Imposing social security contributions on orders, regardless of the number of contracts signed by one contractor, can surely be seen as a turning point for the social security system, employers and employees alike, However, it is hard to tell how the labour market will react – writes President of Employers of Poland Andrzej Malinowski in “Rzeczpospolita”.
According to Malinowski, one thing is certain: as is always the case with revolutions, the grey market may take advantage of rapid changes, as it will surely not pass up an opportunity to weaken legally functioning entities.
– Will numerous inspections employ the tried and tested scenarios, that is mass controls of official entities and a tolerance for increasingly shameless grey market? – asks the President of Employers of Poland.
The obligation to impose social security contributions on orders applies also to entrepreneurs who are in the process of realizing long-term contracts. For many companies this means higher costs with an unchanged pay from the mandator.
A valorization of the payment will be an option, but negotiations will only be allowed to start once the act comes into force.
What is more, if the entrepreneur decides to break the contract he may only do so without consequences after March 1st 2016, with a three-month dismissal period. For many companies where the costs of human resources are high this might mean a significant decrease in profitability.
– All in all, for the first five months of the year entrepreneurs will be forced to choose between bankruptcy caused by efforts to adhere to the law and bankruptcy caused by contractual fines. A promising perspective indeed! – the President of Employers of Poland remarks bitterly.
– The public procurement law should be changed in such a manner that the negotiations on valorization may begin relatively early – on September 1st this year at best. Only such a solution guarantees the safe and stable functioning of thousands of Polish companies and consequently the employment of hundreds of people, the protection of which was the intended objective of passing this law in the first place – Andrzej Malinowski concludes.