According to data gathered by the National Labour Inspectorate, it is increasingly common for civil contracts to substitute contracts of employment.
– Given that only a little over 60 percent of the sum spent by companies on wages actually ends up in the pockets of those with contracts of employment, the increasing popularity of civil contracts can hardly be a surprise. However, lower non-wage labour costs are not the only cause of such a development – the simplicity and flexibility of such contracts are equally important. The popularity of forms of employment other than contracts of employment has a dark side as well, as it contributes to the duality of the Polish labour market. In order to change that, we have to adapt our 42-year old Labour Code to the demands of modern economy. The structure of fiscal burdens should also be optimized by shifting the focus of taxation from labour to consumption. Removing the burdens of bureaucracy and cutting the tax wedge would be a win-win situation for both employees and employers – comments economic expert of Employers of Poland Łukasz Kozłowski.