Translation:She was saying that she is not working tomorrow.
Shouldn't there be the sequence of tenses as it is reported speech. "She said she wouldn't work the next day"
She said she wouldn't work the next day => She said that she wouldn't work the day after she said it.
She was saying that she is not working tomorrow => She said at some point (probably in the last five minutes but not necessarily) that she will not work the day after the present moment.
Well, we have "Present Continous in the future meaning" here and we'd prefer to keep to this construction.
"She said" on its own is accepted, but that's more like "Powiedziała" (she said one time).
In meaning, there isn't really any. Or it looks the same as in English.
But we try to keep those apart for learning reasons. We won't accept "nie będzie jutro pracować" for "she's not working tomorrow", because the Polish sentence means "she will not be working tomorrow".
shoudn't it be the past tense in the clause? "said" in the principle clause in the reported speech clearly demans "did"or "wasn't working" though the meaning is of future.
Well, "tomorrow" is still tomorrow from the moment I'm saying this. It didn't happen yet. Doesn't matter when she said it.
I can't think of a reason why... She was saying that tomorrow she would not be working.
Is not accepted. Please let me know if there is one.
The Polish sentence doesn't make use of the conditional mood.
If you interpret "would" as the past form of "will" (sequence of tenses), then it's still the wrong tense, because the original sentence is in present tense.