Cash equivalent for unused annual leave after the 2026 changes in Poland – deadlines, exceptions and practical doubts

As a result of amendments to the Polish Labour Code, from 27 January 2026 the cash equivalent for unused annual leave should be paid on the employer’s regular payroll date.

This change forms part of a broader labour law reform in Poland, which in 2026 also includes, among others, rules on determining seniority, pay transparency, and new employer obligations. More on this topic is discussed in the article: Labour law in Poland 2026 – Changes that will affect your firm’s HR and payroll accounting.

Is there an exception?

If the employer’s payroll date falls before the date of termination or expiry of the employment relationship, the cash equivalent should be paid within 10 days from the date of termination or expiry of employment.

If the payment date falls on a non-working day, it should be made on the preceding working day.

Example

If the employment relationship ends on 31 March 2026 and the payroll date falls on the 5th day of the following month, the equivalent should be paid on 3 April 2026, because 5 April 2026 falls on a Sunday.

What if the employment contract ends by the middle of the month?

Termination of an employment contract in the middle of the month often raises doubts, especially regarding the payment date of the leave equivalent.

If the employment contract is terminated on 15 March and the company’s payroll date is 10 April, the equivalent should be paid on that date, as the general rule is to pay it on the nearest payroll date following termination. In our view, the legislator’s intention was to link the payment of the equivalent to the nearest standard payroll date applicable at the employer. If the payroll date falls on a non-working day, the payment should be made on the preceding working day.

Can the equivalent be paid earlier?

There are no obstacles preventing the employer from paying the equivalent earlier. The new provision sets a maximum permissible deadline (i.e. up to 10 days after termination if the payroll date falls earlier), but does not exclude earlier payment.

In practice, the equivalent is very often paid on the last day of employment or shortly thereafter. If the employee becomes entitled to the equivalent on the date of termination, there is nothing preventing the employer from paying it, for example, on Tuesday, 17 March.

Source: The article was created in collaboration with our cooperation partner – sdzlegal Schindhelm Law Office