This is to let you know of changes arising from the legislation the Polish Sejm enacted on 1 December 2022 to amend the Labour Code.
The status of remote work in the Labour Code will be reinforced as a permanent option (rather than one applicable just in relation to the COVID-19 pandemic). To duly implement remote work, employers will be required to:
- provide the materials and tools necessary for remote work, or
- pay cash compensation or a fixed sum for use by the employee of their private tools.
The fact that the employer has provided tools and materials or paid compensation or a fixed sum to the employee as above will not be taken to generate any additional taxable income for the employee.
However, uncertainties are already expressed about how to calculate the compensation and the fixed sum. The amount should correspond to the employee’s estimated costs of doing remote work. According to the law, major items to be taken into account in that estimation are “(…) standard wear and tear of materials and tools, including technical equipment, their documented market prices, the quantity of materials used for employer’s purposes, the market prices of the materials, as well as standard consumption of electricity and costs of telecommunication services”. But employers plead for more precise guidelines.
The Bill is now in the Senate. We will keep you updated on the progress of this legislation.
The changes relating to remote work are expected to enter into force two months after the law is published in the Journal of Laws.
If this issue pertains to your business and you are interested in our assistance, please contact us.
This blog post is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries. Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.