Academic Scientific JournalsImpact of the So-Called the Budget-Related Act on the Pay Policy of Local Government Entities in Relation to Persons Managing Municipal Companies – Selected Issue
Keywords:
principles of remuneration for managers of municipal companies, budget-related act, financial independence of local government units, budget actAbstract
The article is devoted to the analysis of the impact of budget-related acts from 2018 to 2024 on the remuneration policy of local government units towards persons managing municipal companies, regulated by the Act on the principles of shaping the remuneration of persons managing certain companies, in particular in terms of the systemic inconsistencies generated by this impact.
According to the thesis, the mechanism for determining the amount of remuneration of members of bodies in municipal companies is the product of the so-called the basis for calculating and the amount of the average monthly remuneration in the enterprise sector is a regulation enabling efficient adjustment of the amount of remuneration received by members of management and supervisory boards to the economic situation. The subject of the assessment is the negative impact exerted on the analyzed area by annual budget-related acts that freeze the so-called the calculation basis at the level of 2016, as a result of which the remuneration of management staff subject to the scope of application of the Remuneration Act has not changed even by a penny since 2017.
The set goal implied the need to use a theoretical, dogmatic and legal research method, based on the analysis of theoretical and legal publications and legal regulations, as well as the positions of supervisory authorities applying the examined legal acts.
The analysis of the provisions of the Act on Remuneration, in the author’s opinion, confirms the thesis that the statutory mechanism is clear and transparent, theoretically ensuring modern and competitive remuneration principles. However, the above-mentioned connection mechanism with the so-called freezing the dimension basis, using the so-called budget-related acts, de facto leads to the elimination of the possibility of using the purpose of the legal norm contained in the Remuneration Act. In the context of the identified systemic inconsistency, the author critically assesses the relationship of the budget-related act to the budget act, including the possible subjective and objective scope of its regulation, as an act specifying the provisions of the budget act.
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Legal Acts:
Act on the principles of shaping the remuneration of persons managing certain companies (consolidated text: Journal of Laws of 2020, item 1907, as amended), hereinafter referred to as: the Act on remuneration in companies. Effective date September 9, 2016.
Act on the remuneration of persons managing certain legal entities (consolidated text: Journal of Laws of 2019, item 2136), hereinafter referred to as: the Stamp Act. Act of 27 October 1994 on toll motorways and the National Road Fund (i.e. Journal of Laws of 2022, item 2483, as amended).
Act of September 15, 2000, Commercial Companies Code (consolidated text: Journal of Laws of 2024, item 18, as amended), hereinafter referred to as the Commercial Companies Code.
Act of December 8, 2017 on special solutions for the implementation of the Budget Act for 2018 (Journal of Laws of 2017, item 2371, as amended).
Act of November 9, 2018 on special solutions for the implementation of the Budget Act for 2019 (Journal of Laws of 2018, item 2435).
Act of February 20, 2020 on special solutions for the implementation of the Budget Act for 2020 (Journal of Laws of 2020, item 278).
Act of November 19, 2020 on special solutions for the implementation of the Budget Act for 2021 (Journal of Laws of 2020, item 2400).
Act on special solutions for the implementation of the Budget Act for 2022 (Journal of Laws of 2021, item 2445).
Act on special solutions for the implementation of the Budget Act for 2023 (Journal of Laws of 2022, item 2666).
Civil Code of April 23, 1964 (consolidated text: Journal of Laws of 2023, item 1610, as amended) .
Other Official Documents:
Announcement of the President ofthe Central Statistical Office of January 18, 2017 on the average monthly salary in the sector enterprises without payment of bonuses from profit in the fourth quarter of 2016.
Announcement ofthe President ofthe Central Statistical Office of January 17, 2018 on the average monthly remuneration in the enterprise sector excluding payments of bonuses from profit in the fourth quarter of 2017, published in: Journal of Laws GUS.2018.2; source: https://stat.gov.pl, accessed: October 25th, 2024.
Announcement of the President of the Central Statistical Office of January 18, 2019 on the average monthly salary in the enterprise sector excluding payments of bonuses from profit in the fourth quarter of 2018, published in: Journal of Laws GUS.2019.1; source: https://stat.gov.pl, accessed: October 25th, 2024.
Announcement of the President of the Central Statistical Office of January 21, 2020 on the average monthly remuneration in the enterprise sector excluding payments of bonuses from profit in the fourth quarter of 2019, published in: Journal of Laws GUS.2020.1; source: https://stat.gov.pl, accessed: October 25th, 2024.
Announcement of the President of the Central Statistical Office of January 21, 2021 on the average monthly remuneration in the enterprise sector excluding payments of bonuses from profit in the fourth quarter of 2020, published in: Journal of Laws GUS.2021.1; source: https://stat.gov.pl, accessed: October 25th, 2024.
Announcement of the President of the Central Statistical Office of January 21, 2022 on the average monthly remuneration in the enterprise sector excluding payments of bonuses from profit in the fourth quarter of 2021, published in: Journal of Laws GUS.2022.1; source: https://stat.gov.pl, accessed: October 25th, 2024.
Announcement of the President of the Central Statistical Office of January 20, 2023 on the average monthly remuneration in the enterprise sector excluding payments of bonuses from profit in the fourth quarter of 2022, published in: Journal of Laws GUS.2023.1; source: https://stat.gov.pl, accessed: October 25th, 2024.
Announcement of the President of the Central Statistical Office of January 22, 2024 on the average monthly remuneration in the enterprise sector excluding payments of bonuses from profit in the fourth quarter of 2023, published in: Journal of Laws GUS.2024.1; source: https://stat.gov.pl, accessed: October 25th, 2024.
Justification to the government’s draft act on the principles of shaping the remuneration of persons managing certain companies, form 514, p. 1, source: https:// www.sejm.gov.pl/Sejm8.nsf/druk.xsp?nr=514, accessed: March 18th, 2024.
Post-audit statement of the Supreme Audit Office, Branch in Lublin as part of Audit No. I/22/003/LLU Compliance with the provisions on the principles of remuneration of members of the management and supervisory boards of municipal companies in the Lublin Voivodeship, letter LLU.411.004.09.2022 of March 27, 2023, source : https://www.nik.gov.pl/kontrole/I/22/003/LLU/, accessed: March 28th, 2024.
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