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Plan for Labour and Economic Development: protecting entrepreneurs and employees in the time of a pandemic and preparing the economy to return to growth trajectory

30.11.2020

Direct support – for companies and employees affected by COVID-19; new direction – a comprehensive support in adapting to market requirements for entrepreneurs and employees in a difficult situation; development impulse – elimination of unnecessary bureaucracy, digitisation of the business environment, pro-entrepreneurial legal regulations – these are the main assumptions of the Plan for Labour and Economic Development prepared by the ministry of economic development, labour and technology. “Our goal is to protect Polish entrepreneurs and employees in the time of the pandemic and to prepare our economy to return to growth trajectory when it is over,” emphasises Jarosław Gowin, deputy prime minister and head of the ministry.

Prime Minister Jarosław Gowin during the conference

The pandemic has changed the world as we knew it. That is why we need a new plan so that Polish employees and companies can feel safe again. Thanks to a specific and reliable plan, the conditions for doing business in our country will become predictable. Our plan is focused on labour and development. Labour, because in times of crisis, we have to first of all provide for Polish families and ensure the survival of Polish companies. And development, because the crisis and pandemic will pass one day and therefore, we have to already think about the future, about making our economy return to growth trajectory as soon as possible, says Prime Minister Jarosław Gowin.

The Plan for Labour and Economic Development contains a whole series of specific proposals in three key areas. Each of the three areas of the plan meets different needs. Some of these solutions have already been implemented, and some are at various stages of legislative or preparatory work. Details of the plan are available on the website: www.LiczaSieKonkrety.gov.pl.

“The ministry that I manage is responsible for the economy and work at the same time. This creates a unique opportunity to work out anti-crisis and pro-development solutions in broad cooperation between all actors of economic life. Solutions developed in consensus will be more effective and easier to implement. Therefore, the activities of the ministry will be conducted in dialogue – with both employers and trade unions. It is no coincidence that I so strongly emphasise the need for dialogue and a new social contract. It results from the fact that our plan is about one more fundamental issue – trust. We must strengthen citizens’ trust in the institution of the state, which is efficient and effective. The state that is consistently implementing the plan to raise the standard of living of Poles and strengthen our economy,” stresses Deputy Prime Minister Gowin.

As the deputy prime minister adds, “The tasks assigned to the Ministry of Economic Development, Labour and Technology cover a very wide area of the Polish reality. From work, through the economy, entrepreneurship, industry, international trade, technology, innovation, construction and housing, to tourism. In the current pandemic situation, this means responsibility for supporting industries that are most impacted by the introduced restrictions. We are guided here by the will to protect as many Polish companies and jobs as possible. At the same time, however, we are working on giving the Polish economy an impulse to develop when the current crisis is over. We want to use this difficult time also as an opportunity,” the head of the ministry emphasises.

He then summarises: “Our plan is a comprehensive proposition for the Polish economy, entrepreneurs and employees. However, it is open and flexible. We will gradually expand it with new solutions and initiatives, if necessary.”

Three key areas: direct support, new direction and development impulse.

Direct support

Entrepreneurs and employees affected by the pandemic can count on support from subsequent editions of the anti-crisis shield, including the PFR financial shield, or the industry shield, the legislative process of which is in the final stage. We will allocate approx. PLN 40 billion for the industry shield and the continuation of the financial shield. We also want to introduce compensation covering up to 70% of fixed costs for companies subject to the restrictions and favourable-rate investment loans guaranteed by BGK.

Companies supported by the industry shield will be able to apply for aid in the form of: exemption from social security contributions for November with the possibility of extending it for the following months; one-time additional downtime benefit in the amount of PLN 2,080; subsidies of PLN 2,000 to each workplace, including mandate contracts; subsidies of up to PLN 5,000; suspension of the fair fee in 2021, with municipalities receiving compensation.

Entrepreneurs who have not yet benefited from subsidies for the remuneration of employees and persons employed under civil law contracts may still apply for these benefits for a period of 3 months.

In addition, we extend the support from the Labour Fund in Labour Offices by another six months, thanks to which entrepreneurs will be able to obtain funds for:

  • co-financing of part of the employee remuneration costs and social security contributions,
  • co-financing of part of the costs of running a business,
  • loan to cover the running costs of a business activity,
  • loan to cover the running costs of a business activity or a statutory non-governmental organisation,
  • co-financing of some of the costs of remuneration (and contributions) of employees of non-governmental organisations,
  • co-financing of part of the costs of remuneration (and contributions) of the employees of church legal persons.

New direction

Our goal is also to help people who have lost their jobs and entrepreneurs who have problems in adapting to the market needs.

This can be obtained within:

  • “First Business – Support for Start-up” programme, which will help the unemployed to return to professional activity;
  • “New Start” programme for entrepreneurs who experienced difficulties;
  • New Opportunity Policy programme for entrepreneurs who already operate on the market, and for various reasons found themselves in trouble. Companies can thus receive financial and expert support in carrying out effective restructuring;
  • simple procedures related to setting up a company for those who would like to start their adventure with business. Creating an account on Biznes.gov.pl enables easy preparation for setting up and registering a business in 12 steps. Entrepreneur Help Centre at Biznes.gov.pl provides support 24 hours a day, 7 days a week. Biznes.gov.pl thus guarantees time savings and numerous facilitations in dealing with matters via the Internet;
  • support for novice entrepreneurs in the form of the so-called start-up exemption, i.e. 6 months without the obligation to pay social security contributions, followed by a 2-year period of paying preferential contributions, after which those who meet the criteria can take advantage of the so-called Small ZUS Plus.

Development impulse

The impulse for the development of the economy after the pandemic is to be provided by solutions such as:

  • legal shield, which will be prepared by an inter-ministerial team headed by Minister Anna Kornecka. The team will deal with removing administrative barriers, speeding up deadlines in decision-making and acting for a more friendly business environment;
  • New Industrial Policy tailored to the needs of individual sectors. It is to be a well-thought-out package of development impulses for industries that bring the greatest added value in exports. This programme is supervised by Minister Robert Tomanek;
  • digitisation of subsequent areas of the Polish administration, including construction procedures;
  • spatial development reform, preceded, however, by a sufficiently long vacatio legis, so that local governments have time to prepare for it;
  • robotisation relief, which will allow for the acceleration of automation processes in manufacturing companies;
  • support for innovative Polish companies, provided by Industrial Development Agency, National Centre for Research and Development, Polish Agency for Enterprise Development, among others;
  • new project – the Originator’s Zone, a space open to the needs of innovators, inventors, visionaries, students, researchers, enthusiasts of science and new technology;
  • supporting investments in the Polish Investment Zone – for this purpose, we are preparing an amendment to the act on PIZ;
  • government investment grants even more affordable for SMEs;
  • new PPL, which will come into force on 1 January, will improve the position of contractors and simplify the conditions for participating in tenders;
  • family foundation, which is to facilitate the succession of Polish companies, building strong Polish brands as well as the accumulation and preservation of capital in our country;
  • housing package, i.e. a number of solutions important for improving the housing situation of Poles.

“The Plan for Labour and Economic Development contains a whole series of specific proposals that will help our economy and society face the current challenges and, when the pandemic is over, return to growth. For us, development means primarily improving the quality of life of Poles and further strengthening the position of our economy in the world. We know that – in order for this to succeed – we must follow the principle: Hard facts matter,” concludes Deputy Prime Minister Jarosław Gowin.

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