Another proposal for changes to the powers of the National Labor Inspectorate
On Friday, January 30, 2026, another version of the draft amendments to the Act on the National Labor Inspectorate was published, which is to introduce the possibility of reclassifying civil law contracts by administrative decision of the Ministry of Family, Labor, and Social Policy. The original draft met with numerous objections from the business community and other ministries, but despite earlier announcements by the government that work on the draft had been completed, the issue has once again been taken up in the legislative process.
It should be noted that the reform of the National Labor Inspectorate is one of the milestones of the National Recovery Plan, which was to come into force on January 1, 2026.
We invite you to read a brief summary in which we present the proposed changes and try to indicate what the adoption of the bill in its current form means in practice for employers.
Scope of regulation
The main objective of the act remains to limit the practice of concluding civil law contracts (contracts of mandate, B2B) in circumstances indicating the existence of an employment relationship. The new version of the draft still contains the key elements of the previous version:
- the PIP’s power to issue administrative decisions on the conversion of incorrectly concluded civil law contracts into employment contracts (“conversion decision”),
- exchange of data between the PIP, the Social Insurance Institution (“ZUS”) and the National Revenue Administration (“KAS”) for control purposes,
- introduction of remote PIP inspections,
- a twofold increase in the maximum fine (to PLN 5,000) that the PIP may impose in administrative proceedings,
- a twofold increase in the fines provided for in the Labor Code – to PLN 2,000 to PLN 60,000 (for acts currently punishable by a fine of PLN 1,000 to PLN 30,000) and PLN 3,000 to PLN 90,000 (for acts currently punishable by fines ranging from PLN 1,500 to PLN 45,000).
In addition, the new draft law provides for:
- the introduction of “orders to remedy violations” concerning the functioning of a civil law contract or the actual performance of work by a person for remuneration under an employment contract, which precedes the conversion decision, and whose non-performance entitles the National Labor Inspectorate to issue such a decision,
- the abolition of the immediate enforceability of the decision and the effect of the decision for the future – however, the decision issued will still take effect from the date of issue, and its enforceability has only been postponed until the decision becomes final or a judgment is issued in the case,
- introduction of the possibility of obtaining an individual interpretation of the application of labor law provisions concerning the determination of whether the legal relationship presented in the application constitutes an employment contract,
- introduction of security in cases concerning the determination of the existence or content of an employment relationship or in cases concerning an appeal against a decision of the district labor inspector, consisting in the fact that a civil law contract may be amended during the proceedings, terminated or dissolved only on the terms specified in labor law provisions concerning general and special protection of employees against termination or dissolution of an employment contract,
- the possibility of bringing an action to determine the existence or content of an employment relationship by a district labor inspector, in particular when it is necessary to determine the existence of an employment relationship for a period earlier than that which may be covered by the decision.
Consequences for employers
The key objection to the original draft amendments was the automation of the conversion decision combined with its immediate enforceability, which led to the immediate conversion of the relationship between the parties into an employment relationship and imposed labor law, tax, and contribution obligations on employers for the past and future periods in accordance with the individual arrangements of the labor inspector. tax and social security obligations for the past and future periods in accordance with the individual findings of the labor inspector.
The current proposal for amendments provides for a softening of this approach. On the one hand, the temporary effect of decisions issued by the inspector has been limited – as a rule, the date of conclusion of the employment contract is considered to be the date of issue of the decision, and if it is necessary to establish the existence of an employment relationship for a period earlier than that which may be covered by the decision, a court ruling is required. In addition, a system has been introduced for the employer to remedy violations after an order has been issued by the labor inspector, which the inspected party may comply with. Preceding the issuance of a conversion decision with an order to remedy violations is intended to “mitigate” the rigors of the proceedings themselves and prevent the negative consequences that could result from the issuance of a decision by the labor inspector.
From the moment the conversion decision becomes final, the employer will be obliged to pay PIT advances and social security contributions for the employee.
At the same time, if the labor inspector files a lawsuit to establish the existence of an employment relationship in an earlier period, a final confirmation that an employment relationship existed between the parties to the civil law contract entails the obligation to:
- paying outstanding PIT advances with interest,
- paying outstanding social security contributions with interest,
- correcting VAT returns in connection with the deduction of input VAT on purchased services (for B2B contracts).
In addition, from the date of the conversion decision, the employee will be entitled to employee rights not exercised under a B2B contract or contract of mandate, e.g., vacation leave or overtime pay, etc. The employment relationship of such a person will also be protected in connection with the security provided.
Furthermore, in the event of an appeal against the decision or a lawsuit filed by a labor inspector in cases concerning the determination of the existence or content of an employment relationship, the court automatically grants security in the form of the contract being able to be amended, terminated or dissolved only on the terms specified in the labor law provisions concerning general and special protection of employees against termination or dissolution of an employment contract. Thus, the entrepreneur (principal) will not be able to take advantage of, for example, the provisions of the Civil Code on termination of a contract, while the contractor (employee) will not be limited in their rights to terminate the contract under the provisions of the Civil Code. In practice, the safeguard will only restrict the free termination of the contract by the employer and will oblige the application of, among other things, such provisions as:
- the obligation to consult trade unions on the intention to terminate an employment contract,
- protection against termination during periods of absence or pre-retirement age,
- the obligation to apply the notice period applicable to the employment contract,
- the obligation to justify the termination in a clear and precise manner to the employee,
- the obligation to give notice in writing and to inform the employee of their right to appeal against the termination to the labor court.
Concluding a civil law contract in circumstances where, according to the Labor Code, an employment contract should be concluded
in accordance with the proposed changes would also be punishable by a fine of between PLN 2,000 and PLN 60,000 imposed on persons acting on behalf of the employer.
How to prepare for the upcoming changes
While waiting for the new regulations, it is already worth reviewing existing civil law contracts in terms of the risk of reclassification.
As part of our support, we offer:
- verification of existing civil law contracts and practices in terms of the risk of reclassification,
- verification of existing internal regulations regarding employee benefits granted to associates,
- comprehensive support in implementing changes that reduce the risk of reclassification
- taking into account labor law, personal income tax, and social security regulations.
We encourage you to contact Andersen’s experts, who will provide support in the process of adapting to the introduced solutions and assistance in preparing the relevant documents and internal procedures.
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