets exceeding EUR 25 million. As a result, up to 80% of companies, primarily small and medium-sized enterprises, will be exempt from the reporting requirements.

 

2) Limitation of obligations within the value chain

 

Companies subject to reporting requirements will not be obliged to obtain detailed data from smaller suppliers employing fewer than 1,000 employees. This limits the so-called “cascade effect” of the regulation, which previously compelled smaller entities to report ESG data to meet the compliance needs of their larger business partners.

 

3) Postponement of implementation deadlines

 

The new regulations delay the entry into force of subsequent phases of ESG reporting:

     – the second wave of reporting for large companies (with more than 250 employees) has been postponed by two years – from 2026 to 2028,

     – the third wave of reporting for SMEs, originally scheduled for 2027, has been entirely abolished.

 

The Omnibus package represents the most significant simplification of ESG reporting requirements to date within the European Union. These changes are a direct response to concerns raised by businesses regarding the complexity and cost of ESG reporting processes, as well as to the need to raise awareness and improve preparedness among companies to meet future sustainability obligations.

 

 

 

Changes arising from the Act on the Employment of Foreigners

Antonina Godlewska, paralegal

 

In the November edition of our newsletter, we discussed the proposed amendments to the regulations governing the employment of foreigners. At that time, only the general assumptions of the draft legislation were known. Currently, however, the government’s draft Act on the Conditions for Permitting the Employment of Foreigners in the Territory of the Republic of Poland has nearly completed the legislative process and is now awaiting the President’s signature. Below, we present the most important changes included in the published Act.

Abolition of the labor market test

 

Currently, Poland applies a “labor market test” when employing foreigners. Its purpose is to verify whether there is an opportunity to hire a Polish candidate for the job that a foreigner intends to fill. According to the Ministry of Labor, Family, and Social Policy, given the current low unemployment rate, this procedure is deemed ineffective. Therefore, the new regulations stipulate that the local labor office (on county level) will determine a list of occupations and types of work where work permits will not be issued for foreigners intending to work in that specific region.

 

Digitization of the labor market

 

The Act also introduces the full digitization of procedures related to the employment of foreigners. According to the law, all applications related to, i.a., work permits for foreigners and the extension of such permits, will need to be submitted and processed electronically. This means that both employees and employers will be required to set up accounts in the appropriate electronic system. 

 

Strengthening the role of the National Labor Inspectorate

 

The Act also provides for strengthening the control powers of the National Labor Inspectorate (PIP) and the Border Guard by allowing them to conduct inspections at entities employing foreign nationals—without prior notice and simultaneously. This is a significant change, as previously only one institution was authorized to conduct inspections regarding the legality of employing foreigners.

 

Sanctions for illegal employment of foreigners

 

The regulation proposes stricter sanctions for the illegal employment of foreigners. Violations of the law will be subject to fines ranging from PLN 3,000 to PLN 50,000 for each case of illegal employment.

 

Expected entry into force

 

The entry into force of the Act will depend on the date of the President’s signature. If signed in the first half of April, the Act will come into force at the beginning of May. If the President signs the Act in the second half of April, it will enter into force at the beginning of June.

 

 

 

Significant Changes Regarding Sick Leave Notes

Daria Pawlak, paralegal

 

The government draft amendment to the Social Insurance System Act is currently being reviewed by the Economic Committee of the Council of Ministers. These changes aim to adapt the regulations related to sick leave to modern market realities. 

 

Key aspects of the proposed solutions

 

The draft introduces the definition of “remunerative work,” which is any activity of a remunerative nature, regardless of the legal relationship underlying its execution. The exception will be incidental activities that are required during a sick leave due to significant circumstances, such as signing invoices or waybills. The goal is to ensure that the right to sick leave benefits is not revoked if the activities undertaken are necessary to prevent significant financial losses for the employer.

 

The draft also clarifies the definition of activities that are inconsistent with the purpose of sick leave — namely, activities that extend or hinder the process of treatment or recovery. According to the justification for the draft, exceptions to the prohibition of such activities will include routine daily tasks that can be performed during sick leave, such as grocery shopping, going to the pharmacy, or attending a medical procedure or check-up.

 

The amendments also address a new ground for losing sick leave benefits, specifically avoiding the prescribed place of residence during sick leave. Under the draft amendment, this sanction will not apply if the absence from the designated address is justified by health reasons or an incidental activity.

A significant change is related to the possibility of staying at an address in another country if it is justified by medical recommendations or other significant circumstances. If the Social Insurance Institution (ZUS) can arrange an inspection through a foreign authority (primarily within the EU), there will be no need to meet additional requirements, such as providing a doctor’s justification.

 

Employment with multiple employers and sick leave 

 

A very important change proposed in the draft amendment is the introduction of the possibility to perform remunerative work during sick leave for one employer, in situations where the attending physician considers that the nature of the work for that employer allows for it. This applies to situations where an employee is employed by more than one employer. According to the proposed changes, the employee will be allowed to work for one employer while continuing to take sick leave from the other employer.

 

 

 

New compensation amounts from ZUS for work accidents and occupational diseases

Piotr Szalaty, paralegal

 

According to the announcement by the Minister of Family, Labor, and Social Policy dated February 28, 2025 (Official Gazette of 2025, No. 222), new rates for one-time compensation payments from the Social Insurance Institution (ZUS) for work accidents and occupational diseases will apply from April 1, 2025, to March 31, 2026. The new compensation amounts for work accidents or occupational diseases will depend on the consequences caused by the incident.

 

The modified compensation amounts range from 1,636 PLN for each percentage of permanent or long-term health impairment (compared to 1,431 PLN from April 1, 2024, to March 31, 2025), up to 147,271 PLN if the one-time compensation is due to the spouse and one or more children of the deceased insured person or pensioner, as well as 28,636 PLN for each child entitled to this increased compensation.

 

An amount of 73,635 PLN may be awarded to a family member of the deceased insured person or pensioner other than the spouse or children. Similarly, if the one-time compensation is due to family members other than the spouse or children of the deceased insured person or pensioner, an additional 28,636 PLN will be provided for the second and each subsequent eligible family member.

However, it should be noted that ZUS will only pay the one-time compensation if the medical diagnosis confirms the health impairment and establishes a link between the impairment and the work conditions or a sudden incident during work. Such a sudden event during work is most often a work accident.