Polish Business - Poland makes an already unfriendly business environment less friendly

Warsaw, Poland 9 July 2007 The Polish Government has increased pressure on Poland's small businesses by establishing new criminal penalties for owners and managers.

Small businesses will be examined to confirm that they have binding contracts with their employees. And they will be checked to be sure that no people have accumulated vacation time from the previous year.

What is changed is that the task has been moved from Regional Government Offices to the State Labor Inspectors.

And as of 1 July, 2007, infractions are criminal offenses.

The standard fine is 2000 zloty but fines may be as high as 30000 zloty.

The fines will be levied not against the business but against the individual owners and managers.

In January of this year the Heritage Foundation criticized Poland as being business unfriendly and pointed out what problems existed. See In Poland Freedom From Government, Corruption and Labor Freedom Weak - Report

Prime Minister Kaczynski commented that he wanted emigrant Poles to come back to Poland after they have gained experience and start a business in Poland. See Millions Of Polish Workers Want To Leave Poland - Poll

But the Heritage Foundation showed Poland to be a business unfriendly country where people would rather emigrate to the West than stay in Poland and try to run a business.

Now a business owner faces criminal penalties if workers accumulate vacation time or there is some difference in opinion between a labor inspector and a business owner over the type and terms of a contract agreed to by a business owner and an employee.

And, as an added does of deterrence, in line with the creeping centralization of power under the Kaczynski Regime, the inspections will be done by the State Labor Inspectors and not the Regional Offices.

Source:masterpage.com.p