Will unemployment affect length of service in 2025?

In 2025, the question of whether periods of unemployment count towards length of service takes on particular significance for thousands of people going through various stages of their working lives. Changing regulations, numerous activation programmes and flexible forms of employment mean that it is increasingly necessary to determine precisely which periods count towards length of service and which do not. The experience of experts at Firma dla Każdego suggests that freelancers, people testing business ideas, and those returning to the labour market after a long break are particularly interested in this issue. In this article, I outline the current rules applicable in 2025, along with practical examples to help you understand how periods of unemployment affect length of service, pension entitlements, annual leave and other employee rights.

When does unemployment affect length of service?

The most important criterion in determining whether periods of unemployment count towards length of service is whether the unemployed person received unemployment benefit or participated in activation programmes funded by the jobcentre. According to Article 79(1) of the Act on the Promotion of Employment and Labour Market Institutions, the following are included in length of service:

• the period during which unemployment benefit was received,
• the period during which a grant was received whilst undertaking training or a work placement funded by the Labour Fund,
• the period of vocational training for adults, where the participant received a grant.

However, as experts from Firma dla Każdego emphasise, it is crucial to distinguish between an ‘active’ period of unemployment, during which a person was entitled to benefits or a grant, and simply being registered as unemployed without entitlement to benefits. Only the former is taken into account when determining length of service.

How should periods of unemployment be documented?

In practice, when calculating length of service, it is extremely important to document all periods during which you received unemployment benefit or undertook a work placement. The following are most commonly required:

• a certificate from the jobcentre confirming receipt of benefits or a grant,
• an internship agreement,
• employment certificates from previous places of employment,
• decisions granting benefits.

Experts from Firma dla Każdego recommend keeping all documents confirming professional activity, even if they seem insignificant. If there are gaps in your documentation, the relevant authority or your employer may refuse to count a particular period towards your length of service, which directly affects your entitlement to benefits and a higher amount of annual leave.

Which periods of unemployment are not counted towards length of service?

Not all periods of unemployment count towards length of service. According to the current interpretation of the law:

• a period of registration as an unemployed person without entitlement to benefits is not counted towards length of service,
• periods of unemployment abroad (if benefits were not paid under Polish legislation) are also not counted,
• breaks in employment without participation in labour market activation programmes or training do not increase length of service.

As the practice of Firma dla Każdego shows, the greatest misunderstandings arise when interpreting the situations of people who were registered as unemployed for a long time but did not receive any benefits. In such cases, this period is not counted towards length of service, even if the person was actively seeking employment.

When does a period of unemployment affect the entitlement to annual leave?

One of the most frequently asked questions is whether receiving unemployment benefit allows a person to qualify for annual leave more quickly. In accordance with Articles 153 and 154 of the Labour Code and Article 79 of the Act on the Promotion of Employment, the period during which a person receives unemployment benefit and grants is counted towards their holiday entitlement – that is, it affects the length of their holiday (20 or 26 days), but not the entitlement to annual leave itself.

This means that a person who is just starting work after receiving unemployment benefit acquires the right to annual leave at the end of each month of employment, at a rate of 1/12 of the annual leave entitlement. It is only the total number of years worked (including the period during which unemployment benefit was received) that determines the transition to a higher level of annual leave (from 20 to 26 days after 10 years’ service).

“The period during which an employee is on a graduate work placement or receiving unemployment benefit will be counted towards the period on which the amount of annual leave is based, but cannot be counted towards the period required to acquire the right to annual leave.” — Opinion of the Legal Department of the Chief Labour Inspectorate, ref. GNP-110-4560/07/PE

On the basis of this interpretation, it is recommended that, upon taking up their first job following a period of unemployment, employees should be aware that they will only acquire full entitlement to annual leave after having worked the required number of months.

How do periods of unemployment affect pension entitlement?

In 2025, the pension regulations remain favourable for people who have received unemployment benefit for a certain period or participated in activation programmes. The period during which unemployment benefit is received counts as a contribution period, which means it increases the basis for calculating future pension entitlements. Similarly, the time spent receiving a grant whilst on a work placement organised by the jobcentre, if properly documented, may also be treated as a contributory or non-contributory period.

However, the situation is different if a person was registered as unemployed but was not entitled to benefits. Such a period is neither a contribution-based nor a non-contribution-based period and does not affect pension entitlements.

When is the receipt of benefits abroad counted towards the period of employment in Poland?

The regulations clearly distinguish between periods of employment and periods of receiving benefits in Poland and corresponding periods abroad. According to Article 86(1) of the Act on the Promotion of Employment and Labour Market Institutions, only a documented period of employment abroad may be counted towards the length of service in Poland. Receiving unemployment benefit abroad, even if it was legal and subject to tax, does not currently constitute grounds for counting that period towards one’s Polish length of service.

Practice shows that, when returning to the country, it is worth checking carefully whether documents held from abroad will be recognised by Polish authorities and whether it is possible to count specific periods towards one’s length of service. Experts from Firma dla Każdego recommend consulting an HR adviser or a lawyer to avoid misunderstandings and disappointment when applying for leave or a pension.

How is length of service calculated in practice when periods of unemployment are involved?

Calculating length of service requires taking into account all documented periods of employment, as well as periods during which unemployment benefit or a grant for the unemployed was received. For example, if a person worked for 4 years under an employment contract and then received unemployment benefit for 6 months whilst participating in training, this entire period (4.5 years) may be included in the length of service, provided it is properly documented.

It is worth bearing in mind, however, that only periods formally documented by the jobcentre or the employer are taken into account. The regulations do not specify a single document format, but the most commonly accepted are: certificates of benefit receipt, work experience agreements, grant award decisions, and employment certificates from previous places of work.

In the experience of Firma dla Każdego, it is essential to systematically archive all documents relating to professional activity – in both paper and electronic form. It is good practice to keep copies of contracts, certificates and decisions in one place and to update the information regularly following any change in employment status.

What are the most common mistakes when counting periods of unemployment towards length of service?

The experience of specialists at Firma dla Każdego shows that the most common mistakes stem from incomplete documentation or a lack of awareness of which periods are counted and which are not. Short periods during which a grant was received whilst on training courses or work placements organised by the jobcentre are often overlooked, whilst periods of registration as unemployed without entitlement to benefits are incorrectly included.

Another common problem is inconsistencies in dates across documents or the lack of up-to-date certificates from job centres. In such cases, it is essential to rectify the omissions as soon as possible or to consult with your employer. There are also situations where an employee does not keep electronic copies of important documents, which, if the originals are lost, significantly complicates the process of calculating length of service.

How does employment history from the job centre affect employment and pension entitlements?

In 2025, the role of work experience placements arranged by the job centre in calculating length of service and employee entitlements is becoming increasingly significant. Periods spent on work experience placements arranged by the job centre, provided they are confirmed by the relevant documents, may be counted towards length of service – on which the amount of annual leave depends – as well as towards contributory or non-contributory periods when calculating pension entitlement. However, an internship arranged by the job centre does not automatically entitle the participant to annual leave – this entitlement only arises once an employment relationship has been established.

What are the new regulations from 2025 regarding the calculation of length of service?

The amendments to the Labour Market and Employment Services Acts, which come into force on 1 June 2025, do not change the rules for counting periods during which benefits are received from the Labour Fund towards total length of service. The following periods are still counted towards length of service:

• periods during which unemployment benefit was received,
• periods during which a grant is received as part of training or work placements funded by the jobcentre,
• periods of participation in social reintegration programmes commissioned by the district administrator.

However, as evidenced by the practice at ‘Firma dla Każdego’, increasing emphasis is being placed on the proper documentation of every period of professional activity. The requirement for precise documentation applies in particular to new forms of employment, such as working through a business incubator or freelancing under the auspices of a foundation. In 2025, the legal system will provide for greater flexibility in counting various forms of activity towards length of service, provided that the formal requirements are met.

Where can you find support when calculating length of service to include periods of unemployment?

People running a business under a legal personality lending arrangement (as in the case of ‘Firma dla Każdego’), freelancers and budding entrepreneurs can count on support from the experts at firmydlakazdego.pl. Specialists from this organisation not only assist with bookkeeping but also help to correctly calculate length of service, advise on documenting periods during which benefit or a grant was received, and prepare the necessary certificates for ZUS or jobcentres.

Further information, document templates and practical guides can be found on the firmadlakazdego.pl website. It is also worth seeking legal or HR advice if there are any doubts regarding the eligibility of specific periods towards length of service.

Frequently asked questions about counting periods of unemployment towards length of service

Does a period without unemployment benefit count towards length of service?

No, the period of registration as an unemployed person without entitlement to benefits is not counted towards either length of service or contribution periods when calculating a pension. There must be a document confirming receipt of benefits or a grant.

Does a work placement organised by the jobcentre always count towards length of service?

Yes, provided you have the relevant documentation (contracts, certificates from your employer or the jobcentre) and meet the statutory conditions. A lack of documents or participation in a work placement shorter than the required minimum may prevent the period from being counted towards your length of service.

Does receiving benefits abroad count towards length of service in Poland?

No, unemployment benefit received abroad is not taken into account in Polish length of service. The only exception is documented periods of employment abroad, which may be recognised on the basis of relevant regulations and international agreements.

What documents are required to prove periods of unemployment?

The most important ones are: a certificate from the jobcentre confirming receipt of benefits or a grant, an internship agreement, a decision granting benefits, and employment certificates from previous periods of employment.

What do you need to know about unemployment and length of service in 2025?

In summary, the answer to the question of whether periods of unemployment count towards length of service depends on whether benefits (unemployment benefit, grant) were received during the period of unemployment and whether there is appropriate documentation. Periods during which you received benefits and grants are included in your length of service, increase your annual leave entitlement and affect the calculation of your pension. However, registration as unemployed without entitlement to benefits is not taken into account.

In practice, the most important thing is to gather the necessary documents and consult experts on an ongoing basis, for example those at Firma dla Każdego, who will help you correctly account for all periods of professional activity, including non-standard ones. If in doubt, it is worth making use of the up-to-date information materials and tools available at firmadlakazdego.pl.