What is Umowa zlecenie – a mandate contract?
A mandate contract is a civil-law contract governed by the Civil Code. Because the provisions of the Labour Code do not apply to this contract, the person performing the assignment is only entitled to rights that arise directly from the content of the contract.
An employer using services provided under civil-law contracts is, however, required to ensure appropriate protection for contractors. The type of contract does not exempt employees and contractors from the obligation to ensure safe and hygienic working conditions.
Umowa zlecenie – hourly rate in 2024.
Umowa zlecenie is also subject to a predetermined minimum wage in the form of a minimum hourly rate. The hourly rate is closely linked to the minimum wage and will change as the wage changes.
In 2024, the minimum hourly rate in the first half of the year will be 27.70 zł, and in the second half of the year 28.10 zł per hour worked.
It is worth noting that, in connection with the minimum hourly rate, an entrepreneur will need to keep records of the contractor's working time. Records must be kept in a form that allows regulatory authorities to check whether the minimum hourly rate requirements have been met.
Mandate contract – contributions
When hiring a contractor under a mandate contract, the entrepreneur must remember that such a contract triggers an obligation to calculate and pay social insurance contributions to ZUS. The client is exempt from paying social insurance contributions for the contractor only if the contractor has other entitlements to insurance in an amount equal to or exceeding the national minimum. In that case, only a health insurance contribution will be required.
If you hire a student under 26, the client is not obliged to register them with ZUS.
The application for ZUS contributions must be submitted within 7 days of the start of the umowa zlecenie using the ZUS ZUA form.
An entrepreneur is subject to compulsory social insurance; only health insurance is voluntary.
If a client hires a contractor under a mandate contract and is at the same time bound by an employment contract with them, the contractor is regarded as an employee and is subject to all types of social and health insurance under the mandate contract.
Umowa zlecenie – what rights does the contractor have?
A mandate contract does not protect an employee's interests. An employment contract provides for specific notice periods, holiday leave, sickness benefit, benefits, and overtime pay, all of which can be enforced in court. A contractor is not entitled to any of the above.
Umowa zlecenie does not count towards length of service and does not guarantee continuity of employment. From the entrepreneur's perspective this is more favourable, since they practically have no further obligations to the contractor and can end the arrangement at any time. However, the client should remember that this right also belongs to the contractor, who can leave the company immediately if the contract does not regulate a notice period.
Umowa zlecenie and employment relations
In addition, the contractor should be careful not to be exploited by the client. The most important point is that the assignment carried out by contractors must not actually meet the criteria of an employment relationship. These criteria are primarily:
- a fixed place and schedule of work,
- performance of work within organisational and official subordination,
- a strict requirement to perform the work personally.
If the content of a mandate contract provides for work to be performed under subordinate conditions, personally and for remuneration, at a specified place and time, then in fact the contract is an employment contract.
If the indicated signs occur in an umowa o dzieło, the employer will be committing a violation of employee rights. If the State Labour Inspectorate discovers this, the employer faces a fine. Moreover, if the inspector confirms the violation, they will require the employer to conclude an employment contract retroactively and will be required to pay all amounts due under the employment relationship: holiday pay, overtime, and the minimum wage.