New Rules for Calculating Length of Service in Poland – Labor Code Amendment Effective 2026

The Polish Parliament has passed an amendment to the Labor Code, introducing new rules for calculating length of service effective in 2026. The reform expands the definition of service to include various forms of professional activity beyond standard employment contracts, such as civil law agreements, business operations, and documented work abroad—provided pension and disability contributions were paid. These changes will impact employee entitlements including annual leave, severance pay, and notice periods. Public sector employers will implement the new rules from January 1, 2026, while private sector employers will follow six months after the law’s publication. Employees will have 24 months to submit documentation verifying additional service periods. The amendment aims to create a fairer and more inclusive system for all professionally active individuals.

Final explanations on the application of the beneficial owner clause under the Polish Withholding Tax (WHT) regime

The Polish Ministry of Finance has released the final version of its official explanations (“Explanations”) on the application of the so-called beneficial owner clause for the purposes of withholding tax (“WHT”). This document is of high importance to entities making payments subject to Polish WHT. It provides more clarity on how remitters should interpret and apply the beneficial owner requirement when determining whether preferential WHT treatment can be applied.