Working “off the books” in Poland can lead to the loss of sickness benefits, unemployment status, and even require repayment of funds to ZUS.
“Gray Market” Work and Benefit Loss
Illegal employment carries serious consequences for both employers and employees. The risk to employees isn’t always limited to tax or contribution issues; it can also lead to losing the right to sickness benefits, problems with rehabilitation allowances, loss of unemployment status, or having to repay already received funds. However, not every form of undeclared work automatically results in losing everything.
What Does “Working on the Black” Actually Mean?
“Working on the black” encompasses several situations: failure to register employment for insurance, concealing part of wages “under the table,” illegal employment without a contract, or undertaking paid work without disclosing it to the benefit-paying agency. ZUS describes “working on the black” and “under the table” payments as part of the gray market, but the impact on benefits depends on the specific legal situation, not just common labeling.
Sickness Benefit: The Highest Risk
One of the most serious consequences concerns sickness benefits. Regulations state that an insured person loses their right to the benefit for the entire period of sick leave if they perform paid work or misuse the leave. ZUS has confirmed that the principle of losing the right to the benefit for the entire period remains valid.
In practice, this means a problem can arise when someone on sick leave is found to be working.
Rehabilitation Allowance Can Also Be Lost
Similar logic applies to rehabilitation allowance. The ZUS Z-10 form explicitly states that sickness benefit and rehabilitation allowance are not payable if the person performs paid work or engages in activity inconsistent with the purpose of the leave. ZUS also notes that benefits received under such circumstances are subject to repayment.
Unemployment Status Can Be Lost Quickly
An unemployed person has obligations to the labor office, and taking up employment or other paid work can lead to losing unemployment status. Public labor market services indicate that unemployment status can be lost, among other reasons, due to taking up employment or other paid work.
This is particularly risky when someone is found to be working while claiming unemployment benefits.
Not All Activity Has the Same Consequences
From the perspective of benefits and unemployment status, it’s always necessary to verify whether a given activity qualifies as employment or other paid work under the relevant regulations.
Must Benefits Always Be Repaid?
Not always, but the risk of repayment is real in many cases. If “working on the black” involved performing paid work while receiving a sickness benefit or receiving benefits despite being ineligible, the agency may challenge the payment and demand repayment. ZUS materials on benefits and improperly received payments clearly indicate this risk.
What About Illegally Employed Workers?
Changes related to the Polish Deal have strengthened the link between the tax and contribution consequences of illegal employment and the employer’s responsibility. However, this does not mean that the employee receiving benefits is protected from the consequences in the area of sickness benefits, rehabilitation allowance, or unemployment status. If illegal work affects the right to a specific benefit, its loss or repayment may still occur.
When is “You’ll Lose Everything” an Exaggeration?
Working “on the black” does not always mean losing all benefits. It’s important to state clearly that the consequences depend on the type of benefit and whether the work performed affects the conditions for receiving it.
The most risky forms of illegal activity are those that directly conflict with the conditions for receiving a given benefit.
What Should You Do to Avoid Worsening Your Situation?
If someone is receiving a benefit and simultaneously working, even informally, they should carefully assess their situation. The safest course of action is to report the income and ensure proper contributions are made.
The actual performance of work, not the nature of the relationship between the parties, most often determines the risk of losing benefits.
Summary
Illegal employment can indeed lead to serious consequences for someone receiving benefits, but not always in the same way. The greatest risk applies to sickness benefits, rehabilitation allowance, and unemployment status, as regulations link performing paid work to losing entitlements or the obligation to repay funds. Before assuming that “working on the black” carries no risk, one should verify whether such activity does not invalidate the right to a benefit they are using.
FAQ – Frequently Asked Questions
1. Does working “on the black” always mean losing all benefits? No. The consequences depend on the type of benefit and whether the work performed affects the conditions for receiving it.
2. Can you lose a sickness benefit for the entire period of sick leave? Yes. The law provides for the loss of the right to a sickness benefit for the entire period of sick leave if paid work is performed during that time or the leave is misused.
3. Can an unemployed person lose their status after taking illegal work? Yes. Taking up employment or other paid work can lead to losing unemployment status.
4. Can a rehabilitation allowance also be subject to repayment? Yes, if it was received while performing paid work or engaging in activity inconsistent with the purpose of the leave.
5. Does the lack of a contract protect against consequences for ZUS or the labor office? No. The agency is concerned with the actual performance of work and its impact on the right to a benefit.
