The widely discussed changes that came into force on 8 July 2026 are primarily intended to improve the effectiveness of combating the practice of replacing employment contracts with civil law contracts in situations where the actual manner in which work is performed corresponds to an employment relationship. The legislator concluded that the existing powers of the National Labour Inspectorate (Państwowa Inspekcja Pracy – PIP) did not provide sufficient protection for individuals performing paid work or ensure effective enforcement of labour law regulations. As a result, PIP has been granted new powers to issue administrative decisions confirming the existence of an employment relationship, while maintaining judicial review of such decisions. The new regulations are also intended to reduce the shadow economy and improve compliance with tax obligations, as well as social security and health insurance requirements.
For entrepreneurs, the new regulations primarily mean the need to review existing cooperation models based on mandate contracts and B2B agreements.
It is not the contract title but the way it is performed that matters
Dotychczas kwestie te były przedmiotem analiz zarówno Państwowej Inspekcji Pracy, jak i Zakładu Ubezpieczeń Społecznych (zwłaszcza w kontekście prawidłowości zgłoszenia do ubezpieczeń społecznych), przy czym PIP nie dysponowała kompetencją do samodzielnego stwierdzenia istnienia stosunku pracy w drodze decyzji administracyjnej.
First and foremost, it should be remembered that the title given to a contract is not decisive if its provisions or the manner in which it is performed indicate the existence of an employment relationship.
In practice, the analysis focuses, among other things, on whether the individual performs work personally, under the direction of the other party, at a place and time designated by that party, whether they are required to follow supervisors’ instructions, and whether the organisation of work reflects the characteristics of an employment relationship. Other relevant circumstances may include work schedules, working time records, the requirement to obtain approval for absences, and the use of tools or equipment provided by the contracting entity.
Until now, these issues have been examined by both PIP and the Social Insurance Institution (particularly in the context of the correct registration for social security purposes). However, PIP did not have the authority to independently determine the existence of an employment relationship by way of an administrative decision.
What changed on 8 July 2026?
Until 7 July 2026, even if a labour inspector concluded during an inspection that there was a risk that a civil law contract was being used improperly, they could not resolve the matter independently. The most far-reaching power available to labour inspectors was to bring an action before the labour court seeking confirmation of the existence of an employment relationship.
As of 8 July 2026, this has fundamentally changed. If, following an inspection, PIP determines that the way work is performed meets the conditions set out in Article 22(1) of the Polish Labour Code, the labour inspector may initiate administrative proceedings and issue a decision confirming the existence of an employment relationship.
This does not mean, however, that employers have been deprived of the opportunity to remedy identified irregularities. As a first step, the labour inspector should issue an order requiring the employer to eliminate the identified deficiencies, for example by concluding an employment contract or changing the rules of cooperation so that they genuinely reflect the nature of a civil law arrangement. Only if such an order is not complied with may the Regional Labour Inspector issue a decision confirming the existence of an employment relationship or refer the case to the labour court. Court proceedings will be particularly important where it is necessary to establish the existence of an employment relationship for an earlier period, which cannot be covered by a PIP decision.
In practice, however, it is not always clear whether a particular cooperation model should be classified as an employment relationship. In response to these challenges, the legislator introduced the possibility of obtaining an individual interpretation from the Chief Labour Inspector. A business may request an assessment of a planned or existing cooperation model and obtain a binding interpretation regarding the application of labour law provisions to a specific factual situation.
At the same time, the amendment introduces a transitional mechanism for entities that voluntarily regularise their existing employment models. An employer who, within 12 months of the entry into force of the new law, replaces an improperly used civil law contract with an employment contract will not be subject to liability for the offence of replacing an employment relationship with a civil law arrangement. This means that businesses which, after reviewing their existing cooperation models – including in light of an individual interpretation – conclude that changes are necessary, will be able to adapt their employment arrangements during the transitional period without the risk of sanctions.
PIP decisions are binding, but not final
A PIP decision is to specify, among other things, the type of contract, the date it was concluded, the type and place of work, working time, and the level of remuneration.
The most significant change introduced by the amendment is that an administrative decision issued by the Regional Labour Inspector may independently determine the existence of an employment relationship. Whereas previously only the labour court could make a final determination on this issue, judicial review will now take place only if one of the parties appeals the PIP decision. If no appeal is lodged within the statutory deadline, the decision will become final and produce legal effects without the need for a court judgment.
An appeal against the Regional Labour Inspector’s decision may be filed with the labour court by either the employer or the employee. The deadline for filing an appeal is 30 days from the date on which the decision is served.
It is also worth noting the adopted model of judicial review. The case will be examined by the labour court in accordance with the rules of the Polish Code of Civil Procedure, which is justified given that these courts have for many years adjudicated cases concerning the establishment of employment relationships. In practice, this may mean that the labour court will focus primarily on determining the true nature of the working relationship rather than reviewing whether PIP conducted the administrative proceedings correctly.
How should businesses prepare for PIP’s new powers?
In addition to reviewing employment models, businesses should organise their HR and payroll documentation, verify its substantive accuracy, and ensure that complete electronic versions are available, as PIP inspections may also be conducted remotely. It is also advisable to implement an internal inspection procedure with a clear allocation of responsibilities in the event of an inspection, thereby reducing the risk of errors.
The importance of proper preparation has also increased due to the higher penalties for breaches of labour law, which may reach PLN 60,000. The new regulations also provide for data exchange and cooperation between PIP, ZUS and the National Revenue Administration (KAS). In practice, this means that findings made by one authority may trigger actions by the others. For example, a PIP inspection may lead to an inspection by ZUS or KAS, while PIP may also select entities for inspection based on information received from those institutions.
We can already assess the level of risk within your organisation, implement corrective measures, support you during inspections, and represent you before PIP and the labour courts.
