An employment contract is a contract regulated by the Labor Code, in which an employee performs work under the direction of the employer at a specified location and time. A contract for work is a civil law contract regulated by the Civil Code, in which the contractor undertakes to perform specific tasks without subordination to the employer. This distinction underlies everything else: only full-time employees have the legal right to paid vacation, notice, and a comprehensive insurance package. Below, we'll compare both types of contracts point by point.
To sum it up
- Employment contract – Labor Code, subordination, work in the place and at the time established by the employer.
- Agency agreement – Civil Code (Articles 734 and further), great freedom of action, absence of labor relations.
- Paid leave, notice periods and compulsory health insurance are legally provided only to full-time employees.
- To complete the tasks, it is installed minimum hourly rate , and for employment contracts – the minimum monthly wage.
Agency agreement and employment contract – legal basis
Employment contract Establishes the employment relationship described in Article 22 of the Labor Code: the employee undertakes to perform a specific type of work for the employer and under their direction, at a place and time determined by the employer, and the employer undertakes to hire the employee for compensation. Employees are protected by the entire Labor Code: working hours, vacation rules, occupational health and safety regulations, and contract termination rules.
Agency agreement is regulated by the Civil Code (Articles 734–751). The guarantor undertakes to perform a specific action for the client, and these provisions apply accordingly to service contracts (Article 750). The parties are formally equal—the client is not a superior, and the contractor largely organizes their work.
Important: The type of contract is determined by its content, not its title. According to Article 22, § 11 of the Labor Code, employment under conditions typical of labor relations is considered employment under an employment contract, even if the parties have specified a different term. Replacing an employment contract with a civil law contract under such conditions is prohibited.
Comparison table: employment contract vs. agency contract.
| Characteristic | Employment contract | Agency agreement |
|---|---|---|
| Legal basis | Labor Code | Civil code |
| Subordination | Yes – management by the employer, place and time of work. | No – the contractor organizes the execution of the work independently. |
| Paid leave | Yes – 20 or 26 days a year | Not by law (only if provided for by the contract). |
| Minimum wage | Minimum monthly wage | Minimum hourly rate |
| Notification | Statutory notice periods | Either party may terminate the contract at any time. |
| Health insurance | Required | Voluntary |
| Replacement | The work is done personally. | The transfer of authority to a third party is possible if provided for by agreement or custom. |
Leave, notice of dismissal and remuneration
Annual leave
An employee working under an employment contract has the right to annual paid leave: 20 days with less than 10 years of experience and 26 days With at least 10 years of service (Article 154 of the Labor Code). Periods of training are also included in the length of service. The provisions do not guarantee vacation for contractors; however, the parties may include it in the contract, for example, as a break with pay.
Termination of the contract
An employment contract for an indefinite or fixed term may be terminated with notice, the length of which depends on the employee's length of service with the employer: 2 weeks (less than 6 months), 1 month (at least 6 months) or 3 months (at least 3 years) – Article 36 of the Labor Code. The employee also has the right to appeal to a labor court. Either party may terminate the contract at any time (Article 746 of the Civil Code); however, termination without good cause may entail an obligation to pay damages.
Reward
For full-time employees, the minimum wage applies. with overtime allowances. For contracts, a minimum hourly rate – The rates for a given year are announced by government regulation. The contractor is not entitled to additional payments for overtime or night work unless otherwise provided for in the contract.
Employees working under an employment contract are required to have mandatory pension, disability, sickness, accident, and health insurance. This means they receive sick pay or sick pay, and pregnant women receive full insurance coverage and maternity benefits.
As a rule, the contractor is obliged to arrange mandatory pension, disability, accident and health insurance, but health insurance is voluntary . Anyone who does not participate in the program will not receive sick leave benefits. The exception is students under 26 years of age , Contract workers are not covered by ZUS (the Social Insurance Institution) and do not pay contributions unless they have a contract with their employer. It's best to clarify the details of your specific situation (overlapping insurance rights, multiple contracts) with ZUS.
Employment contract or agency agreement – which to choose?
An employment contract is more beneficial for those who seek stability. It provides for paid leave, notice periods, sick leave, child protection, and easier access to credit. However, it also entails higher costs and greater liability for employers.
The contract of appointment is ideal for temporary, seasonal or additional work, When flexibility is important, it's especially popular among students under 26, as the net salary is higher before social security contributions. Before signing, it's worth checking:
- Does the contract specify the hourly rate and the method for recording working time?.
- whether it provides for breaks or holidays, as well as notice conditions for termination.
- Is it possible to join a voluntary health insurance program?
- whether the actual conditions (fixed working hours, manager, place of work) in practice do not correspond to the terms of the employment contract.
If you have any doubts about whether your contract is considered an employment contract, you can consult the National Labor Inspectorate or a lawyer. You can also seek to establish the existence of an employment relationship in a labor court.
Frequently Asked Questions (FAQ)
Is the right to leave granted under a contract of agency?
Not according to the law. The Labor Code guarantees paid leave only to employees. A contractor may take breaks or paid leave if agreed upon by the parties in the contract.
Is the duration of the appointment contract counted as length of service?
The periods included in work experience are determined by regulations. Following amendments to the Labor Code that came into effect in 2026, periods of employment contracts may also be included in work experience, provided they are documented, for example, with a certificate from the Social Insurance Administration (SIA). It's worth checking with your employer or the SIA for the rules for inclusion in work experience.
Is it possible to move up to level L4 under a commission agreement?
It is always possible to take sick leave, but a contractor is only entitled to sick leave benefits if he has voluntarily taken out sick leave insurance and meets the conditions for its payment.
What is the notice period for a mandate agreement?
The Civil Code does not provide for a notice period—either party may terminate the contract at any time. However, the parties may include a notice period in the contract.
Which is better: an employment contract or an agency agreement?
For employees who require stability and social security, an employment contract is more beneficial. Freelancing is better suited for part-time work and situations where flexibility is essential, such as for students under 26.
See also
- What is the difference between a contract of agency and a contract for the performance of specific work?
- What is the difference between a deposit and a down payment?
- What is the difference between a credit and a loan?
- What is the difference between health insurance and health insurance?