Orange Polska S.A.

Management Reports • Dec 12, 2019

Current report (20/2019)Orange Polska S.A. - Warsaw, Poland12December 2019(translation of Polishversion)title:OrangePolska signed with trade unions the Social Agreement for the years2020-2021, under which up to 2,100 employees may benefit from voluntarydepartures.

Pursuant to Article 17(1) of the Regulation (EU) No. 596/2014 of theEuropean Parliament and of the Council of 16 April 2014 on market abuse(market abuse regulation) and repealing Directive 2003/6/EC of theEuropean Parliament and of the Council and Commission Directives2003/124/EC, 2003/125/EC and 2004/72/EC, the Management Board of OrangePolska S.A. ("Orange Polska") announces the conclusion of a SocialAgreement with the Social Partners.

Orange Polska signed with trade unions the Social Agreement for theyears 2020-2021, under which up to 2,100 employees may benefit fromvoluntary departures.

On December 12, 2019, the Management Board of Orange Polska concludednegotiations with the Social Partners on the terms of a new SocialAgreement. This will remain in force for the next two years, that is2020-2021. In parallel to negotiating the Social Agreement, OrangePolska completed negotiations on a Settlement for 2018 under the Act of13 March 2003 on special rules on termination of employment for reasonsnot attributable to employees (Journal of Law of 2016, item 1474).

In particular, the Social Agreement for 2020-2021 sets the number ofvoluntary departures in the next two years at 2,100 people anddetermines a financial package for employees leaving Orange Polska underthe voluntary departure scheme. It also provides for potential basicsalary rises (3.5% in 2020 and 2021) and the amount of additionalcompensation for employees who will reach retirement age in the nextfour years, while specifying the position and role of internal mobilityin supporting an allocation programme and offering participation in anoutplacement programme to people whose employment contracts are to beterminated by the employer. In addition, the Social Agreement for2020-2021 provides for the follow-up of the ‘Friendly Work Environment'programme and continuation of medical coverage.

The negotiated Settlement sets the number of employees to leave OrangePolska in 2020 at 1,250 and determines the terms of voluntary departuresin 2020 as well as the amount of severance pay and additionalcompensation for employees departing in 2020. The Settlement alsospecifies the rules and selection criteria to be applied to people whoseemployment will be terminated by the employer for reasons notattributable to employees. The amount of compensation package perdeparting employee will depend on their seniority in the Group inaccordance with the Intragroup Collective Labour Agreement.

The Management Board of Orange Polska will conduct the relevantanalysis, and the financial impact resulting from the aforementionedagreement will be covered in the accounts for the fourth quarter of 2019.