The development of the IT sector in Poland in recent years has assumed a pace that has surprised even the greatest optimists. The sector is growing tremendously, as evidenced, for example, by more than 11,000 business activities in the IT industry established in 2024 alone. The industry is one of the fastest growing sectors of the economy not only in Poland, but also globally. Polish IT specialists enjoy a great reputation not only on the job market in Poland, but also around the world. They are renowned for their subject matter expertise and problem-solving skills. Moreover, they adapt perfectly to changes in a rapidly growing industry.
Cooperating entities in the IT industry enter into various types of contracts. Except for employment contracts or mandate contracts, more and more contractors are reaching for Business-to-Business (B2B) contract. This solution is a key element of cooperation between companies, providing transparency and security for both parties. Contracts specify the scope of services to be provided, as well as the terms of performance and financial terms.
Given that B2B contracts in IT sector are becoming more popular than traditional employment contracts, it is particularly important to define intellectual property rights and confidentiality clauses to protect sensitive data and technology. A well-designed B2B contract can also include provisions for technical support and possible penalties for failure to meet the terms of the contract, which helps maintain a high level of service quality.
B2B Contract vs Employment Contract
Business-to-Business contract is a legal agreement between two business entities. Under it, one of the contractors provides certain services to the other. Often the service providers are one-person companies. B2B contract between the parties establishes a business relationship in which both B2B contractors are considered autonomous entities, rather than an employer – employee type relationship.
Talking about the differences between B2B contracts in IT industry in Poland and employment contracts it is worth noting that Business-to-Business contracts are characterized by greater flexibility and independence for both parties. Under a traditional employment contract, an employee is entitled to benefits, such as paid vacation, sick leave and special leave. In the case of a B2B contract, there are no such privileges. The employer pays social security contributions and taxes on the salary. It is also necessary to specify the place and time of work performance. In a B2B contract there is no such requirement – none of the parties can impose on the other the place and time of performance of tasks. The self-employed person is obliged to independently fulfill the obligations to pay contributions and personal income taxes within the Polish law statutory deadline. In addition, under B2B it is possible to use subcontractors, which is not allowed under an employment contract.
Among the benefits of B2B contracts is access to the talent pool. Choosing this model of cooperation, companies open the door to a more broad group of professionals whose B2B contracts give flexibility and potential financial benefits. These contracts also mean simplified engagements, minimized risk and access to a global network of specialists. They also bring several financial advantages for both companies and contractors. For contractors, the B2B form allows greater control over revenues and costs, thanks to the ability to deduct deductible expenses, which can lead to a smaller tax base. In Poland, those doing business in the B2B form can benefit from flat tax, which is a form of flat tax. The flat tax rate in Poland is 19% and is independent of the amount of income earned. In addition, companies can flexibly manage their project budget by engaging experts only for the duration of a specific project, which allows for efficient use of funds. With B2B contracts, both parties can also negotiate more favorable rates, further increasing potential savings.
Types and legal framework of B2B contracts in Poland
Depending on the needs of the parties, there are different types of B2B contracts in IT sector in Poland. A few words about the most commonly used contracts:
Service level agreements (SLAs) – this type of contract is largely common in the IT industry. This contract is a guarantee for both the customer and the service provider. SLA specifies the minimum scope of services provided to the customer and defines the expected level of service.
Software development agreements play a key role in software development. They cover key aspects such as intellectual property rights, provide clarity on ownership and use, and define software maintenance responsibilities.
Consulting agreements set expectations and IT consulting outcomes, as well as the scope of that consulting. They provide a comprehensive overview of responsibilities and compensation and foster a solid understanding between the consulting entity and its clients.
B2B contracts in IT industry in Poland must comply with the Polish Civil Code and relevant provisions of Polish law. Unlike employment contracts, a B2B contract is not subject to the Polish labor law, which means that leave issues must be individually agreed upon. B2B contract must include information about the parties to the contract, duration of the contract, its subject matter, completion date and financial conditions. arrangements for any copyright, confidentiality clauses, as well as specify the situations in which the contract may be terminated and the consequences of such termination. Well-structured B2B agreements help avoid misunderstandings and ensures smooth cooperation between companies.
Companies hiring B2B contractors must keep in mind that in Poland, the transfer of intellectual property is legal only if the contract is signed manually or with an eIDAS-compliant qualified electronic signature (QES). Using DocuSign for such contracts does not transfer ownership, which can be risky for companies. In B2B contracts with employees, it is important that they be in English and Polish, which facilitates legal proceedings, as Polish courts require documents in Polish or certified translations. In addition, IT contracts must take into account data protection in accordance with the GDPR, specifying obligations related to data processing.
Implementation of B2B contracts in IT industry in Poland
Implementing B2B contracts in the IT industry is a common practice among companies in Poland, facilitating flexible business arrangements. Such contract between two companies allow for a clear definition of services and expectations, ensuring smooth cooperation. In the context of business in Poland, a B2B contract is largely related to project work, providing both parties with the benefits of flexibility and specialization. B2B employment in this sector is often preferred because of its adaptability and ability to engage experts for specific tasks. Overall, B2B contracts offer companies in Poland a strategic advantage in effectively managing resources and expertise.
Lots of IT specialists in Poland are still employed under an employment contract and want to become a B2B contractor.If you are planning to cooperate on the basis of a B2B contract, carefully read the following tips that will help you avoid many mistakes. First of all, to set up a contract effectively, it is important to clearly define the scope of the project, identify the parties to the contract, establish terms and conditions, including payments and schedules. It is also important to define intellectual property rights and introduce confidentiality and data protection clauses in accordance with GDPR. Before finalization, the contract should be reviewed by lawyers to ensure compliance with Polish employment law. If you find it difficult to manage the complexities of the Polish labor market, consider Employer of Record (EOR) services, which help outsource employment and payroll responsibilities. Becoming a B2B contractor is also possible while cooperating with a recruitment agency in Poland.
Let’s take a look at some common mistakes made when preparing a B2B relationship or conversion to B2B, which is an alternative to the traditional employment. One mistake is misclassifying B2B contractors as regular employees, which can lead to legal problems. Another mistake is overlooking communications with contractors, even if they are not regular employees under the contract of employment. It’s also important to consider cultural differences – communication style, working hours and business etiquette – when hiring international contractors to work under B2B contracts. In addition, don’t skimp on the onboarding process, as B2B contractors need an introduction to the company’s processes and culture, ensuring they get off to a quick and effective start.
Benefits of B2B contracts in the Polish IT companies
B2B contracts in IT industry in Poland offer many benefits for both companies and contractors. First and foremost, they provide flexibility in resource management, allowing companies to adapt quickly to changing project needs. With B2B contracts, companies can engage Polish software developers for a specific period of time or for specific tasks, making efficient use of experts’ knowledge and skills. In addition, these contracts often involve less administrative workload when compared to traditional employment, which can lead to cost savings. B2B also fosters partnerships between companies, which can lead to long-term cooperation and mutual business development.
B2B contracts are not only about strategic partnerships and reduced risk, they are also about the opportunities that come with access to specialized skills and knowledge in software development, new technologies, artificial intelligence or cyber security. Developers engaged under B2B contracts open roads for companies to expand their markets and allow them to stay at the forefront of innovation. The dynamics of the IT industry requires companies to have an extraordinary ability to adapt quickly. B2B contracts with developers in Poland bring with them the flexibility needed for changing project requirements, changes in technology and market fluctuations. With B2B contracts, companies can quickly engage specialists for specific projects, allowing them to respond effectively to new challenges and customer needs. Compared to employment contracts in Poland, B2B contracts offer greater flexibility and the ability to adapt resources more quickly to current needs, which is particularly important in the IT industry, where technologies and project requirements can change rapidly. Choosing B2B contracts also allows for easier innovation, as companies can benefit from the knowledge and experience of outside experts, which is crucial in the rapidly evolving IT industry.
Concluding, in the Polish IT sector B2B contracts are fundamental to ensuring effective cooperation and protecting the interests of both parties. Key changes for B2B contracts that address the specific requirements of the IT industry and regulatory compliance are essential for building beneficial business relationships. As the industry continues to evolve, engaging software developers through B2B and being employed on B2B basis requires constant monitoring of regulatory changes and adjusting contracts accordingly, which is crucial for lasting partnerships in a dynamic IT environment.
Adam Łyko, CEO
With 18 years of experience in recruiting IT professionals and helping clients optimize their recruitment budgets, we provide engaging consultancy services and valuable knowledge sharing. If you have more questions, we’re here to support you. Curious about the availability of certain coding skills in selected geography? Schedule a meeting. Together, we’ll navigate the market challenges outlined in this article and strategize your response.
