The Differences between PEO and EOR in Poland

Introduction

When expanding your business to Poland and hiring staff, making the correct choice between using anEmployer of Record (EOR) and a Professional Employer Organisation (PEO) is important. Under the Polish Labor Code (Kodeks pracy), these models serve distinct purposes. Both offer payroll, compliance, and HR services, but their legal and operational roles differ. This guide will compare EOR and PEO in Poland to help you choose the best solution for your situation.

Legal Employer Status

The primary difference lies in the legal employer status.

Employer of Record (EOR): The EOR is the official legal employer. We sign the employment contracts, register employees with the Social Insurance Institution (ZUS), and assume all compliance risks. Your company does not need a local Polish entity.
Professional Employer Organisation (PEO): Your company remains the legal employer. You must have a registered Polish entity (e.g., a spółka z o.o.). We, as the PEO, acts as a service provider managing administrative tasks, HR function, payroll, but legal liability remains with you.

Feature	Employer of Record (EOR)	Professional Employer Org (PEO)
Legal Employer	The EOR Provider	Your Company
Local Entity	Not Required	Required
Compliance Risk	Assumed by EOR	Retained by Your Company
Payroll & Tax	Full management (ZUS, PIT)	Processed on your behalf by our team
Work Permits	Sponsored by EOR	Managed by us on your company’s behalf
Best For	Rapid entry; small-to-mid teams	Polish entities with larger teams

Operational Services in Poland

Employer of Record (EOR) Services: EORs provide a suite of employer services:

Recruiting and hiring
Onboarding
Payroll processing in compliance with Polish regulations
Taxes: Handling all aspects of Polish employment taxes
Benefits administration
Terminations under Polish law
Work permits and visa sponsorship for international hires
Localisation of employment terms and conditions

Professional Employer Organisation (PEO) Services: PEOs primarily focus on:

Core payroll processing and management
Accounting related to payroll
Tax filings and reporting
HR Administration: Providing access to HR systems and support
Employee benefits setup and administration

Cost Analysis

EOR: Higher monthly fee per employee, but eliminates the legal entity ownership and maintenance costs of a Polish subsidiary.
PEO: Lower service fees, but requires the overhead of maintaining a registered office, accounting, and corporate tax compliance in Poland.

Strategic Recommendation: Use an EOR to hire quickly without legal complexity. Use a PEO if you already have a Polish entity and need to outsource high-volume HR administration.

Check our affordable prices for EOR here or contact us for tailored PEO pricing.