I'm not familiar with Polish labour law, but it could be that in Poland like in many other European countries concepts such as "denying overtime" are inherently illegal.
For a country with a minimal wage of €610 this is a significant difference.
Most of the companies will offer paid time off to contractors, end even companies offering high-paying jobs like pilots do in do the same: https://www.ft.com/content/b8f77f16-d865-11e8-ab8e-6be0dcf18...
I dunno about Poland, but where I live this type of employment has some caveats:
- You need save for your time off (holidays) yourself. - You save on social security taxes, but it means your salary is not compensated by it when you are ill (or your kids are ill and you need to take care of them), thus you need to save for this yourself. - I would like to say that you would need to save up more yourself for your retirement fund (as you pay less for state pension), but at these level of incomes, usually at both scenarios (self-employed vs being employed) you would like to do that, so it cancels out.
Also it may be illegal, i.e. if you are employed like a full time employee - you cannot work as an independent consultant/contractor. Though AFAIK this definition of "like a full time employee" is not very strict.
IMO problem is that income taxation should be treated (mostly) the same, no matter how you earn the money. Because now (where I live), the wealthier you are, the more elaborate schemes you can run to avoid paying taxes on your income.
Polish here. It is like you described but a) not many people know about this (sometimes I surprise some guys telling them their employment form - independent contractor for one company where you are actually working full time - is illegal) and b) I've never heard of someone being caught practicing this.
Yup. Me too.
It's not as bad with design/IT agencies anymore, but I know that lawyer agencies are still notorious for this. Big-ish lawyer agencies with dozens of lawyers have no employees, everyone is a "partner" (or whatever the term is).
In fact it's a funny rite of passage for most lawyers: after graduation they have to work for 3 years for a law firm before they are allowed to take the bar exam and become "real" lawyers. During this time they earn a salary. When they finally become "real" lawyers by passing the bar, they get fired. :) And immediately taken back on as contractors.
Associate lawyers (what you are before partner) are paid a regular salary as employees.
Law firms aren't healthy workplaces, but I wouldn't worry about the legal rights of the lawyers working for them.
It all depends on how your contract is written - if you have clauses that put some of the business risk on you (e.g. you give 3 month warranty on the code you write, or have some bogus penalties for contract breach, or other things, which I've never seen enforced) then it cannot be treated as full time employment, even if you have just one client for which you issue invoices.
The only thing that is an actual red flag for tax office is when you start as a full time employee, and then switch to running sole proprietorship and your previous employer remains your only client - then it is too obvious that this is just employment in disguise.
EDIT: Also, those "independent contractor" contracts come in different shapes. I, for example have just an hourly rate set, and then I get paid for the hours worked. Some people prefer to have flat monthly rate, and even some paid vacations included in their "B2B contracts", which makes it more suspicious.
Contractors are liable with all assets/wealth.
I don’t know what’s the typical arrangement in game industry, but in software engineering industry at large, B2B contracts are very common, due to rather preferable tax treatment. B2B gives 10-30% increase in net pay, and its downsides are lack of mandatory severance, mandatory time off days, overtime pay etc. In most scenarios these are not an issue, because if one can negotiate high pay justifying B2B, one can also negotiate time off and lack of overtime. Don’t know about game industry though.
Which explains why so many Ubisoft games are made in Canada...
Does Canada not subsidize other tech work? I’ve heard the pay at Blackberry was terrible for instance. The only good thing is that Canadians will be impressed if you call yourself a software engineer because they think you have an iron ring.