What types of contracts are there?
Employment contract
An employment contract is a formal document that regulates the employment relationship between the employer and the employee. It is the basic form of establishing an employment relationship.
Work time system
For employment contracts, you can additionally choose between two work systems, which primarily differ in how working time is distributed over the settlement period.
- Basic system – the daily working time norm is 8 hours.
- Balanced system – the daily norm can be extended but must be balanced on other days.
Want to set a default work system for employment contracts?
Go to Organization settings, then to the General tab. At the very bottom, you can set the default work system for employment contracts. Don’t forget to save your changes!
Employment type
Another variable to define is the employment type, which indicates how many hours the employee should work per week. A full-time job means 40 hours per week, while other options are fractions of this, e.g., half-time equals 20 hours per week.
Salary
When defining the salary, you can choose between two rate types.
- Hourly rate – the salary is calculated based on the hours worked in a month.
- Monthly rate – the employee receives a fixed amount regardless of the number of hours worked in a month.
You must also enter the appropriate rate (gross), which must be greater than 0.
Additionally, you can enable the Minimum wage option (disabled by default), which automatically sets the rate (gross) to the current minimum wage (hourly or monthly), i.e., the lowest amount an employer is legally required to pay the employee.
Want to know more details about the minimum wage?
Visit the government website https://www.gov.pl/web/rodzina/minimalna-stawka-godzinowa.
Flat rate and other rates
In the Flat rate and other rates tab, you can define:
- lump sum amounts for night duty, night hours, and overtime,
- percentage rates for individual night duty and overtime,
- bonus amount,
- EU work allowance,
- reward amount.
Civil contract
A contract of mandate is a civil law agreement in which the contractor undertakes to perform a specific task for the client.
Salary
In the case of a contract of mandate, the only available rate type is the hourly rate, which is set by default.
Just like in the case of a employment contract, it is possible to enable the Minimum wage option (disabled by default).
More about this option can be found in the Salary section under Contract of employment.
Self-employment
Self-employment means running a business on one’s own account, at one’s own responsibility and risk. A self-employed person is both the owner and the employee of their own company.
Salary
In the case of self-employment, just like with a civil contract, the only available rate type is the hourly rate, which is set by default. The key difference is that there is no option to select the minimum wage. The hourly rate (gross) must be entered manually and must be greater than 0.
Self-employment with transport a license
Self-employment with a license (also known as driver self-employment) means that the driver runs their own business and provides transport services for which they hold a valid license, e.g. a license for road transport of goods. In this case, the driver-entrepreneur is treated as a carrier and is solely responsible for running the business and delivering transport services.
