Employee matters and respect for human rights

The ORLEN Group employees are provided with fair and supportive working conditions. The Group’s relations with internal stakeholders and the external business environment are based on integrity, respect in everyday relationships and on dialogue, cooperation and involvement of each staff member in building a culture consistent with the Company’s core values. ORLEN Group values: Responsibility, Progress, People, Energy and Dependability.

Activities related to employee matters and respect for human rights are pursued mainly by the HR function and the Ethics Officer.

Overview 

Responsibilities of the HR function include:

The Ethics Officer takes steps to investigate and eliminate behaviours which conflict with the ORLEN values, and in particular:

Its key responsibilities include:

Employee relations KPIs at the ORLEN Group in 2021 and 2022

Employee relations KPIs at ORLEN and for employees transferred in 2022 as a result of the acquisition of companies of the former LOTOS and PGNiG Groups and Rafineria Gdańska

Collective bargaining agreements

Composition of governance bodies and breakdown of employees per employee category according to gender, age group and other indicators of diversity at the ORLEN Group in 2021–2022:

Diversity of governing bodies and employees

Composition of governance bodies and breakdown of employees per employee category according to gender, age group and other indicators of diversity at ORLEN and for employees transferred in 2022 as a result of the acquisition of companies of the former LOTOS and PGNiG Groups and Rafineria Gdańska:

Other employee data at the ORLEN Group for 2021–2022:

The proportion of temporary work contracts at the ORLEN Group is negligible and they are used on an as needed basis. Employee turnover rates at the ORLEN Group are similar to those recorded in 2022.

Other employee data at ORLEN and for employees transferred in 2022 as a result of the acquisition of companies of the former LOTOS and PGNiG Groups and Rafineria Gdańska.

No quantitative information is available. The lack of a uniform HR system at the ORLEN Group means that it is currently not possible to collect complete data on this indicator at the ORLEN Group level. At the same time, ORLEN is taking intensive steps to collect, develop and report the above-mentioned indicator at the Group level for 2023 or the following year.

Workers who are not employees

No quantitative information is available. The lack of a uniform HR system at the ORLEN Group means that it is currently not possible to collect complete data on the above-mentioned indicator at the ORLEN Group level. At the same time, ORLEN is taking intensive steps to collect, develop and report the above-mentioned indicator at the Group level for 2023 or the following year.

Employee engagement and satisfaction KPIs

In 2022, ORLEN held the fifth edition of the employee engagement and satisfaction survey. It covered 71%, or more than 4,000 employees, who shared their opinions on their working environment.

The key indicators captured by the survey were:

• The employee engagement rate, which was 64%, i.e. 13 pp above Poland’s average for 2021 and as much as 32 pp above the European energy sector 2019–2021 benchmark. This result places ORLEN in the high score range (upper quartile). The indicator provides information on what percentage of employees are actively engaged with the organisation. An engaged employee speaks positively about the company, associates their professional future with it, and is willing to go above and beyond for their employer
• Overall employee satisfaction, which was 75%

In addition to the standard indicators, the survey examined employee satisfaction with 13 aspects of work environment that have a major positive effect on employee engagement.Spośród nich najwyżej oceniono:

The highest rated aspects were:

• Engaging leaders – 76%
• Values – 76%
• Cooperation – 72%
• Work-life balance – 67%

At ORLEN, for 23 questions on the work environment the satisfaction rates improved (by 3 pp or more). The areas in which the satisfaction rates rose the most were the relationship with the manager, free and open communication, support in adapting to change, encouragement to come up with ideas and suggest changes and improvements.

Workforce

In 2022, the ORLEN Group’s hiring policy was focused on recruiting top quality specialists for both day-to-day operations and strategic projects.

Remuneration Policy

The rules of remuneration in place at ORLEN are laid down in the Collective Bargaining Agreement. The main components of remuneration are base pay (determined according to the Pay Grade Table and Base Pay Table) and a bonus. Employees are covered by monthly, quarterly or annual bonus schemes, depending on positions held. Employees are also entitled to receive an extra annual bonus for achievement of solidarity targets, and a number of allowances, including shift-work allowance, chemical emergency service allowance, or expat allowance. For particularly outstanding achievements, an employee may be awarded a prize, financed from the Employer Prize Fund.

The ORLEN Group companies have implemented consistent rules for granting awards under the Employer Prize Fund (set forth in a formal document), and the award process for tool-integrated companies is carried out through the centralised IT system SSEGK.

Ratio of the average basic salary of women to men

In 2022, the ORLEN Collective Bargaining Agreement was amended in consultation with the trade unions. The amendments were included in Protocol No. 5 to the Collective Bargaining Agreement. The key changes consisted in updating the Base Pay Table, setting new bonus rates, and replacing the quarterly/annual bonus with a quarterly bonus. An important aspect of the amendments is that they have significantly increased the minimum pay rates for particular positions in the Pay Grade Table, making them more competitive and attractive to potential employees. A portion of the bonus amount was included in the base pay and the maximum statutory bonus amount was reduced, which made it possible to increase employees’ fixed remuneration while keeping the variable portion at market levels and maintaining a performanceoriented remuneration system.

The terms of the Collective Bargaining Agreement agreed with the trade unions in Protocol No. 5 include solutions to reward the loyalty of employees with long years of service for the organisation, set higher pay levels for those employees who operate complex units, pay allowances to emergency service staff in key health and safety areas, and reward employees willing to share their knowledge. The changes came into effect on January 1st 2023.

In addition to the amendments to the Collective Bargaining Agreement agreed with the trade unions at ORLEN in 2022, which came into effect on January 1st 2023, Collective Bargaining Agreements were also agreed at ORLEN Południe and Energomedia (with the changes effective as of January 1st 2023), and Polska Press and Energa Obrót (with the changes effective as of February 2023). New Remuneration Rules were introduced at CCGT Grudziądz, RUCH, Energa Invest, Neptune 1 and ORLEN Energia.

¹⁷ The average gross monthly remuneration at the ORLEN Group does not include remuneration at the former LOTOS and PGNiG Groups, which became part the ORLEN Group in the second half of 2022 (in August and November, respectively). Otherwise, the value would have been distorted due to the inclusion of remuneration only for the last months of 2022 and would not have been comparable year on year.

Development of the human resources functions and standardisation of processes across the ORLEN Group

HR and payroll solutions at the ORLEN Group evolve continually so as to effectively support its business processes. Based on the HR policy for the ORLEN Group, HR and payroll processes at the Transaction Centre are optimised on an ongoing basis. IT systems are developed to streamline staff administration activities and improve the efficiency of HR processes at the Group.

After the implementation of an electronic attendance list and an application for leave planning, work began on an e-file concept. Changing the way in which employee files are maintained will not only facilitate administration activities in relation to employees working in various locations across Poland and abroad, but will also help optimise costs and contribute to sustainable development goals. The standardisation of HR processes, undertaken a few years ago, provides a sound basis for further improvement of HR processes and work optimisation at the Corporate Service Centre. In parallel, work is being carried out on harmonising HR and payroll systems at ORLEN Group companies in order to streamline administration activities and roll out uniform solutions also at new Group companies. 

Human resources management at the ORLEN Group 

In 2022, the focus was on consistent implementation of the HR policy, which helps build an engaging work environment, develop leadership skills among the management staff and implement standards and best practices at further Group companies. The main projects in 2022 included an engagement survey conducted at all ORLEN Group companies and implementation of a new competence model and a mentoring programme. At the same time, after the merger with Grupa LOTOS, the HR Policy was approved for implementation at further companies of the former LOTOS Group. An operational HR model was confirmed and on this basis the organisation of work at the HR Area was reviewed and adapted to suit the needs of the new ORLEN Group. The HR Policy has already been implemented by 83 companies, which now cooperate with the HR Area in running projects and programmes relevant to human resources management at the ORLEN Group. 

In connection with optimisation of the Group’s Strategy for 2020–2030, new priorities were defined for the following key areas: employer branding, value-creating innovations, engagement, diversity, and competencies. Work has also begun on updating the HR Strategy. As part of the PMI Integration and Transformation project, conceptual work began on developing a programme to integrate the companies. Together with the Strategy Area, a method of effective change management within the organisation is being developed in order to successfully transform the Group.

In 2022, the Career Development Sessions project was continued for designing personal development plans based on the assessment of an employee’s development needs. In addition, ORLEN and other ORLEN Group companies continued activities related to the Age Management Policy to counteract adverse consequences of demographic shifts on the labour market. 

An additional consideration vital in the context of the need to hire and develop specialised staff is the Group’s dynamic growth, including the construction of a new Olefins 3 complex and the launch of a new Research and Development Centre in Płock. The Group’s HR needs underpin its employer branding efforts, which consist in expanding the reach of internship programmes, continuing the brand ambassador programme, social media activity, and building relations with the academic community.

Development and training

In 2022, a new project named Festival of Diversity was launched, centred on such topics as collaboration in diverse teams, knowledge and experience sharing, and organisational culture based on respect and openness. It also addressed issues relating to supporting individuals with disabilities and development of female leadership. An additional option was an opportunity for employees to undergo blood tests as part of preventive healthcare.

Programmes to develop data science analytical skills, support digitalisation projects and strengthen project management skills were continued. The programme aims to develop project managers on a multidimensional level, also taking into account the agile methodology.

In addition, online lectures were given on diversity at work, well-being, competencies of the future, personal effectiveness and social media.

As in previous years, initiatives were continued to foster a culture of work safety and provide safe driving, first aid and mandatory training as well as training on mentoring for behavioural advisers dealing with occupational safety. Employees also improved their foreign languages skills as part of existing projects.

In 2022, development activities were continued to support implementation of the ORLEN Group’s business strategy.

As part of the efforts designed to hone the skills and attitudes of the management staff, further training was offered under the ORLEN Group’s manager development programme. As in previous years, in 2022 managers advanced their team management skills, including in change management and leading distributed teams. They were also offered additional development options to broaden their knowledge in such areas as support for acquisitions, building a culture of innovation, feedback, diversity management, personal energy management, cyber threats and defence techniques, as well as in mentoring and managerial coaching.

Age Management Policy

In 2022, activities under the ORLEN Group’s Age Management Policy were continued with the use of an application for monitoring the HR situation in connection with employees reaching the retirement age and succession planning. The application was successively implemented by further ORLEN Group companies.

The Policy seeks to address the negative effects of demographic changes on the labour market. Activities in this area focus on raising the management staff’s awareness of age management, promoting intergenerational diversity and communication, facilitating knowledge and skill transfer, undertaking employer branding initiatives, especially in the local labour market, at universities and schools, and succession planning within the company.

Social dialogue and employee benefits

The scope of benefits to the current and former employees of ORLEN and ORLEN Group companies (agreement on the joint social benefits programme) is defined by the Corporate Social Benefit Activity Rules. Employees are entitled to social benefits including assistance towards the cost of employee holidays or sanatorium treatment, childcare, holidays for children and teenagers, school starter kits, family support, sports and fitness membership, cultural and educational activities, holiday stay with physical therapy treatments, or inpatient rehabilitation for children with disabilities. Employees’ children receive Christmas gifts. Employees may apply for non-repayable allowances and repayable housing loans. Social benefits are also granted to former employees of ORLEN and ORLEN Group companies which are parties to the agreement on the joint social benefits programme.

Approach to stakeholder engagement

The ORLEN Group believes in social dialogue with employee representatives, i.e. the trade unions, based on independence of the parties, legal compliance, as well as trust, mutual willingness to compromise, and observance of the rules. The rules of social dialogue are founded on internal regulations and generally applicable laws, which facilitates development of constructive and lasting solutions in partnership with employee representatives.

The ORLEN Group is also engaged in dialogue with the European Works Council. The Council is another form of collective dialogue, in this case at the European level, as continued growth of the ORLEN Group enables application of mechanisms that engage employees in the broad collective efforts not only at the national but also at the international level.

The ORLEN Group recognises the trade unions as representatives of all employees in matters concerning their collective rights and interests, within the scope defined by laws of general application. The ORLEN Group is ready to engage with the trade unions to settle any and all issues that may emerge, especially those concerning collective rights and interests of employees, in the course of social dialogue conducted in good faith, with mutual respect for the interests of each party and for employees.

Pursuant to Annex 4 to the Collective Bargaining Agreement for Employees of Polski Koncern Naftowy ORLEN S.A., i.e. the ‘Rules of cooperation between the employer and the trade unions in restructuring matters’, the trade unions are given 35 or 45 days’ advance notice of any planned operational changes affecting employment. Negotiations with the trade unions begin 15 days after a process is communicated and last for 20 or 30 days depending on what the process involves (if the process involves mass redundancies – 20 days, and if it involves transfer of employees to another employer under Article 23.1 of the Labour Code – 30 days).

The ORLEN Group believes in social dialogue with employee representatives, i.e. the trade unions, based on independence of the parties, legal compliance, as well as trust, mutual willingness to compromise, and observance of the rules. The rules of social dialogue are founded on internal regulations and generally applicable laws, which facilitates development of constructive and lasting solutions in partnership with employee representatives.

Benefits provided to full-time employees that are not provided to temporary or parttime employees

The employer provides financial assistance to lowincome families. Employees may apply for assistance towards the cost of holiday stay with physical therapy treatments for a disabled child with a caregiver or inpatient rehabilitation for a disabled child, as well as non-repayable allowances and repayable housing loans.

ORLEN offers a uniform employee benefits package to employees of all ORLEN Group companies participating in the joint social benefits programme. Which as at December 31st 2022 covered 28 Group companies. All personnel employed under employment contracts, whether full-time or part-time, are entitled to benefits from the ORLEN Social Benefits Funds. Benefits from the Social Benefits Fund guaranteed to former employees of ORLEN and other Group companies covered by the joint social benefits programme include: co-financing of holidays or sanatorium treatment, holidays for children and teenagers, school starter kits, Christmas gifts for children, non-repayable financial support, holiday stay with physical therapy treatments for a disabled child with a caregiver or inpatient rehabilitation for a disabled child, nursing home care, repayable housing loans and, additionally support for lowincome employees, birthday cash benefits for former employees aged 70+ (paid every five years) and 95+ (paid every year).

As a company committed to implementing the latest solutions that help maintain a healthy worklife balance, ORLEN runs the Family Friendly Employer programme, offering such benefits as additional two days off to care for a child under the age of three, two days off to care for a disabled child under 24 years of age, a nursery school for children of employees, one additional hour for breastfeeding, medical care during pregnancy, baby feeding rooms, gifts for newborn babies, and providing employees on parental/childcare leaves with up-to-date information on developments across the Group. In 2022, the project was expanded to include additional two days off for taking care of parents/parents-in-law. Most of the programme’s components have also been implemented by other ORLEN Group companies as part of best practice sharing.

ORLEN provides extensive preventive medical care covering employer-sponsored medical plans going beyond the traditional scope of occupational medicine, including consultations with specialists, diagnostic tests, rehabilitation and flu vaccinations. A uniform standard for employer-sponsored medical plans is in place across the ORLEN Group. Preventive healthcare programmes are run in cooperation with Centrum Medyczne Medica Sp. z o.o. of Płock and the Military Institute of Medicine of Warsaw as part of a project to investigate health impacts of the work environment. In addition to those programmes, disease prevention campaigns are organised at the workplace on an ad hoc basis to facilitate medical check-ups and encourage employees to choose a healthier diet and to lead a more active and healthy lifestyle.

The purpose of this initiative is to provide psychological support and assistance to employees and their immediate family members in difficult professional and private life situations. The practice is run by the Occupational Psychology Centre operating within the ORLEN structures, which offers immediate assistance in emergencies. After a fatal accident that occurred in the Production Area in September 2022, all employees of the affected department immediately received support, which continued on the following days. A psychological support workshop on how to deal with severe stress was co-organised for staff, with the aim of providing them with additional knowledge helpful in regaining mental resilience. Lectures were also co-organised for employees and managerial staff teaching them how to take care of their own well-being and the wellbeing of their subordinates (‘Leader of Well-Being’, ‘How to consciously manage your own energy’).

The lectures reflected the organisation’s holistic approach to employees. A total of 81 support conversation were conducted in 2022 with employees of ORLEN, the ORLEN Group and their immediate family members. The assistance was offered in connection with various circumstances, not only workplace situations. Psychoeducation activities were also conducted, with a total of 20 publications issued in 2022 in various forms (communications, news, articles) and on diverse topics.

Health and safety topics covered in formal agreements with trade unions.

Care is taken to maintain a transparent social dialogue within the ORLEN Group. Health and safety issues are mutually agreed on and covered in formal documents negotiated with trade unions effective at ORLEN Group companies domiciled in Poland, which include:

ORLEN took part in the first edition of the Warsaw University of Technology Mentoring Conference, during which an employer brand ambassador and an athlete ambassador of the ORLEN Team shared their experiences in an inspirational lecture for participants. Recruitment for the third edition of the Ambassador programme was conducted in 2022, with new professional ambassadors starting their service in 2023.

Furthermore, as part of the image-building efforts, ORLEN’s solutions and practices were promoted through social media, in partnership with external firms, and through participation in expert panels, conferences, webinars, podcasts, debates, or offering expert commentaries. Campaigns to recruit interns as well as image-building campaigns were run, including the ‘Games You Can Play Not Only with Your Daughter – Games You Can Play not Only with Your Son’ gender diversity campaign with the aim of breaking stereotypes and highlighting the values, skills, and hobbies passed on to children, but also encouraging employees to promote work-life balance among their colleagues. The campaign promotes gender diversity and rewards benefits, including the cafeteria programme. The practice is being continued, joined by employees who participate in other internal projects related to employee hobbies and interests: Festival of Diversity, Orlen Passion, Employer Brand Ambassador, Shoot What Makes you Tick, and external campaigns, including ‘Two Hours for the Family’, the #IgnacyTEAM educational campaign, and Father's Day.

Education and talent acquisition policy

ORLEN consistently works to attract and retain talent, focusing of specific target groups relevant to the Company’s business areas – current and prospective employees, as well as students and graduates of vocational schools and universities. In 2022, a strong focus was placed on recruiting engineers, IT, power generation.

Realising the need to build an HR pipeline in professions that are crucial to the industry, given especially the specific business profiles of the ORLEN Group companies, ORLEN engages in active partnerships with the academic community and vocational schools, creating synergies between business and science. Students receive expert support during hands-on activities and have the opportunity to take part in study visits and trainee placements offered by the ORLEN Group companies. ORLEN cares for the professional development of young people − students, university graduates and school leavers, by providing them with an opportunity to acquire their first professional experience on internship and work placement programmes. In 2022, ORLEN had 47 interns in the Headed for ORLEN programme, Energy for the Future programme carried out in cooperation with the Ministry of Climate and Environment and PGE Polska Grupa Energetyczna S.A., Polskie Górnictwo Naftowe i Gazownictwo S.A. and Polskie Sieci Elektroenergetyczne S.A., The Energy Academy Programme was run with the Lesław Paga Foundation, addressed to young people who plan to work in the energy sector in the future, and a partnership with the Main School of Fire Service in Warsaw. 

ORLEN Group Code of Ethics

Guidance on appropriate attitudes and conduct has been compiled in the ORLEN Group Code of Ethics. It is the ORLEN Group’s priority to offer fair treatment to all employees and third parties regardless of their age, gender, job, disability, denomination, nationality or beliefs.

Compliance with the ORLEN Group Code of Ethics is monitored by the Ethics Officer, who guarantees that employees, employers and all stakeholders can freely report violations, and raises employees’ awareness of business ethics and ethical standards, and of the importance of their own role in building the ethical corporate culture. The Ethics Officer is elected by ORLEN employees and performs his or her duties without remuneration. The Ethics Officer takes steps to investigate and eliminate behaviours which conflict with the ORLEN values and standards of conduct.

As part of ORLEN’s efforts to promote the adopted values and standards of conduct, as well as to foster the desired attitudes and behaviours, it carries out projects addressed to employees, which include the Distinguished ORLEN Employee title awarded every year in recognition of outstanding professional and social contributions and ethical behaviour in line with the ORLEN S.A. values and standards of conduct. It is the highest and most important distinction at the Company, awarded every year to employees in three categories: for outstanding service, special achievements or socially responsible attitudes.

Human rights training at ORLEN and the ORLEN Group in 2022

As part of the educational activities promoting the knowledge of the ORLEN Group Code of Ethics, since 2021 the Ethics Officer has conducted mandatory training sessions for management personnel. Topics discussed during the training sessions include the special role and tasks of managers in building an ethical organisational culture. In 2021, 96% of all management staff were trained in the subject. Currently, the training sessions are held once a quarter for newly promoted and newly hired managers. A mandatory e-learning course has been launched for the other employees, consisting of a lecture by the Ethics Officer, an interactive learning presentation and a knowledge test. The training covers topics related to the ethics system in place at ORLEN and other ORLEN Group companies, discusses the Code of Ethics, presents the mechanism for reporting and handling enquiries, concerns and violations of the Code of Ethics at ORLEN, and explains the role of the Ethics Officer. In addition, the Ethics Officer delivers lectures on ethics, including: ‘Building assertiveness. Assertive communication’, ‘Effective conflict management. Fair fighting’, ‘Management by values for managers’, and ‘Colour code – Communication styles encrypted in colours – Effective business communication’.

Human rights training at ORLEN and ORLEN Group in 2022

As at the end of 2022, 91% of ORLEN employees received human rights training. At the other ORLEN Group companies, the number of employees trained on the ORLEN Group Code of Ethics was 7,812. The number of employees trained in the subject has been steadily increasing.

The ORLEN Group Human Rights Policy introduced in 2022 outlines the key standards for conduct, behaviour and regulations applicable at the ORLEN Group, which are directly or indirectly related to the protection of human rights within the organisation and in relations with external stakeholders. The Policy was developed based on the ORLEN Group’s internal regulations, national legislation, international standards and guidelines, including in particular The Universal Declaration of Human Rights, the Declaration of the International Labour Organization on Fundamental Principles and Rights at Work, i.e. the key conventions of the International Labour Organization, the UN Guiding Principles for Business, that is the UN ‘Protect, Respect and Remedy’ Framework, OECD Guidelines for Multinational Enterprises, the International Finance Corporation Standards, and the Ten Principles of the United Nations Global Compact. The Policy relates to:

The ORLEN Group Conflict of Interest Management Policy was introduced in 2022 in order to promote transparency in business relations and ensure compliance with relevant laws, internal regulations and voluntary ethical standards adopted by ORLEN Group companies, and to establish clear responsibilities and a procedure for identifying and managing conflicts of interest

The Policy sets forth the ORLEN Group’s standards for the identification, disclosure and management of conflicts of interest, reflecting the ethical standards defined in the ORLEN Group Code of Ethics as well as international and industry standards regarding misconduct prevention, and taking into account the Best Practice for WSE Listed Companies and ORLEN Group companies’ internal regulations. Its purpose is to reduce the risk of corruption and misconduct in business processes, ensure due care in the activities of the ORLEN Group companies, raise employees awareness of how to avoid conflicts of interest and counteract misconduct, and define rules and standards of conduct for reporting, disclosing and managing conflicts of interest.

The values, principles and standards defined in the Code of Ethics apply to each ORLEN Group employee from their first day of work, regardless of their position or form of contract. Even if some of the standards of conduct contained in the Code of Ethics do not apply to a given job, this does not relieve the employee of the obligation to respond to or report violations of the Code. A variant path is defined for reporting and analysing information on actual or suspected cases of misconduct, depending on the severity and complexity of the problem and on the confidence of the parties involved. At ORLEN, a suspected violation of the values, principles and standards of conduct or any ethical dilemmas may be reported to:

The Line Manager, the Ethics Officer, or the Secretary of the Human Capital Committee.

Reports may also be made through the Anonymous Whistleblowing System (ASZN) to the Control and Security Office

A variant path is defined for reporting and analysing information on actual or suspected cases of misconduct, depending on the severity and complexity of the problem and on the confidence of the parties involved.

No incidents involving theft of company assets, a conflict of interest or alcohol abuse were reported. Most of the cases concerned violation of a specific provision of the ORLEN Group Code of Ethics. Most of the reported issues were investigated, with corrective measures implemented.

In 2022, four reports of misconduct were investigated under the Workplace Bullying, Discrimination and Harassment Prevention Rules. The Employee Relations Committee found three of those reports to be groundless and one of them to be unfounded in the part relating to workplace bullying and partially justified with respect to the place of work specified in the employment contract and the working time system of other employees holding the same job title.