National Labour Inspectorate reform in Poland – what the new regulations mean for companies

PIP reform – what the new regulations mean for companies

The amendment to the National Labour Inspectorate Act may significantly affect the way civil law cooperation arrangements in Poland are assessed, in particular B2B models. Despite earlier announcements of a scaled-back reform, its essential direction has been maintained – and the powers of the PIP have been clearly expanded.

Key changes

The new provisions provide in particular for:

✅ the possibility for a labour inspector to determine, by means of an administrative decision, that a given cooperation arrangement (e.g. B2B or a civil law contract) constitutes an employment relationship – while retaining the right to judicial review,
✅ broader and largely automatic exchange of data between the PIP, the Social Insurance Institution (ZUS) and the National Revenue Administration (KAS),
✅ the introduction of remote inspections,
✅ tightening of sanctions for violations of labour law.

An inspector’s decision – if upheld – may form the basis for further action by other authorities, in particular ZUS and the tax authorities.

B2B reclassification – what does not change

The amendment does not introduce an automatic presumption that B2B cooperation is improper. The existing assessment criteria remain decisive:

✅ the actual manner in which work is performed is determinative, not the content of the contract alone,
✅ the authority should take into account the intention of the parties,
✅ as a rule, an order to remedy the irregularities should be issued before a decision is made.

In practice, this means that the following elements continue to be of key importance:

• work performed under direction and supervision,
• a specified time and place of work,
• absence of real business risk on the part of the service provider,
• actual similarity to an employment relationship.

The risk of reclassification remains particularly high in “quasi-employment” models.

Referral to the Constitutional Tribunal – what this means in practice

The referral of the amendment to the Constitutional Tribunal does not affect its application. This means that:

➡️ the provisions will be in force and applied by the authorities,
➡️ only a future ruling of the Constitutional Tribunal may affect their scope.

Possible scenarios include:

1. the provisions being upheld without amendment,
2. selected regulations being struck down,
3. a broader challenge to the reform.

Importantly, Constitutional Tribunal rulings apply prospectively as a rule, and their effects may be deferred in time.

Implications for companies

The new regulations mean a real increase in the risk of inspections and reclassification of B2B cooperation – from the moment the act enters into force, regardless of the ongoing proceedings before the Constitutional Tribunal.

It is therefore worth taking action now:

✅ analysing not only contract templates, but above all the actual practice of cooperation,
✅ assessing the degree of subordination of contractors,
✅ verifying the genuine freedom to organise work,
✅ reviewing the remuneration model,
✅ assessing the contractor’s actual position within the organisational structure.

In many cases, it will be the manner in which the cooperation is performed – rather than its formal structure – that will be decisive for the authorities’ assessment.