Contract of mandate
Contract of mandate – key information
A contract of mandate is a flexible form of civil law cooperation, regulated by the Civil Code in Articles 734–751. It is concluded between the principal and the contractor and is based on “due diligence”.
This means that what matters is the proper performance of the assigned activities, rather than achieving a specific result, as in the case of a contract for specific work.
The subject of the contract is the performance of a specific legal act, and the parties may agree that the mandate will be paid or unpaid.
Concluding a contract of mandate does not create an employment relationship, which means that the provisions of the Labour Code do not apply to it, including those concerning holiday entitlement, protection against termination or working time standards.
Key features of a contract of mandate
- civil law form of cooperation concluded between the principal and the contractor
- no employment relationship and no protection resulting from the Labour Code
- settlement based on the diligent performance of activities, not on a specific result
- possibility of working flexible hours and remotely, according to arrangements between the parties
- possibility of agreeing on a paid or unpaid form of mandate
ZUS contributions and social security coverage of a contract of mandate
As a rule, a contract of mandate constitutes a basis for social security and health insurance.
The contractor is subject to mandatory pension, disability, accident and health insurance contributions, while sickness insurance is voluntary.
Since 2017, contracts of mandate have been subject to contributions until the total contribution assessment base from all sources reaches at least PLN 2,000 gross per month, with exceptions provided, for example, for students under the age of 26 or people who also have an employment contract.
A detailed calculation of net remuneration and the total cost of the mandate for both the contractor and the principal is facilitated by a salary calculator for contracts of mandate.
