Important Changes for Employees in the Code of Civil Procedure: Impact on Employers

Publication Date: 27.09.2023

On September 22, 2023, amendments to the Code of Civil Procedure came into effect, enhancing the protection of dismissed employees. The new regulations allow a dismissed employee under special protection to request an injunction for reinstatement, as stipulated by the revised Article 477² § 2 of the CCP.

The modification of Article 477² § 2 of the CCP transforms the court's previous discretion to order the employer to continue employing the worker into a mandatory obligation. The phrase "may order" has been replaced with "orders."

New Protections Under the Law

Under the new regulations, protection will apply to:

  • Employees filing a lawsuit to declare their dismissal invalid or to be reinstated.
  • Employees under special protection.

Employees Under Special Protection Include:

  • Pregnant women;
  • Parents on maternity, parental, paternity, or childcare leave;
  • Pre-retirement age employees;
  • Trade union activists;
  • Members of works councils;
  • Social labor inspectors;
  • Employees on justified absence.

For employees filing a lawsuit, the court of first instance will be obligated, upon the employee's request, to order the employer to continue employment until the legal proceedings are concluded.

In the case of employees under special protection, the amendment introduces a new mechanism. Such an employee can request the court, at any stage of the proceedings, to issue an injunction requiring the employer to continue their employment until the proceedings are legally concluded. The court must generally grant this request, provided there is a "likelihood" of the claim being valid. This means the employee does not need to prove anything to be reinstated, and the court does not need to conduct an evidentiary hearing before issuing the injunction.

The only condition for granting an injunction is the substantiation of the employee's claims. The court can refuse the injunction only if the employee's claim is clearly unfounded.

An order granting an injunction can be enforced through execution. Moreover, the court, upon the employee's request, can threaten the employer with a financial penalty if they fail to comply.

The new provisions also grant employers the right to appeal against the injunction order. If the injunction becomes final, the employer can request its cancellation, but only if they can prove that circumstances have changed, such as:

  • Serious violations of basic employee duties;
  • The employee committing a crime that makes continued employment impossible, provided the crime is obvious or confirmed by a final judgment;
  • The employee's fault-based loss of necessary qualifications.

These are the only instances in which an employer can seek to overturn an injunction.

Implications for Employers

While these changes are highly beneficial for employees, they may pose challenges for employers. Employers may be forced to continue employing individuals suspected of damaging the company. Given that legal proceedings in Poland can be lengthy, this could lead employers to seek alternative forms of employment, making employment contracts more exclusive.

The new regulations also reduce courts to a somewhat automatic role, which can be seen negatively. In the long term, these changes mean that employers will need to approach dismissals with much greater caution.

Another Important Change for Employers Regarding Employee Contracts

Starting September 28, 2023, new regulations will also amend the Act on Court Fees in Civil Cases (Journal of Laws of 2023, item 1860). Under the new legal framework, court fees for lawsuits filed by employees in employment matters will be completely abolished.

As a result of the amendment to Article 35 of the Act on Court Fees, in cases where the value of the dispute exceeds PLN 50,000, an appeal fee will be charged to both employees and employers based on the value of the dispute, in accordance with Article 13 of the Act on Court Fees.

Conclusion

This change undoubtedly benefits employees, allowing them to sue employers for any amount without incurring court fees. However, it is certainly not a welcome development for employers.