A local master plan is adopted under a resolution of the municipality council and it can be appealed against to the administrative court by the voivoder or another entity with a legal interest in the case at any time. If the court finds a violation of the applicable rules or a gross violation of the […]
By amending the Building Law of 7 July 1994 (consolidated text in Journal of Laws of 2010, No. 243, item 1623) in 2003, the legislators allowed departure from the obligation to order unconditional demolition of a building or structure which was erected illegally. The said amendment introduced a legalization procedure under which illegal construction may […]
By its judgement of 19 November 2013 in case no. II OSK 2180/12, the Supreme Administrative Court held that it is contrary to the provisions of the Building Law of 7 July 1994 (Journal of Laws of 1994 no. 89 item 414, as amended) to require that an investor acquire the entire land on which […]
The sponsorship agreement is an innominate agreement, which is not expressly regulated under the Civil Code. It is concluded under the principle of freedom of contract, that is the contracting parties can structure the legal relationship between them as they choose, unless the substance or purpose run counter to the nature of such relationship, statute, […]
In legal parlance, a business name (firma) is the designation of an undertaking, whether a sole trader, partnership, or company. The principal rules for creating business names are laid down under the Civil Code (“CC”) and the Commercial Companies Code (“CCC”). The business name of a natural person (individual) is his or her first and […]
Disputes, being an inherent part of doing business, are time consuming, costly, and can potentially harm the reputation of the business involved. Unfortunately, the Polish administration of justice is still a far cry from satisfactory effectiveness in dealing with such issues, as demonstrated by Poland being ranked as low as 97th among 142 countries in […]
Companies limited by shares, that is the limited liability company and the joint-stock company, represent one of the two groups of capital companies identified under the provisions of the Commercial Companies Code (“CCC”). In the case of both of the above companies, the law requires that certain acts in law be performed only with the […]
The relevant amendment to the Code of Civil Procedure (“CCP”) was enacted under the Act of 10 May 2013 (Journal of Laws of 2013, item 654) and became effective on 7 July 2013. Generally speaking, the purpose of the amendment is to put an end to the abuse of the electronic proceedings by writ of […]
Public availability of land and mortgage registers is a significant factor for the reliability of real property transactions. Despite that until recently, statutory regulations did not support practical application of that principle in a manner that would correspond with the level of technology and needs of the public. Modifications in that regard are introduced under […]
A blank bill of exchange, also known as an inchoate bill of exchange, is a security that is often used to secure receivables and as their repayment bond. It replaces cash offered as a deposit. Deciding to apply this security instrument, we should bear in mind several points which can protect us from the risk […]
Legal regulations, and in particular the provisions of the Civil Code, specify a number of agreements frequently employed in business dealings. Yet, it must be borne in mind that the solutions offered by the drafters are not always in line with what is intended by the parties seeking to contract certain obligations. Under such circumstances, […]
Special Economic Zones (SEZ) are an administratively separate part of the Polish territory where business can be conducted on preferential conditions as laid down under the Act on Special Economic Zones of 20 October 1994 (Journal of Laws of 2007, no. 42, item 274, consolidated text, as amended) and under all the related implementing regulations. […]
On 17 June 2013, the Act on Amending the Labour Code and Certain Other Acts of 28 May 2013 (Journal of Laws, item 675) became effective. The Act amends inter alia the provisions of the Labour Code regarding the maternity leave, additional maternity leave, additional leave on terms of the maternity leave, and parental leave, […]
The so-called Small Power Tripack, i.e. the Act on Amending Power Law and Certain Other Acts of 26 July 2013 (Journal of Laws of 2013, item 984) became effective on 11 September of this year. The amendment to the legislation was forced by complaints being filed against Poland by the European Commission to the European […]
A company limited by shares is a legal vehicle for conducting business in Poland that foreign undertakings choose most often. An alternative to that is the establishment in Poland of a branch office of a company based abroad. Setting up of a branch of a foreign company in Poland is governed by the applicable legal […]
One of the significant issues faced by companies limited by shares planning to become re-established as partnerships (for instant as the recently more and more popular limited joint-stock partnership (spółka komandytowo-akcyjna)) is the issue of taxation of the accumulated equity capital funds. In particular, case-law offers differing views as to whether in case of such […]
In its judgement of 9 October 2012 (case file III SA/WA 428/12), the Regional Administrative Court ruled in line with the existing case-law which states that in the event of distribution of property dividend revenues are not generated and consequently there is no related tax obligation. The above issue arose against the background of the […]
It is with increasing frequency that various employee monitoring systems are put in place in working establishments by employers, expecting them to improve work performance or prevent leaks of business secrets. It is a common practice to monitor the websites visited by employees, to check the contents of company e-mail box allocated to staff members, […]
Pursuant to Article 30 § 4 of the Labour Code, when terminating a contract of employment concluded for an indefinite term, the employer is required to provide in the termination notice the grounds for termination of the employment relationship. The grounds for termination must be specific and true, they should provide precise indication of the […]
The Act on Reducing Certain Administrative Burdens in the Economy of 16 November 2012 seeking to eliminate or limit some of the onerous and redundant administrative burdens came into force on 1 January 2013. The enacted amendments relate among others to the provisions of the Environment Protection Law of 27 April 2001 and obligations imposed […]
Pursuant to Article 232 § 1 of the Civil Code, land owned by the State Treasury and located within the administrative boundaries of cities and land owned by the State Treasury located outside those boundaries but included in the city’s master plan and allocated for performance of the tasks of its economy, as well as […]
The Act on Reducing Certain Administrative Burdens in the Economy of 16 November 2012 (Journal of Laws no. 1342 of 30 November 2012) came into force on 1 January 2013. The amendments include among others simplification of the tax system, making interpretations issued by public authorities open to the public, new principles governing settlement of […]
On 8 February 2013, the Sejm enacted a new law on the terms of payment in commercial transactions. As argued in the rationale for the bill, the purpose of the legislation is to combat the growing problem of late payments by introducing instruments improving the effectiveness of payments in transactions between undertakings and between undertakings […]
On 13 February 2013, the Convention on Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income was signed by Poland and the United States (“Agreement”). If both countries manage to complete the ratification process by the end of this year, the Agreement will become effective at the beginning […]
This was the holding of the Constitutional Tribunal under its judgement of 10 July 2012 (Case File No. P 15/12), cancelling—as of the date of its publication in the Journal of Laws, i.e. 19 July 2012—the second sentence of Article 76(1) of the Act on Land and Mortgage Registers of 6 July 1982 (“Mortgage Act”). […]
On 11 April 2012 the Supreme Administrative Court (“SAC”) rendered a judgement consolidating the rules governing participation of environmental organizations in administrative proceedings (Case File No. II OSK 122/11). An environmental organization, i.e. a voluntary association whose objects comprise broadly defined environment and nature protection as well as pro- environmental activities, may notify its desire […]
Without any doubt the construction permit design is among the most important documents an investor requires to commence construction of any building or structure. Without the construction permit design it is not possible to obtain the construction permit. Commencement of building works without a valid construction permit amounts to illegal development. If this happens, the […]
In its Resolution (Case File No. I FPS 3/12) of 25 June 2012, the Supreme Administrative Court (“SAC”) composed of seven judges held that the export of goods takes place also in a situation when the goods exportation procedure commences in a country other than Poland. The adoption of the SAC Resolution was prompted by […]
On 9 July 2012, the Constitutional Tribunal rendered a judgement in which it addressed the constitutionality of the original wording of Article 14 of the Act on Recycling of End-of-Life Vehicles (Journal of Laws of 2005 no. 25 item 202, as subsequently amended) (“ELV Recycling Act”). The ELV Recycling Act imposes on manufacturers and importers […]
Ruling on a point of law as to whether or not perpetual usufruct can be extended after the expiry of the term for which it was established if the perpetual usufructuary or his/her heirs request such extension in the period prescribed under Article 236 § 2 of the Civil Code (“CC”), i.e. within the last […]
Pursuant to the provisions of the Labor Code, if the employment relationship is terminated or expires, the employee is entitled to a cash equivalent in lieu of accrued vacation leave or part thereof. The amount of the equivalent may differ depending on the year in which the right to vacation leave becomes vested in the […]
Pursuant to Article 2a of the Act on Public Roads of 21 March 1985 (Journal of Laws of 2007 no. 19 item 115, consolidated text, as subsequently amended) national roads are owned by the State Treasury and regional roads, county roads, and municipal roads are owned by the respective regional, county, or municipality local government. […]
Article 46(4a) of the Public Procurement Law of 29 January 2004 (Journal of Laws of 2010 no. 113 item 759, consolidated text, as subsequently amended) (“PPL”) has generated controversies since the very moment it became effective. Under the said provision, the contracting authority is entitled to retain the bid security with interest if the contractor—having […]
Pursuant to the Act on Protection of Competition and Consumers of 16 February 2007 (Journal of Laws of 2007, No. 50, item 331, as amended) (“Act”), the President of the Office for Protection of Competition and Consumers (“UOKiK”) is entitled to adopt a decision making commitments binding on an undertaking, which represents an amicable conclusion […]
In its Resolution of 19 March 2012 (I FPS 5/11), the Supreme Administrative Court (“SAC”) composed of seven judges held that under the provisions of the Act on Tax on Goods and Services it is possible to make the following statement: Acquisition of a money receivable (which must be stressed, at one’s own risk) for […]
In its Resolution (Case File No. I FPS 3/12) of 25 June 2012, the Supreme Administrative Court (“SAC”) composed of seven judges held that the export of goods takes place also in a situation when the goods exportation procedure commences in a country other than Poland. The adoption of the SAC Resolution was prompted by […]
Ruling on a point of law as to whether or not perpetual usufruct can be extended after the expiry of the term for which it was established if the perpetual usufructuary or his/her heirs request such extension in the period prescribed under Article 236 § 2 of the Civil Code (“CC”), i.e. within the last […]
On October 24, 2011 the Supreme Administrative Court (hereinafter the “NSA”) adopted a resolution on the taxation of employer funded medical policies (court file no II FPS 7/10). NSA concluded that the employer is required to plus the value of medical subscriptions to employee’s revenues from employment, which constitutes base for personal income tax contributions. […]
Under general principles of tax law the taxpayer is solely liable for incurred arrears. However, there are important exceptions to this rule. One of the most marked exceptions is the joint liability of board members with all their assets for the tax arrears of limited liability and joint stock companies, even prior to incorporation. However, […]
On January 17, 2012 the Supreme Administrative Court held that companies in breach of passenger car leases may treat liquidated damages due upon earlier termination of operation lease agreement as a deductible operating expense when the car was used by a board member who was later removed (court file no II FSK 1365/1310). The Court […]
The planned changes in the Construction Law seem to indicate that the legalization of unpermitted structures will be even more costly than anticipated under the current statutory scheme. In Poland, unpermitted structures are not automatically subject to demolition. Instead, building supervision authorities inspect the subject property in an effort to legalize it. An order for […]
On 6 January 2012, the Code of Civil Procedure was amended in accordance with statute effective on April 28, 2011(Journal of Laws No 138, pos. 807). The amendment introduced an internet notice requirement for auctions of real property seized in the course of enforcement proceedings. The concept of this amendment was first proposed in the […]
The Polish Labor Code has been amended as of January 1, 2012. The most conspicuous amendments are those regarding: parental leave, child rearing leave, the period during which accumulated vacation time must be used, work on Sundays and holidays, and the construction or reconstruction of a work spaces. As of January 1, 2012 through December […]
As of January 1, 2012 a new Geological and Mining Law has taken effect (Journal of Laws of 2011, No. 163, item 981) (hereinafter the “Act”). The Act is a comprehensive revision of Polish geological and mining law. One of the most important changes is the restoration of the previous model of mineral ownership rights. […]
Poland’s Ministry of Economics has enacted a package of laws on energy, including a new Energy Law Act (the “New Energy Law”), as a response to the EU’s “third energy package”, i.e. the Directive No. 2009/72/EC concerning common rules for the internal market in electricity, the Directive No. 2009/28/EC on the promotion of energy from […]
The President of the Office of Competition and Consumer Protection (hereinafter the “UOKiK”) has steadily increased fines particularly for telecommunications companies who infringe upon collective consumer interests. As of 2008 these fines have usually been in the millions ranges, however late last year one fine reached a staggering amount of 21.262.842 PLN. The legal application […]
