[Poland] Group layoffs – rights and obligations of employers

The dynamically changing economic environment means that employers are increasingly faced with the need to conduct group layoffs. Workplaces that plan to conduct group layoffs must meet specific requirements regarding, among others, the level of employment, reasons for layoffs and deadlines. What are their obligations? What severance pay are employees entitled to when they are laid off? In this article, we present practical information on how to conduct group layoffs in a company efficiently and in accordance with the law.

Group layoffs – what criteria must an employer meet?

In order for employers to be able to conduct group layoffs, they must employ at least 20 employees (on the basis of employment contracts, working time does not count, temporary workers are not included). An employment relationship may be terminated not only by notice of termination by the employer, but also by mutual agreement of the parties.

We are talking about collective layoffs, if:

• an employer with fewer than 100 employees lays off at least 10 employees,
• an employer with 100 to 299 employees lays off at least 10% of the workforce,
• an employer with 300 or more employees lays off at least 30 employees,

in less than 30 days.

The above limits may also include termination of contracts by mutual consent if they concern at least 5 employees.

It is crucial that the reasons for terminating employment contracts lie with the employer, not the employees. Reasons for collective layoffs attributable to the employer:

• Liquidation or restructuring of a workplace (e.g. bankruptcy, liquidation of a department)
• Restrictions on employment (e.g. reduction of staff, economic reasons)
• Organizational changes (e.g. reorganization, technological changes)

Key employer obligations in the group layoff process

Group layoffs are a complex process that requires the employer to be familiar with and comply with applicable labour law regulations. To ensure that layoffs are conducted in accordance with the law, the employer must fulfil a number of obligations, including:

Employer obligations:

• Applying objective and fair criteria for selecting employees for dismissal
• Taking into account all employees affected by the reasons for dismissal
• Compliance with the provisions on the protection of employees against dismissal (e.g. employees of pre-retirement age, pregnant women)
• Payment of severance pay to dismissed employees
• Consultations with trade union organizations

What are the rules for selecting employees for dismissal? Who cannot be dismissed?

In the process of collective redundancies, the employer does not have freedom in selecting employees for redundancy. It is crucial to apply objective and fair criteria that take into account all employees affected by the reasons for restructuring. These criteria should reflect the needs and interests of the employer, and at the same time be measurable and verifiable. They may include aspects such as:

• professional qualifications,
• education,
• previous employment history,
• work experience
• acquired skills.

Employers must also take into account special categories of employees who are subject to enhanced protection against collective dismissal. According to the applicable regulations, during the protection period the employer may only give notice changing the terms of work and pay. Protected employees include:

• Pre-retirement age employees: persons who lack no more than 4 years to reach retirement age (read also: Employee 50+: what challenges does protecting employees before retirement pose for companies?)

• Pregnant women and employees using specific leaves: pregnant women, employees on maternity, parental, paternity and care leave. The protection covers the period from submitting the leave application to its end (read also: Additional maternity leave for parents of premature babies)

• Representatives of trade unions and works councils: members of works councils, trade unions, boards of trade union organizations, social labour inspectors and other persons authorized to represent employees

• Members of negotiating teams and works councils: persons who are members of special negotiating teams, European works councils, employee representatives in European companies and cooperatives, social labour inspectors

• Employees called up for military service: persons called up for active military service, alternative service, compulsory service or military training

Severance pay for dismissed employees – what should an employer know?

Every employer planning to conduct group layoffs should know that in the event of termination of employment as part of group layoffs, the employee is entitled to a severance payment. The amount of the benefit is regulated by the Act on special principles for terminating employment relationships for reasons not related to employees.

The amount of severance pay depends on the employee’s length of service:

• Up to 2 years of employment: 1 month’s salary
• From 2 to 8 years of employment: 2 months’ salary
• More than 8 years of employment: 3 months’ salary

Maximum severance pay in 2025:

• Please note that the amount of severance pay is limited and cannot exceed 15 times the minimum wage applicable on the date of termination of the contract.
• In 2025, taking into account the changes to the minimum wage, the maximum amount of the severance pay amounts to PLN 69,990.

Group layoffs – how to build a positive company image?

The key to maintaining a positive image of the company during mass layoffs is communication. For this purpose, it is worth appointing a team of experts who will develop, among other things, a detailed layoff plan and clear rules for communicating with employees and trade unions. By regularly informing employees about the layoff process, you one can minimize the risk of losing key talent, avoid a drop in productivity, misunderstandings and conflicts. In addition, employees should be allowed to express their opinions, as this information can provide valuable data on the functioning of the company and potential problems, the solution of which can strengthen stability and help maintain a good image of the company on the labour market.

The number of mass layoffs is increasing, and statistical data confirms it

According to data from the Central Statistical Office, in January 2025, employment in companies employing at least 10 employees fell by 0.9% compared to January 2024. This means a loss of about 61 thousand jobs, which gives a total of 6,488 thousand positions. This decline in employment turned out to be deeper than economists had predicted, which suggests a difficult situation on the labour market, despite the GDP growth of 2.9% recorded by the Central Statistical Office in 2024.

Moreover, according to information published by “Rzeczpospolita”, in 2024 employers announced their intention to collectively lay off over 37,000 employees, of which over 27,000 were laid off. This trend will continue into 2025. In the first months of this year, group layoffs were announced covering over 10,000 employees in companies such as Poczta Polska, Carrefour, Black Red White, Collins Aerospace and Oriflame.

Individual and group layoffs – how can we help?

As part of the Advartis Group, we provide professional support at every stage of the process, ensuring compliance with applicable laws and minimizing risk, including:

• Developing a layoff strategy
• Support in optimizing sick leave costs
• Dispute Risk Analysis and Risk Minimization
• Preparation of documentation regarding contract termination
• Preparation of agreements on the termination of employment contracts/management contracts/service contracts

We also provide employers with comprehensive HR support. We offer assistance in the areas of HR and payroll services, taxes and HR process optimization.

Explore our service:
HR & Payroll outsourcing