Employment relationship – everything you need to know
A proper understanding of the principles underlying an employment relationship is the foundation of every employee’s security. What is an employment relationship? What is the basis of an employment relationship? When does an employment relationship arise? What are the different types of employment relationships?

TABLE OF CONTENTS
- What is an employment relationship?
- Characteristics of an employment relationship
- Methods of establishing an employment relationship
- Types of employment relationships
- Employee rights in connection with an employment relationship
- Termination of an employment relationship
What is an employment relationship?
The concept of an employment relationship is one of the most important definitions contained in the Labor Code. In its simplest terms, an employment relationship means a bilateral legal relationship between an employer and an employee. An employment relationship describes a situation in which an employee undertakes to personally perform work for the company, under its direction, and at a designated place and time. In return, the employer is obligated to pay the agreed remuneration.
Characteristics of an Employment Relationship
Understanding how the concept of an employment relationship works is important for both the employee and the employer. It is a specific legal relationship regulated by the Labor Code. This document defines the rights and obligations of the parties to the employment relationship, namely the employee and the employer.
But what, in practice, makes a given relationship an employment relationship and not, for example, a contract of mandate? An employment relationship is characterized by several key elements:
- Subordination to the employer is the most important characteristic. Work is performed under the boss’s direction. This means you must follow their instructions and guidelines regarding how to operate.
- Personal performance of work – you must perform your duties yourself. In this case, there is no possibility of sending a replacement, as your personal performance is what counts.
- Payment – an employment relationship cannot be unpaid. You are entitled to remuneration for each month of work, which as an employee you cannot waive.
- Assigned place and time – the employer determines the specific work location and the time frame during which you must be available.
- Employer risk – the company, not you, is responsible for the work results and any potential losses. For example, if there is a power outage in the office, the employer is obligated to pay you for the time you were available to work.
If these conditions of an employment relationship are met, it constitutes a full-time position—regardless of the name of your contract. Together, these principles constitute an employment relationship that provides the employee with the broadest legal protection.
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Methods of Establishing an Employment Relationship
An employment relationship can be established in several ways, depending on the specific position. Although the employment relationship is most often established through the signing of an employment contract, labor law also lists other forms:
- Appointment (often in high-ranking government positions),
- Appointment (in the civil service),
- Election (e.g., mayor, district head),
- Cooperative employment contract.
- Concluding an employment relationship in any of these forms means that a lasting legal relationship protected by law is created.
Types of Employment Relationships
The terms of your employment with the company depend on the type of contract you choose. Each type creates a legal relationship, but they differ in purpose and duration. The Labor Code distinguishes three main types:
- A trial period contract is the first step in most companies. It serves to assess the employee’s qualifications and determine whether the job suits them. It can be concluded for a maximum of three months.
- Fixed-term contract – concluded when the parties plan to collaborate for a specific period. It’s important to remember the “33 and 3” rule – the total duration of such contracts cannot exceed 33 months, and their number cannot exceed three. The fourth contract automatically becomes an indefinite-term contract.
- Indefinite-term contract – the most stable type of contract, providing the employee with the greatest sense of security and the longest notice periods.
During their duration, the employment relationship may change (e.g., a raise or a change in position), which is usually done through an addendum. If your situation requires flexibility, a temporary employment contract is an interesting alternative, and it’s worth knowing more about it in terms of its differences from a standard full-time job.
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Employee Rights in an Employment Relationship
When an employment relationship is in effect, the employee benefits from a comprehensive package of protections not provided by civil law contracts. According to labor law, these include not only obligations but, above all, privileges that arise directly from the employee having a signed contract.
The most important rights include:
- Wage protection – the employer is obligated to pay wages on time. Importantly, income from employment is subject to special protection against deductions.
- Safe working conditions – the company must provide an appropriate workstation and ensure hygienic and safe working conditions. This is part of the broadly understood employer risk.
- Seniority and its benefits – each day of employment builds your seniority. Its length determines, among other things, the length of vacation leave and the notice period, i.e., the time that must elapse between submitting the documents and actually leaving the company.
- Employment stability – in the event of termination of an indefinite-term contract, the employer must provide a specific reason for its decision. Termination of employment cannot be arbitrary and is subject to review by the labor court.
It’s worth remembering that the labor inspector oversees compliance with these rules. If you feel your rights are being violated, remember that the provisions of the Labor Code are on your side.
Termination of Employment
Knowing how a relationship formally ends is just as important as the moment the contract is signed. Termination of employment is a broad concept, which in practice is divided into two main modes. These modes differ in whether the termination occurs by the will of the parties or as a result of sudden, unexpected events.
Termination of Employment
This is the most common method of ending employment, based on a declaration of intent. Termination of employment can occur by mutual consent or by unilateral notice.
Key aspects of this process include:
Notice period – the law protects employees against sudden loss of income. This period depends directly on the length of service with a given employer.
Immediate termination – in special circumstances (e.g., serious breach of duty), termination without notice is possible.
Reason for termination – in the case of termination of an indefinite-term contract, the company must justify its decision. If the employee deems the termination unfair, the matter will be resolved by a labor court.
Termination of Employment
In this situation, no one gives notice – the employment relationship terminates automatically. This occurs by operation of law at times specified in the law. The most common example is the death of the employee, but termination also occurs upon the death of the employer (an individual) or after three months of the employee’s absence due to temporary arrest.
Regardless of how the employment relationship ends, the employer is obligated to settle accounts with you and issue an employment certificate. The labor inspector oversees the proper conduct of these processes, verifying compliance with the provisions of the Labor Code.
Every employee should know that the basis for establishing an employment relationship imposes specific requirements on both parties. An employment relationship is characterized primarily by the obligation to perform work conscientiously. Remember that diligence in the performance of work and compliance with the rules imposed by the employer are your primary obligations within the work process.
If you feel that your working conditions or work location are inconsistent with what is specified in your contract, you have the right to intervene. Remember, too, that hiring an employee must be within the scope of the employment relationship, which includes adhering to standards for specified working hours. Knowing your rights is the foundation of a secure and stable career!
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