President Karol Nawrocki’s decision to veto the amendment to the special aid law for Ukrainian citizens has sparked heated debate about the stability of Poland’s labor market and the future of hundreds of thousands of workers from across the eastern border. At stake are social benefits, access to healthcare, and the economic consequences of regulatory uncertainty — including the potential growth of the shadow economy and a slowdown in Poland’s GDP.
Presidential Veto – What It Covers and Why
The amendment, vetoed by President Nawrocki, was designed to extend the right of Ukrainian citizens to stay, work, and receive social benefits in Poland until March 4, 2026. The president objected to the lack of provisions tying the 800+ child benefit to employment and tax contributions in Poland, as well as to preferential access to public healthcare.
It is worth noting, however, that Ukrainians with temporary protection status (“UKR”) remain legally secured by an EU Council decision that extends this protection until March 4, 2027. This guarantees the right to stay and work. The uncertainty primarily affects those relying on extended visas, residence permits, or visa-free travel.
The president also proposed additional measures, including conditioning the 800+ benefit on employment in Poland, restricting healthcare access for the unemployed, and extending the residency requirement for citizenship from three to ten years. The draft further introduces criminal penalties of up to five years in prison for illegal border crossings and up to three years for promoting Banderite ideology or OUN-UPA activities.
Legal Consequences – A Complicated Picture for Ukrainian Workers
If the amendment is not passed, the legal basis for Ukrainians with UKR status will fall under the 2013 Foreigners Act (Article 106) in conjunction with EU law. This framework secures access to the labor market without the need for a work permit or registration with labor offices, meaning that in some respects the situation for this group could remain stable, even more flexible.
By contrast, Ukrainians relying on extended national visas or residence permits risk losing their legal status if the provisions of the special law are not extended. Experts recommend filing applications for temporary residence permits before September 30, 2025. Meanwhile, employment notifications under the current law remain valid, ensuring continuity for those already hired.
“It is crucial that individuals relying solely on extended national documents react early and secure their status by applying for temporary residence. Otherwise, they risk being considered illegal residents, even if they continue to work and pay taxes,” stresses Tetiana Hrynchyshyn, a specialist in foreigner legalization.
How Will the Market React?
The suspension of the amendment carries significant consequences for the labor market. According to Poland’s Social Insurance Institution (ZUS), nearly 825,000 Ukrainians were covered by social insurance in July 2025 — about 5% of all insured persons and more than two-thirds of all legally employed foreigners in the country.
Research from the Polish Economic Institute (PIE) in May 2025 revealed that one in three Polish companies employs Ukrainians, and their potential departure is seen as a real threat to business continuity.
“The scale of Ukrainians’ presence in the labor market is unprecedented. They not only alleviate staff shortages but are essential to the daily operations of many sectors. Regulatory uncertainty risks reducing labor supply, fueling the shadow economy, and disrupting integration processes,” says Natalia Myskova, CEO of Smart Solutions HR.
Employers in logistics, agriculture, and manufacturing are particularly exposed. Even the prospect of regulatory instability after September 30, 2025, raises employment risks, slows new hiring, and increases the cost of business planning.
In the long run, the stakes are even higher: loss of a portion of the labor force could raise recruitment costs, slow productivity, and hamper growth in labor-dependent industries. According to a Deloitte study for UNHCR, Ukrainian refugees contributed 2.7% to Poland’s GDP in 2024 — underlining their critical role in the economy.
Uncertainty and the Shadow Economy
For Ukrainian workers, unclear rules complicate basic life decisions. If uncertainty persists, informal employment may expand as companies prioritize continuity and workers seek stable income.
“When regulations are unclear, temporary solutions outside the formal system become inevitable. Employers want to maintain operations, and workers need jobs. This is not about bypassing the law but about surviving in the absence of workable rules. Unfortunately, that path leads directly to the growth of the shadow economy,” concludes Myskova.
What’s Next for the Special Aid Act?
The president’s veto has triggered political and expert debates about the labor market. Karol Nawrocki announced plans to submit his own amendment, which he argues will be more comprehensive and better aligned with economic and geopolitical realities. Meanwhile, the government pledged to prepare a separate law to regulate the status of Ukrainians in Poland.
The situation remains fluid and underscores the urgent need for legal solutions that balance the interests of workers, employers, and the state — ensuring systemic stability for years to come.
Sources:
- Polish Economic Institute, Weekly Economic Report, 15.05.2025 – Smart Solutions HR analysis
- Deloitte for UNHCR, The Impact of Ukrainian Refugees on Poland’s Economy – Smart Solutions HR analysis
- ZUS data on foreign workers insured in Poland, January–July 2025 – Smart Solutions HR analysis
Source: CEO.com.pl
