The Differences between PEO and EOR in Poland

Introduction

When expanding your business to Poland and hiring international staff, understanding the distinction between an Employer of Record (EOR) and a Professional Employer Organisation (PEO) is crucial. Both offer payroll, compliance, and HR services, but their legal and operational roles differ significantly. This guide will compare EOR and PEO in Poland across key areas to help you choose the best solution for your global hiring needs.

Legal Employer Status: EOR vs PEO in Poland

Employer of Record (EOR): The EOR becomes the legal employer of your staff in Poland and assumes all compliance responsibilities with Poland’s employment laws and regulations. This means that the EOR is the official employer of your team in Poland.

Professional Employer Organisation (PEO): The PEO provides payroll services and other HR functions, but your company remains the legal employer responsible for compliance. The PEO does not take on the legal employer status.

With an EOR, foreign companies can hire talent in Poland and operate without establishing a local subsidiary or legal entity. This allows companies to build their team in Poland quickly without the complexities of setting up a Polish entity.

Services Offered by EOR and PEO Providers 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 Comparison: Hiring in Poland with an EOR vs PEO

The costs associated with an Employer of Record (EOR) service in Poland may be higher than those of a PEO. This reflects the additional compliance obligations and risks the EOR assumes as the legal employer.

PEO services generally have lower rates since your company remains the legal employer. PEOs offer a more budget-friendly solution focused on core administrative tasks.

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

Key Benefits of Using an Employer of Record (EOR) in Poland

Acts as the legal employer in Poland, enabling you to hire and manage employees without establishing a local legal entity. This simplifies global expansion into the Polish market.

Significantly simplifies legal compliance by assuming all employer duties and ensuring adherence to Polish employment laws and regulations.

Manages compliance risks associated with various employment aspects, including hiring, payroll, taxes, and terminations.

Provides broader services beyond basic HR administration, such as managing work permits for international employees and offering localisation services.

Key Takeaways for EORs in Poland:

EORs facilitate hiring in Poland without the need for a local entity.
They take on all legal employer compliance responsibilities.
EORs offer a comprehensive range of services, including work permits and localisation.

Key Benefits of Using a Professional Employer Organisation (PEO) in Poland

Provides streamlined payroll and HR support in Poland, including efficient payroll administration, access to HR systems, and assistance with employee benefits setup.

Offers a more affordable solution compared to EORs as they do not assume full legal employer responsibilities.

Provides flexibility as your company retains control over critical aspects such as hiring and firing policies, workplace rules, and organisational culture.

Manages payroll taxes and assists with employee benefits, offering partial outsourcing of employer obligations while you remain legally responsible.

Key Takeaways for PEOs in Poland

PEOs deliver efficient payroll and HR support in Poland.
They represent a budget-friendly solution in comparison to EORs.
Your company remains the legal employer and retains overall compliance responsibility.

Conclusion

Both EOR and PEO services streamline the process of hiring in Poland, but they present distinct approaches regarding services, legal employer status, compliance management, and costs. EORs are ideal for companies seeking to hire in Poland without establishing a local entity, providing comprehensive employer services, including work permits. PEOs, on the other hand, offer a more cost-effective solution focused on efficient payroll support while the client company retains legal employer responsibilities. Carefully evaluating your specific service requirements, budget constraints, and compliance liability preferences is essential when determining whether an EOR or a PEO in Poland is the optimal solution for your international hiring strategy.