On January 15, 2021, the Sejm received a government bill on amendments to the Civil Procedure Code and certain other laws (print No. 899, hereinafter: “amendments to the Civil Procedure Code”). On January 20, 2021, the draft was referred to the first reading at the Diet session.

Changes to the Code of Civil Procedure

The amendment to the Code of Civil Procedure will introduce into Part Three, Title II, Section VI of the Code a new Chapter 6a, entitled “Sale of Real Estate by Electronic Auction,” containing provisions from Art. ⁹⁸⁶¹ to ⁹⁸⁶¹¹ of the Code of Civil Procedure. It is the intention of the drafters that the provisions on electronic bidding will take effect three months after the date of the law’s promulgation.

In addition, Art. ⁸⁷⁹⁶ § 2 of the Code of Civil Procedure, limiting the bailiff’s discretion in choosing the auction date. Once the amendments to the Civil Procedure Code take effect, the start and end dates for tenders will be between 9 a.m. and 2 p.m. on business days. The duration of the auction will be seven days, while in the case of perishable movables, livestock as to which the debtor has refused custody, or movables whose storage causes excessive costs, the duration of the auction may be reduced to two days.

In the public notice of the auction, the bailiff will be required to indicate the time when, during the two weeks before the auction, the public will be allowed to view the property and review the description and appraisal report at the court. Such a solution deprives those interested in participating in the bidding process of the opportunity to review the entire file of the enforcement proceedings, limiting the documents made available only to the minutes of the description and appraisal of the property (Article 953 § 1, added item 5 of the Code of Civil Procedure).

Sale of real estate by electronic auction

Once the amendments to the Code of Civil Procedure take effect, the provisions of Chapters 4-7 of Division VI (“Real Estate Enforcement”) of Title II of Part III of the Code of Civil Procedure, i.e., the general provisions for conducting real estate enforcement, and the new Chapter 6a will apply to the sale of real estate by electronic auction.

The course of an electronic auction shall not be recorded by means of an audio and video recording device (added Art. ⁹⁸⁶¹ § 2 k.p.c.).

The electronic auction is carried out at the request of the creditor, which can also be made when a request for a second or renewed auction is filed. If several creditors are executing a real estate execution, a request from one of them will suffice to conduct an electronic auction (added Art. ⁹⁸⁶² k.p.c.).

Within a week of receiving the request from the creditor, the bailiff shall notify the debtor of the receipt of the request and instruct him to indicate the order in which the individual properties are to be tendered. If the debtor does not exercise the right to indicate the order of the tender within a week of service of the notice, the bailiff will determine the order at his discretion. Tenders for different properties or parts thereof should not be held simultaneously (added Article. ⁹⁸⁶³ § 1-3 of the Code of Civil Procedure).

The auction may not begin until two weeks after the expiration of the deadline for the debtor to indicate the order in which the auction will be held for each property (added Art. ⁹⁸⁶³ § 4 k.p.c.).

The sale of real estate by electronic auction is conducted through a teleinformatics system. The condition for participation in the tender is the creation of an individual account in the above-mentioned. system (added Art. ⁹⁸⁶⁴ § 1-3 of the Code of Civil Procedure). A record of the description and assessment of the property is made available in the system.

The notice of the sale should be posted on the website of the National Council of Bailiffs two weeks before the sale (added Art. ⁹⁸⁶⁴ § 4 k.p.c.). In the notice, the bailiff lists:

the real estate to be sold, indicating its location and economic use, together with the number of the land register and the place where it is kept, or with the designation of the collection of documents and the court where the collection is kept,
information about the fact that the tender is held by electronic auction and the time of the beginning and end of the tender,
Information about the obligation to pay the guarantee and its amount,
the time when, during the two weeks before the auction, the public will be allowed to view the property,
The sum of the estimate and the asking price,
a note that the rights of third parties will not be an obstacle to the auction and the assimilation of property in favor of the purchaser without reservation, if such persons do not, prior to the commencement of the tender, submit evidence that they have brought an action to exempt the property or items seized with it from execution and have obtained a judgment stopping execution in this regard,
clarification that usufruct, easements and annuity rights, if they are not disclosed in the land registry or by filing a document in the collection of documents and are not notified no later than three days before the start of the auction, will not be taken into account in the further course of the execution and will expire when the order on the adjudication of ownership becomes final.

The guarantee shall be deposited in a bank account no later than two working days before the start of the tender. The date of deposit of the guarantee shall be the date on which the bailiff’s bank account is credited. Along with the guarantee, the auctioneer is required to provide in the ICT system the data necessary for the issuance of the decision on the przyb przybiæ, in particular the PESEL number, identity card number and a statement whether he is married and, if so, whether he intends to purchase the property for joint or personal property, as well as to indicate whether he is bidding on his own behalf or as a proxy for another person (added Art. ⁹⁸⁶⁵ k.p.c.).

The bailiff shall set the tender in such a way that both the start and end dates of the tender fall between 9 a.m. and 2 p.m. on business days. The duration of the tender is seven days (added Art. ⁹⁸⁶⁷ § 2 k.p.c.).

Acquisition prices are offered by auctioneers via a teleinformation system. The auction is won by the bidder whose bid was the highest at the end of the auction.

If the bidder is denied admission, the bidder may file a complaint within 3 days from the date of denial. If an auctioneer intends to challenge the bidding process, he may do so within 3 days of the end of the bidding process. Bidders and non-admitted bidders shall only file a complaint through the ICT system. Other people can file a complaint through this system if they have an account with it (added Art. ⁹⁸⁶⁸ k.p.c.).

Immediately after the closing of the tender, but no later than within a week, the bailiff shall send to the court the report of the tender, all pending complaints and the documents necessary for the awarding of the award (added Art. ⁹⁸⁶⁹ k.p.c.).

Within a week of receipt of the record from the bailiff, the court or registrar shall issue a decision as to the award in a closed session. The successful bidder shall be served with the decision to nail (added Art. ⁹⁸⁶¹⁰ k.p.c.).

Change in Crisis Shield

The amendment to the Civil Procedure Code, in addition to the amendments to the title law, also introduced changes to the Law on Special Arrangements for Preventing, Countering and Combating COVID-19, Other Infectious Diseases and Crisis Situations Caused by Them (hereinafter: the “Crisis Shield”).

In accordance with the project proponent’s intention, the changes described below will take effect on the day after the date of announcement.

Remote hearings

In particular, it should be noted that the wording of Art. ^15zzs1 of the crisis shield on how to hold court hearings during the epidemic state. After the amendment takes effect, the rule will be that a hearing or public hearing will be conducted rem otely with direct video and audio transmission. Only exceptionally will it be possible to refrain from holding a hearing in such a manner, if the hearing of the case at a trial or public hearing is necessary, and holding the hearing in the court building will not cause undue health risks to those attending. In addition, the chairman may order a closed session when it is not possible to conduct a hearing or public hearing remotely with simultaneous direct video and audio transmission.

Responsibilities of professional attorneys

According to the added Art. ^15zzs9 of the crisis shield, during the period of the epidemic emergency and epidemic emergency, and within one year of the cancellation of the last of them in cases heard under the provisions of the Code of Civil Procedure, the first ple ading filed by an attorney or legal counsel should include a business e-mail address and telephone number.

In the absence of the possibility of using the ICT system, digital representations of pleadings, notices, summonses and judgments the court serves the advocate, legal adviser, a patent agent or the General Prosecutor’s Office of the Republic of Poland to the designated business e-mail address. Digital mapping of pleadings, notices, summons and judgments shall be deemed to have been delivered on the next business day after the court enters them into the electronic communication medium in such a way that the addressee could get acquainted with its content. Service of a letter in the above manner produces the procedural effects specified in the Code of Civil Procedure appropriate for service of a copy of a pleading, notice, summons or copy of a judgment.

Law on compensation for property damage resulting from COVID-19 restrictions

On February 22, 2021, the Parliament received a Senate bill on compensation for property damage resulting from restrictions, orders or bans on business activities imposed in connection with the declaration of an epidemic emergency or an epidemic state caused by SARSCoV-2 virus infections (hereinafter: the “compensation bill”). The following will discuss the most relevant regulations that may be introduced if the aforementioned is enacted. Law.

According to the drafters’ intention, the law would enter into force seven days after the date of promulgation.

The law sets forth the grounds, rules and procedures for compensating for property damage resulting from the imposition of restrictions, orders or prohibitions on business activities in connection with the declaration of an epidemic emergency or epidemic state caused by SARS-CoV-2 virus infections (Article 1 of the Compensation Law).

Claim for compensation

An entrepreneur who has suffered property damage as a result of the introduction of restrictions, orders or prohibitions on business activities in connection with the declaration of a state of epidemic emergency or a state of epidemic in the territory of Poland may file a claim for compensation for the damage suffered from the date of introduction of such restrictions, orders or prohibitions.

Compensation is payable by the Treasury in the amount of 70% of the property damage suffered, less the equivalent of the non-refundable aid provided to the entrepreneur under special regulations (Article 3(1) of the Compensation Law).

Entrepreneur’s request for compensation

To obtain compensation, the entrepreneur should submit a written application to the provincial governor with jurisdiction over the place where the damage occurred. The application should include (Article 4, paragraph 2 of the Compensation Law):

the designation of the authority to which it is addressed, and the case to which it relates;
entrepreneur’s company;
tax identification number (TIN);
mailing address, in case it is different from the address of the registered office or the address of residence of the entrepreneur;
An estimate of the amount of property damage suffered, less the equivalent of the non-refundable assistance provided to the entrepreneur on the basis of the regulations adopted in connection with the spread of the SARS-CoV-2 virus, and the time, place and circumstances of its occurrence;
Indication of restrictions, orders or prohibitions from which the property damage resulted;
signatures of persons authorized to represent the entrepreneur.

The governor shall consider the application within 3 months from the date of submission of the application by a decision to grant or deny compensation. The decision is final when issued (Article 5 of the Compensation Law).

Compensation shall be paid within 30 days from the date of delivery of the decision granting compensation (Article 5(5) of the Compensation Law).

Action for damages

In the case of a refusal decision or the award of compensation in an amount lower than 70% of the amount of property damage estimated in the application, reduced by the equivalent of the non-refundable aid provided to the entrepreneur, the entrepreneur, within 30 days of the delivery of the decision, may file an action in a common court (Article 6 of the Compensation Law).

Filing a lawsuit does not suspend the implementation of the governor’s decision.

The State Treasury is represented by the governor in the case before the common court.

Statute of limitations for a claim for damages

The claim for compensation is time-barred one year from the date the entrepreneur learned of the damage. The running of the statute of limitations begins no earlier than the effective date of the law (Article 7 of the Compensation Law).

In any case, however, the claim is time-barred three years from the date of cancellation of the epidemic emergency or epidemic state, whichever state was last in effect.

The claim for compensation passes to the entrepreneur’s successors in title.

Request for compensation vs. other postures of the claim

The filing of a claim for compensation does not exclude the right to bring an action for property damage arising from the imposition of restrictions, orders or prohibitions on business activities in connection with the declaration of an epidemic emergency or epidemic state caused by SARS-CoV-2 virus infections under the provisions of Article. 417, Art. 4171 or Art. 4172 of the Civil^Code, however, obtaining compensation as a result of filing an application excludes the right to compensation based on the aforementioned. provisions of the Civil Code (Article 9, paragraphs 1 and 2 of the Compensation Law).

Obtaining compensation on the basis of the above. provisions of the Civil Code exclude the right to compensation based on an application to the governor (Article 9(3) of the Compensation Law).

Waiver of lawsuit fee

The Indemnity Law amended the Law of July 28, 2005 on Court Costs in Civil Cases to establish an exemption from payment of the fee for an indemnification suit filed under the Indemnity Law (Article 10 of the Indemnity Law).

Law on Amendments to the Law on Employee Equity Plans and the Crisis Shield

On February 23, 2021, the Parliament received a Senate bill on amending the Law on Employee Equity Plans and the Law on Special Solutions for Preventing, Countering and Combating COVID19, Other Infectious Diseases and Crisis Situations Caused by Them (hereinafter: the “Law on Amending PPKs and the Crisis Shield”).

Changes to the deadlines for concluding agreements on the operation and management of PPKs

Law on PPK amendment and crisis shield extends for hiring entities less than 20 people term conclusion of a management contract Employee Capital Plans (hereinafter referred to as PPK) to. December 31, 2021, while the term contract about running PPK in the name and on behalf of the person employed on the date of the agreement – to January 10, 2022, unless the person submits a declaration of resignation from participation in the PPK before the deadline (Article 1, point 1 of the PPK Amendment and Shield Law).

For entities employing at least 20 people and for entities employing At least 50 people, but less than 250 people, the law stipulates the deadline for concluding the PPK management agreement to December 31, 2021, while the agreement on the operation of PPK – to January 10, 2022 (Article 1, point 2 of the Law on the Amendment of the PPK and the Anti-Crisis Shield).

Changes to the crisis shield

The draft law on amending the PPK and the crisis shield also provides for an amendment to the Law on Special Arrangements for Preventing, Countering and Combating COVID-19, Other Communicable Diseases and Crises Caused by Them (hereinafter: the crisis shield). The most significant changes from an entrepreneur’s perspective will be outlined below.

Clarify the definition of a micro-entrepreneur

The drafters are calling for a new article to be added to the crisis shield. 2b, according to which whenever the regulations on providing support to entrepreneurs, including financial support, to counteract COVID-19 refer to a micro-entrepreneur to whom support is provided, it is understood to include an entrepreneur who does not employ workers in the context of an employment relationship. The possibility of denying support to an entrepreneur solely on the basis of the fact that the entrepreneur does not employ workers within the framework of an employment relationship is excluded, unless the support involves employment only within the framework of such a relationship.

Sickness benefit

Currently, according to Art. 4g of the crisis shield, during the period of declaration of an epidemic emergency or an epidemic state to an insured person employed in a treatment facility, during the period of mandatory quarantine or home isolation, resulting from being in contact with persons ill due to COVID-19 in connection with the performance of duties resulting from employment at the medical entity, and during the period of inability to work due to COVID-19 arising in connection with the performance of duties resulting from employment at the medical entity, shall be entitled to sickness benefit, the monthly amount of which shall be 100% of the benefit base calculated in accordance with the provisions of the Act on Monetary Benefits from Social Insurance in Case of Illness and Maternity. The draft law on the amendment of the PPK and the crisis shield provides for the repeal of Art. 4g of the crisis shield and the addition of Art. 4fa, which is a more general regulation of the matter indicated. According to the indicated provision, an employee who is incapacitated due to COVID-19 or unable to perform work as a result of being subjected to quarantine or home isolation due to COVID-19 is entitled to a monthly sickness benefit of 100% of the benefit base, starting from the first day of incapacity or inability to perform work. At the same time, the indicated provision excludes the employee’s entitlement under Art. 92 § 1 of the Labor Code the right to remuneration for the above. period.

The proposal in question should be evaluated positively, because – quoting from the justification of the above-mentioned the bill – “took into account that during a pandemic, the burden of paying sickness benefits should, from the first day of inability to work or the first day of inability to work, fall on the Social Security Administration, and not on employers who, during a crisis caused by an epidemic, have serious problems maintaining financial liquidity, business continuity and employment status.”

Parking benefit for partners of certain sole proprietorships

Currently, according to Art. 15zq of the anti-crisis shield, a person engaged in non-agricultural economic activity is entitled to a parking benefit. The draftsman proposes adding a new paragraph to the indicated provision. 1a, according to which a natural person who is a partner in a sole proprietorship, limited liability company, general partnership, limited partnership or partnership will also be considered a person conducting a non-agricultural business activity .

In the case of such a person, the parking benefit will be due when, following the occurrence of COVID-19, there has been an outage in the operation of the company of which the person is a partner.

EU regulation on the renewal of certain certificates, certificates, licenses and permits in connection with COVID-19

On February 16, 2021, Regulation (EU) No. 2021/267 of the European Parliament and of the Council (EU) was signed in Brussels, establishing specific temporary measures in view of the persistence of the COVID-19 crisis concerning the renewal or extension of certain certificates, certificates, licenses and permits, the postponement of certain periodic inspections and periodic training in certain areas of transport legislation, and the extension of certain periods referred to in Regulation (EU) 2020/698 (hereinafter: “Regulation 2021/267”).

Member states may decide not to apply the extended deadlines. Member states should inform the Commission of the decision in this regard by March 3, 2021. If a Member State decides not to apply the extended deadlines, it must not impede cross-border activities of economic operators or individuals who have benefited from certain derogations applied in another Member State. The Republic of Poland has decided not to apply Regulation 2021/267 regarding the extension of the deadlines for regular tachograph inspections, periodic roadworthiness testing of motor vehicles and trailers, and the validity of roadworthiness certificates.

Certificate of professional qualification – dates for periodic training of drivers

At the outset, it should be recalled that those working as professional drivers performing road transportation for categories C1, C, D1, D, C1E, CE, D1E, DE of the driver’s license, should have a certificate of professional qualification. Based on Art. 2 of Regulation 2021/267, the deadlines for completion of periodic training by the holder of a certificate of professional qualification (CPC), which would otherwise expire between September 1, 2020 and June 30, 2021, shall be deemed to have been extended by a period of 10 months in each case. Accordingly, in the case of extension of periodic training dates, CPCs remain valid.

The terms of periodic training of CPC holders previously extended based on Regulation 2020/698, which would expire between September 1, 2020 and June 30, 2021, shall be considered extended by the period of Six months or by July 1, 2021, whichever is later.

The validity of the marking with the harmonized EU code “95” on the driver’s license or driver qualification card has been extended for a period of 10 months. If the validity of the above. labeling was previously extended based on Regulation 2020/698, and as a result of this extension would expire between September 1, 2020 and June 30, 2021, shall be considered extended for the period of Six months or by July 1, 2021, whichever is later. Analogous extensions are granted for driver qualification cards.

Renewal of driving licenses

Based on Art. 3 of Regulation 2021/267, the validity of driver’s licenses, which would otherwise expire between September 1, 2020 and June 30, 2021, shall be extended by 10 months. The validity of driver’s licenses that were previously extended based on Regulation 2020/698 shall be considered extended for a period of six months or until July 1, 2021, whichever is later.

Driver card renewal application

According to Art. 4 paragraph. 2 of Regulation 2021/267, where a driver applies for renewal of a driver card between September 1, 2020 and June 30, 2021, the competent authorities of the Member State shall issue a new driver card no later than two months after receiving the application. Until the driver receives a new driver card from the card-issuing authorities, the driver shall proceed as in the case of a damaged, malfunctioning, lost or stolen driver card (i.e., in accordance with Article 35 of EU Regulation 165/2014), provided that the driver can prove that he or she has applied for an extension of the driver card.

When a driver applies for a replacement driver card between September 1, 2020 and June 30, 2021, the competent authorities of the Member State shall issue a replacement card no later than two months after receiving the application. The driver may then continue driving until he receives a new driver card from the card-issuing authorities, provided that he can prove that the driver card has been returned to the competent authority due to its damage or malfunction and that he has requested a replacement card.

Renewal of Community license and driver’s certificate

Based on Art. 7 of Regulation 2021/267 is extended by 10 months for the validity of the Community license for international transportation and the driver’s certificate (mandatory if the driver is a third-country national) – if their validity would have expired between September 1, 2020 and June 30, 2021.

Based on Art. 8 of Ordinance 2021/267 shall be extended by 10 months for the validity of a Community license for the operation of international bus and coach passenger transportation, if its validity would have expired between September 1, 2020 and June 30, 2021.

Renewal of uniform safety certificates in rail transport

A single safety certificate is required to be held by railroad companies that wish to gain access to railroad infrastructure. Based on Art. 9 of Regulation 2021/267, the renewal dates of uniform security certificates and the validity of security authorizations (as referred to in EU Directive 2016/798) that would have expired between September 1, 2020 and June 30, 2021 shall be deemed to have been extended for a period of 10 months. Similarly, according to Art. 10 of Ordinance 2021/267, the safety certificates referred to in Directive 2004/49/EC are extended.

Driver’s license renewal

Based on Art. 11 of Ordinance 2021/267, the validity of a driver’ s periodic inspection and a license certifying that the driver meets the minimum requirements in terms of health conditions, basic education and general professional skills shall be considered extended by 10 months if they would have expired between September 1, 2020 and June 30, 2021.

Extension of deadlines in water transport

According to Art. 14 of Regulation 2021/267, extends by 10 months the deadlines for boat captains to undergo medical examinations, which would expire between September 1, 2020 and June 30, 2021.

Based on Art. 15 of Regulation 2021/267, the validity of EU certificates of seaworthiness, which would expire between September 1, 2020 and June 30, 2021, shall be considered extended for a period of 10 months. All documents within the scope of Directive (EU) 2016/1629, which establishes technical requirements for inland waterway vessels, are also extended by this period.

Based on Art. 16 of Ordinance 2021/267, the deadlines for periodic reviews of port facility security assessments that would have expired between September 1, 2020 and June 30, 2021 are extended to September 30, 2021.

Bill to increase the tax-free amount

On March 11, 2021, a parliamentary bill amending the Law on Personal Income Tax and Some Other Laws was submitted to the Parliament (no print number has been assigned yet).

Currently, according to Art. 27 para. 1a of the Personal Income Tax Law (hereinafter: the PIT Law), the tax-reducing amount deducted in the annual tax calculation is:

360.00 PLN – for a tax assessment basis not exceeding the amount of 8,000.00 PLN;
360.00 PLN reduced by the amount calculated according to the formula: PLN 834.88 × (tax assessment basis – PLN 8,000.00) ÷ PLN 5,000.00 – for a tax assessment basis higher than PLN 8,000.00 and not exceeding the amount of PLN 13,000.00;
PLN 525.12 – for a tax assessment basis higher than PLN 13,000.00 and not exceeding the amount of PLN 85,528.00;
PLN 525.12 less the amount calculated according to the formula: PLN 525.12 × (tax assessment basis – PLN 85,528.00) ÷ PLN 41,472.00 – for a tax assessment basis higher than PLN 85,528.00 and not exceeding the amount of PLN 127,000.00.

The project proponent proposes to unify the tax-reducing amount and establish it for all of the above. the basis for calculating the tax at PLN 5,100.00. At this point, it is worth clarifying the intention of the project proponent, revealed in the project’s explanatory memorandum, according to which “The goal of the drafters is to increase the tax-free amount. It is proposed to introduce a tax-free amount of PLN 30,000 for all taxpayers. The introduction of a higher tax-free amount will be particularly important for those earning up to PLN 2,500 a month, as these individuals will be fully exempt from personal income tax. In addition, it should be noted that pension benefits that do not exceed the amount of PLN 2,500 per month will also be exempted from the fiscal burden. Increasing the free amount to 30,000. gives a tax-reducing amount of 5.1 thousand. PLN per year, or PLN 425 per month.“.

BulletinMarch 2021

Amendments to the Code of Civil Procedure and other laws