Contract of mandate
Contract of mandate
Contract of mandate is a civil-law agreement regulated by the Civil Code. The mandatary assumes the obligation to perform a definite act in law for the mandator.
The parties to the contract may be both natural persons and legal persons.
The contract of mandate, as a civil-act agreement, is characterised by:
- freedom to shape the contents of the contract,
- lack of the obligation to determine the daily and weekly working time limits,
- freedom of introduction of paid sick leaves and holidays,
- freedom in setting the date and place of work performing,
- the possibility of replacing the mandatary by a third party.
In case the contract of mandate includes too many elements of employment, the contract is converted to the employment contract.
Contract of mandate may be terminated at any time, by any of the parties to the contract. In case the mandate requires payment, the contract has been terminated by the mandatary without any important reason, the mandatary is liable for the resulting damage. Termination of the contract of mandate takes effect immediately, unless the party in the filled termination provides a different termination date. Additionally, the contract itself may include the date of termination.
Contributions
| Insurance entitlement | Old-age pensions insurance | Disability pensions insurance | Sickness insurance | Work accident insurance | Health insurance |
| University student or other student under the age of 26 | NO | NO | NO | NO | NO |
| Person employed in a different company, who receives at least the minimum wage | YES or NOT (voluntary) |
YES or NOT (voluntary) |
NO | NO – if there are no old-age pensions and disability pensions insurance contributions; YES or NOT, if there are old-age pensions and disability pensions insurance contributions (YES if the contract is performed in the mandator’s premises, NO – if it is performed outside the premises) |
YES |
| Person already employed by the same employer | YES | YES | YES | YES | YES |
| Person not employed | YES | YES | YES or NOT (voluntary) |
YES if the contract is performed in the mandator’s premises, NO – if it is performed outside the premises | YES |
| Person employed in a different company, who receives lower remuneration than the minimum wage | YES | YES | YES or NOT (voluntary) |
YES if the contract is performed in the mandator’s premises, NO – if it is performed outside the premises | YES |
|
Retiree, disability pensioner |
YES | YES | YES or NOT (voluntary) |
YES if the contract is performed in the mandator’s premises, NO – if it is performed outside the premises |
YES |
| Another contract of mandate – at the same time |
YES (up to the minimal wage) or NOT (voluntary after reaching the minimal wage from the other contracts) |
YES (up to the minimal wage) or NOT (after reaching the minimal wage from the other contracts) |
NO | NO – if there are no old-age pensions and disability pensions insurance contributions; YES or NOT, if there are old-age pensions and disability pensions insurance contributions (YES if the contract is performed in the mandator’s premises, NO – if it is performed outside the premises) |
YES |
| Entrepreneur |
YES or NOT (voluntary only when you pay full amount of social contributions) |
YES or NOT (voluntary only when you pay full amount of social contributions) |
NO | NO – if there are no old-age pensions and disability pensions insurance contributions; YES or NOT, if there are old-age pensions and disability pensions insurance contributions (YES if the contract is performed in the mandator’s premises, NO – if it is performed outside the premises) |
YES |
The rate of contributions to social insurance:
- Old-age pensions insurance - 19,52% of total contribution (9,76% is paid both by the payer and the insured)
- Disability pensions insurance - 8% of total contribution (6,5% is paid by the payer, and 1,5 % by the insured)
- Sickness insurance - 2,45% of total contribution (fully financed by the insured)
- Work accident insurance – varies depending on the level of risk and amounts between 0,67% and 3,86% (fully financed by the payer)
- Health insurance - 9% of total contribution for social insurance reduced by 13.71%, which is funded by the insured together with the contribution for health insurance (7,75% is financed from the tax paid, and 1,25% is financed by the insured).
Remember!
Contract of mandate, if only the person receives at least minimum wage, and is obliged to pay contributions for social insurance and to the Labour Fund, is included in the 365 days that entitle to the unemployment benefit.
From 1 January 2017 the minimum wage per hour for those working on the basis of contract of mandate is set at 13 PLN.
