Central banker: Poland has a ‘sick job market’

“The labour market in Poland is sick, it needs to be more civilised,” Belka said on Tuesday.

National Bank of Poland head Belka argued that the problem with Poland’s so-called “junk contracts” is not only that they are “unconventional methods of employment” but that they are “given fiscal privileges”.

“Junk contracts” is the common name used for Civil Law Contracts (CLCs) “that now regulate the employment of anywhere between one and 1.4 million workers”, the World Bank said.

Junk contracts are temporary contracts designed for casual labour under which employment rights are limited, with employers not making health insurance or pension contributions.

“We must civilise the labour market. On the one hand we say we have too flexible a labour market, on the other hand, entrepreneurs say the opposite. In fact we are talking about completely different things than we should.”

In June, the government was in the process of preparing recommendations for dealing with the “junk contracts.” (rg/rk)