The government is continuing work on the reform of the National Labour Inspectorate (PIP), whose central element is granting inspectors the power to independently and administratively determine the existence of an employment relationship. This means that an inspector will be able to conclude that cooperation based on a B2B contract, mandate contract, or another civil-law agreement actually constitutes employment – without involving a court.
Although this is still only a governmental draft and the final shape of the regulations may change, businesses and experts warn that the proposed solutions pose serious legal and financial risks for entrepreneurs.
Administrative determination of an employment relationship – risk of arbitrariness
The greatest concern stems from the fact that the key decision qualifying cooperation as an employment relationship would no longer be made by a court but through an administrative decision issued by a PIP inspector.
Experts point out that:
- cases concerning the determination of an employment relationship are complex and require assessment of numerous circumstances,
- currently, inspectors lose the majority of such cases in court (PIP wins fewer than half of them),
- shifting decision-making authority from courts to inspectors may lead to chaos and arbitrariness.
Another significant issue is the immediate enforceability of such decisions, which – even after minor amendments to the draft – remains one of the most strongly criticised elements by businesses.
Immediate financial consequences for companies
If an inspector classifies a B2B contract as an employment contract, the employer may be required to:
- register the worker with the Social Insurance Institution (ZUS),
- pay overdue social security contributions,
- implement labour law obligations (e.g., holidays, working time regulations),
- introduce HR procedures (personnel files, medical examinations).
For many companies – especially smaller ones – this may result not only in significant costs but also operational challenges.
Retroactive reclassification – long-term financial risk
The draft provides that an inspector may determine the existence of an employment relationship up to three years back. This may lead to the calculation of overdue social security contributions, taxes, and various employee claims on a large scale.
Experts emphasise that even with the three-year limit, the core issue remains: reclassifying historical contracts under new rules may violate the constitutional principle of legal certainty and trust in the state.
Risk of sanctions – including for alleged “retaliation”
The draft also introduces:
- the possibility of imposing financial penalties for alleged retaliation against employees,
- new forms of liability for damages linked to incorrect inspector decisions – although the proposed regulations are unclear and imprecise
Companies fear that in practice these provisions may result in double exposure to sanctions – from both PIP and labour courts.
Lack of predictability and increased risk of disputes
Many experts note that:
- the draft does not specify clear criteria that inspectors should follow when assessing an employment relationship,
- the lack of a standardised assessment tool increases the risk of inconsistent interpretations,
- businesses may find themselves in a constant state of uncertainty about whether their B2B contracts will be reclassified.
Some companies have already begun auditing their B2B arrangements, but many smaller firms cannot afford such proactive measures.
Summary
Until the reform is finalised, businesses should:
- analyse the nature of their B2B and civil-law relationships,
- verify whether the manner in which work is performed does not exhibit features of an employment relationship,
- organise documentation and communication with contractors,
- consider auditing areas at the highest risk of reclassification.
The risk of introducing the new regulations is real, and their consequences may be significant.
The planned changes to the classification of B2B contracts as employment contracts may lead to higher costs and an increase in legal disputes for businesses. Although the proposal is still at the legislative stage, companies should already begin preparing for its potential implementation and assess their current employment and cooperation models.
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