New powers of the Polish Labour Inspectorate 

1. Increased risk of reclassification of civil law contracts from 8 July – new powers of the labour inspectorate

For years, the risk of reclassifying a civil law contract as an employment contract has been one of the key issues for employers using cooperation models based on B2B arrangements, contracts of mandate or other civil law contracts. This is because the reclassification of a relationship depends not on the name of the contract, but on the manner in which it is performed – in particular, whether the criteria set out in Article 22 § 1 of the Labour Code are met, such as organisational subordination, personal performance of work, remuneration and the designation of the place and time of work. If these elements are present, the relationship may be recognised as an employment relationship regardless of the parties’ formal arrangements. The consequences of such a determination include the obligation to pay overdue social security contributions (ZUS) and taxes as for an employee, employee claims, financial penalties and other effects connected with the establishment of an employment relationship.

2. New powers of the regional labour inspector

As of 8 July 2026, the risk of reclassification will increase significantly due to the entry into force of an amendment to the Act on the National Labour Inspectorate. The new provisions grant regional labour inspectors the authority to determine, administratively, the existence of an employment relationship if they establish that the manner in which work is performed has the characteristics of employment. Alternatively, where deemed appropriate, the regional labour inspector may bring an action before the labour court to determine the existence or define the content of such a relationship. This constitutes a fundamental change compared to previous practice, under which the determination of an employment relationship was within the exclusive competence of the courts.

Before issuing an administrative decision, the inspector must allow the parties to the legal relationship to present their positions and must issue an order to the inspected entity to remedy the identified breaches. The deadline for compliance will be set so as to allow verification of implementation during the inspection itself. Only a failure to comply with the order will enable the issuance of a decision. When assessing the nature of the cooperation, the inspector will also be required to take into account the parties’ intention as to the type of contract, but only insofar as this intention is consistent with labour law provisions, the principles of social coexistence and does not lead to circumvention of the law.

3. Effects of the decision

An administrative decision confirming the existence of an employment relationship will take effect from the moment it is issued – both for labour law purposes and in the areas of taxation, social and health insurance and other funds. Reclassification with respect to earlier periods will be possible only if a court upholds a claim for the establishment of an employment relationship.

The decision will become enforceable upon the expiry of the one‑month period for lodging an appeal (if neither party files one), on the date the court judgment becomes final or on the date the decision is granted immediate enforceability, which may apply in cases concerning employees subject to special protection against dismissal. The amendment also provides for an accelerated procedure in cases concerning the establishment of an employment relationship – the first hearing should take place no later than one month from the filing of the statement of claim or the rectification of any formal deficiencies.

4. Key actions for employers before 8 July

The amendment also introduces a significant increase in penalties for breaches of labour law provisions (up to PLN 60,000–90,000), the possibility of submitting an application for an individual interpretation from the Chief Labour Inspector regarding the classification of a specific relationship, as well as a data exchange system between the National Labour Inspectorate (PIP), the Social Insurance Institution (ZUS) and the National Revenue Administration (KAS).

It also introduces provisions exempting employers from liability for the previous engagement of work under civil law contracts in conditions characteristic of an employment relationship, provided that, within 12 months of the entry into force of the changes, the employer voluntarily brings the situation into compliance with the law. Concluding an employment contract within the required timeframe will allow the employer to avoid the sanctions provided for in the Labour Code, although it does not exclude other consequences resulting from reclassification.

In practice, this means that all cooperation models based on civil law contracts should be reviewed before the changes enter into force on 8 July 2026 and prior to the first inspections in this area. It is advisable to carry out a review of existing B2B or other civil law arrangements at this stage to assess whether the manner in which work is performed exhibits the characteristics of an employment relationship.