Often, employers using the services of our PRWT accounting office often ask whether they are required to create a ZFŚS. The answer to this question is – it depends …

Employers operating in the form of budgetary units and local government budgetary establishments have an absolute obligation to establish a ZFŚS, regardless of the number of employees. In relation to other employers, the obligation to establish a Company Social Benefits Fund is relative.

The wording of Art. 3 par. 1 and 2 of the Polish Act of March 4, 1994 on the company social benefits fund (consolidated text Journal of Laws of 2021, item 746) (hereinafter referred to as the “Act”) indicates that employers who employing on 1 January of a given year, at least 50 full-time employees are required to establish a Company Social Benefits Fund. On the other hand, employers employing at least 20 and less than 50 full-time employees as of January 1, create ZFŚS at the request of the company’s trade union organization.

However, this regulation is not absolute, as evidenced by the content of Art. 4 of the Act. Pursuant to this provision, employers may decide not to establish a ZFŚS in a collective labor agreement or in the remuneration regulations. There is, however, one condition: agreeing this decision with the trade unions operating in the workplace or, in the absence of them, with an employee selected by the staff to represent its interests.

It should be emphasized that the Act contains regulations which are one of the ways for employers to implement the provisions contained in Art. 16 and 94 points 8 of the Labor Code.

For the record:

Art. 16 of the Labor Code:

“The employer, according to the possibilities and conditions, meets the living, social and cultural needs of employees”

Art. 94 point 8 of the Labor Code:

“The employer is obliged in particular to: (…) satisfy the social needs of employees as far as possible”

The very way in which the employer will satisfy the above-mentioned needs (whether he will do it through the Social Fund) depends only on him.