The fourth group of entities obliged to implement ECP has less than a month to conclude the ECPs management agreement with a financial institution

We would like to remind you that the entities in the 4th stage of ECP implementation have less than one month left to conclude the ECPs management agreement with a financial institution. Until 23 April 2021, entities employing at least 20 employees are required to conclude the ECPs management agreement with a financial institution, and until 10 May 2021 – the agreement on the ECPs maintenance (unless they have the micro-entrepreneur status).

Therefore, we would like to remind you about the most important issues related to the implementation of ECP in your company.

What are employing entities?

The obligation to apply the Employee Capital Plans Act is imposed by the legislator on the employing entities, i.e. as defined in Article 2 paragraph 1 point 21 of the Employee Capital Plans Act:

  • employers referred to in Article 3 of the Labour Code,
  • outwork employers,
  • farming co-operatives or co-operative associations of farmers,
  • recipients of services,
  • entities with the supervisory board, provided that its members are remunerated for the performance of their functions.

If your company meets the above criteria and employs less than 20 people, you should immediately take action to implement the ECPs for your employees.

No later than on:

  • 23 April 2021, you must sign an agreement on the ECPs management,
  • 10 May 2021, you must sign an agreement on the ECPs maintenance.

We would also like to remind you that in the 4th stage of ECP implementation there are also entities of the public finance sector. Unlike in the earlier stages of implementation, the Employee Capital Plans Act provides here for separate deadlines for the conclusion of agreements on the ECPs management and on the ECPs maintenance.

Employing entities with the status of micro-entrepreneurs within the meaning of the Act of 6 March 2018 – Entrepreneurs’ Law are exempted from the obligation to implement the ECP, if all employed persons submit to the employing entity their statements on resignation from making payments to the ECP.

Payments towards the employee capital plans. How much are they?

Payments towards the ECPs are basic or supplementary. They are financed by both the employer and the ECP participant.

Basic payment (obligatory) Supplementary payment (voluntary) 
Employer’s share1.5% of the gross remunerationup to 2.5% of the gross remuneration
Employee’s share2% of the gross remuneration*up to 2% of the gross remuneration

*The basic payment by an employee may be up to 2% of his/her gross remuneration, but not less than 0.5%, provided that his/her remuneration earned from various sources in a certain month does not exceed 1.2 times the minimum remuneration.

The Law Firm of D.Dobkowski sp.k. offers legal assistance to employers who are required to implement PPK

We are aware that the Employee Capital Plans Act is a challenge for each employer. Therefore, our team of ECP specialists assists employers through:

  • preparation of internal regulations concerning the introduction of the ECPs,
  • selection of a financial institution managing the ECPs,
  • providing support in concluding the ECPs management and maintenance agreements with a financial institution (including a review of compliance with agreements terms proposed by a financial institution),
  • providing support in electing employee representatives,
  • representing the employer in negotiations with the community representation,
  • fulfilling the employers’ information obligations towards the ECPs participants and a financial institution with which the employer has concluded the ECP management agreement.

If you are interested in more detailed information on the above-mentioned issues, please contact us.

Information contained in this publication is of general nature and does not relate to the situation of a particular company. Due to frequent changes in Polish legislation, we kindly request that you make sure that on the day you are reading this publication the information contained therein is still up to date. We suggest that you consult our advisers before making any decisions.