Article

Thematic feature - individual labour/employment disputes and the courts

Published: 15 July 2004

This article examines how individual labour/employment disputes are handled through the courts in Poland, as at March 2004.

Download article in original language : PL0403101tPL.DOC

This article examines how individual labour/employment disputes are handled through the courts in Poland, as at March 2004.

In March 2004, the EIRO national centres in 24 European countries were asked, in response to a questionnaire, to give a brief overview of their country's system for dealing with individual labour/employment disputes through the courts, along with data on: the volume of cases; the costs; the timeframe; alternatives to going to court; and any current debate on these issues. The Polish responses are set out below (along with the questions asked).

System

Please give a brief description of how disputes concerning individual employees' employment and labour rights are handled in your country by courts, tribunals or other official judicial bodies.

Individual disputes over claims rooted in the employment relationship are governed by section 12 of the Labour Code, while the provisions of the Civil Process Code laying down a simplified judicial procedure apply. The procedures aim to: ensure that employees' interests receive special protection; place the two parties to the dispute on a more or less equal footing; facilitate the enforcement of employee claims; and simplify bureaucracy.

Individual labour/employment dispute cases are dealt with in first instance by the labour division of the district courts, and in the second instance by the labour division (or, occasionally, the labour and social insurance division) of the circuit courts. The courts' labour divisions deal with:

  • all claims arising from the employment relationship or associated with it. These involve claims that one of the parties to an employment relationship, either the employer or the employee, has violated employment/labour laws or the provisions of other statutes and/or executory instruments defining the rights and mutual duties of employers and employees, or of collective agreements and other collective bargaining arrangements rooted in labour law. Typical claims by employees relate to termination of employment, reinstatement of the employment relationship, remuneration, severance payments, benefits paid to employees preparing for retirement and claims following an employee’s death pursued by their heirs. Employers, for their part, might seek compensation for damage caused by the employee or for the return of irregularly collected benefits;

  • claims that an employment relationship in fact exists, although there is no contract or a contract provides that no such relationship exists; and

  • claims for damages from the employer on the basis of laws regulating compensation with respect to accidents at work and work-related illnesses.

The courts' labour divisions does not hear cases concerning:

  • the institution of new terms and conditions for pay and employment;

  • the application of 'work standards'; and

  • accommodation facilities for workers.

A party not satisfied with a court ruling can appeal it to a higher instance, ie to the circuit court (for district court rulings) or to the appeals court (for circuit court rulings). Subject to certain conditions, some decisions may also be appealed before the Supreme Court (Sąd Najwyższy, SN). This right applies where the following are alleged:

  • breach of substantive law by way of defective interpretation or application; and

  • procedural improprieties that they may have coloured the outcome of the case.

No appeal to the Supreme Court is available where the the claim is worth less than PLN 10,000 (roughly EUR 2,000), or in respect of cases concerning disciplinary penalties at work or work certificates.

Various 'social organisations', including trade unions, are entitled to bring cases against employers on behalf of employees. The State Labour Inspection (Państwowa Inspekcja Pracy, PIP) is also authorised to take the employer to court in cases of termination of employment, as well as to represent employees in the course of such proceedings.

Number of cases/disputes and costs

How many cases have been dealt with in your legal system by each category of court? Where possible, please provide statistics on the number of disputes in your country each year from 1990 to 2003 (or the latest year for which data are available). Where possible, please provide statistics on costs.

Table 1 below sets provides data on the number of labour law cases (of all types) brought before the courts, the number of cases decided and those still pending at the end of the year.

Table 1. Number of labour law cases dealt with by various courts, 1999-2003
Court Cases 1999 2000 2001 2002 1st half 2003
Appeals courts Submitted 1,428 1,881 2,217 1,084* 1082
Ruled on 1,304 1,739 2,117 1,114* 1029
Pending 250 391 491 461* 314
Circuit courts Submitted 25,669 26,936 25,886 28,900 14777
Ruled on 22,612 25,510 27,096 15,806* 13938
Pending 7,128 8,553 7,347 3,200 8338
District courts Submitted 180,788 223,554 324,382 302,100 188372
Ruled on 174,078 209,905 298,040 149,749* 174027
Pending 45,232 58,884 85,884 86,100 107015

* Data for the first half of 2002.

Source: Organisational Department, Ministry of Justice.

Reliable data concerning the number of individual labour law disputes and their subject matter is hard to come by in Poland. The registration system only allows labour law cases to be broken down into those relating to employment relationships, compensation for property, and the seeking of an injunction (where the object of the claim involves pecuniary assets or other 'convertible' items). Cases concerning employment relationships predominate, accounting for over 80% of all labour law cases at the district courts as well as the circuit courts. According to the information concerning new cases before the general courts prepared annually by the Judiciary and Notarial Department of the Ministry of Justice (Departament Sądów i Notariatu Ministerstwa Sprawiedliwości, MS), labour law cases most frequently concern conflicts over the termination of employment relationships.

Employees lodging labour law cases with the courts are not obliged to pay a registration fee, and only in exceptional circumstances can employees be asked to cover the cost of such proceedings

Litigation timeframe

Where possible, please provide statistics on the timeframe within which court cases over individual labour/employment disputes are settled.

For purposes of tracking labour law cases, figures are produced on the average duration of cases from submission to ruling, expressed in months - these are set out in table 2 below.

Table 2. Average duration of labour law cases before district and circuit courts, in months, by type of case, 2000-2
Court Type of case 2000 2001 2002
District courts Employment relationship 3.2 3.2 3.8
Compensation for property 4.8 5.7 6.6
Seeking injunction 1.9 1.7 2.0
Circuit court Employment relationship 6.4 5.8 5.6
Compensation for property 8.0 8.5 8.4
Seeking injunction 2.5 2.2 1.8

Source: Organisational Department, Ministry of Justice.

Other means of resolving individual disputes

Is there any kind of legal mechanism forcing or encouraging the two parties (management and employees) to resolve a dispute by prior negotiation? Where there is such a mediation process foreseen, please give details. Is there any evidence that mediation has had an effect on the volume of claims handled by courts? Are there any corporate policies built into the structure of organisations in your country specifically to deal with disputes? How are the employees’ representative bodies involved in the process?

The law requires that both the employer and the employee should make efforts to resolve any disputes in connection with employment in an amicable manner. Before going to court, employees thus have the right to demand that their case is heard by a special conciliation committee, provided that such a committee exists at the workplace. The conciliation committee is convened jointly by the employer and the trade union organisations present in its operations. If there is no union present at the workplace, the employer convenes the committee by itself, with the approval of the employees. The employer consults with the unions on the principles and procedures for the establishment of the committee, the number of its members, and its period of office (or alternately defines them itself with the prior approval of the employees). The following are barred from being members of the conciliation committee: people managing the employing operation on behalf of the employer; the organisation's chief financial officer and in-house lawyer; and people charged with personnel, employment and payroll matters. In conciliation proceedings, the general rule is that trade unions may represent the interests only of their members

The conciliation committee considers disputes at the request of the employee. It endeavours to resolve the dispute by way of amicable agreement within 14 days of the request’s submission. Where no such agreement can be reached, the committee refers the matter to the labour division of the relevant court.

Debate

Please summarise any current debate on the issue of employment/labour disputes litigated by courts in your country.

There are at least two aspects of court proceedings in labour/employment dispute cases that currently give rise to controversy.

The first perceived problem concerns the duration of the proceedings. Although the simplified rules for civil procedures apply to labour disputes, a proliferation of new cases has been engendering fears that such disputes can not be addressed with the expediency that they merit. The reality is that, quite often, a ruling handed down in such a case after several months’ delay may be difficult to implement, for instance due to the fact that the employer has been liquidated in the meantime.

Second, employers have also been complaining about some elements of the system, taking exception to what they consider to be the privileged position of employees. Employers point to the low cost to employees of bringing cases (see above under 'Number of cases/disputes and costs') and state that employees are thus not reluctant to take their claims before the courts, even in cases where their chances of effectively enforcing them are slim. (Rafał Towalski, Institute of Public Affairs [Instytut Spraw Publicznych, ISP] and Warsaw School of Economics [Szkoła Główna Handlowa, SGH])

Eurofound recommends citing this publication in the following way.

Eurofound (2004), Thematic feature - individual labour/employment disputes and the courts, article.

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