Recent developments in reinstatement, retirement and immigration
In this article we review recent developments in the reinstatement of board members following dismissal, as well as retirement age changes and measures to discourage unlawful immigration.
Reinstatement of dismissed management board member
Under Polish law, a company may enter into an employment contract with a member of its management board. However, in order to dismiss such a person, a resolution to dismiss must be made and the employment contract terminated.
On 16 May 2012, the Supreme Court ruled that a member of a management board, whose employment contract had been unlawfully terminated after a proper resolution to dismiss had been made, could claim reinstatement to his or her previous conditions of employment (III PZP 3/12). Given the challenging circumstances, (for example, despite reinstatement, the employee may not act as a board member because the dismissal resolution was valid), such reinstatements should be exceptional (such as in the reinstatement of a pregnant employee).
This decision of the Supreme Court may well cause employers to ask themselves whether it is sensible to engage members of management boards under employment contracts.
Increase of retirement age
At present, the retirement age is 60 years for women and 65 years for men. As of 1 January 2013 the retirement age will increase gradually until it reaches 67 years, which, for men, will be in 2020 and, for women, 2040.
Employment of illegally staying foreigners
The Polish Parliament is currently working on an Act to implement EU Directive 2009/52/EC, providing for minimum standards on sanctions and measures against employers of illegal immigrants. The aim of this Directive is to limit unlawful immigration to the European Union.