The new powers of the National Labour Inspectorate are now in force
New powers for the National Labour Inspectorate come into force
by Anna Skuza, LL.B.
On 7 April 2026, an amendment to the Act on the National Labour Inspectorate was published in the Journal of Laws. This is one of the most fundamental changes to Polish labour law in recent years. Thanks to this amendment, the Inspectorate gains a powerful tool: the right to convert civil law contracts and B2B contracts into employment contracts by means of an administrative decision.
Below we present a detailed summary of the new provisions and their implications for businesses.
A decision instead of a judgment
Until now, a labour inspector who, during an inspection, questioned the nature of employment (e.g. under a contract of mandate or a B2B contract) had to bring an action before the labour court to establish the existence of an employment relationship. Only a final judgment, issued after what was usually a time-consuming evidentiary procedure, could change the nature of the legal relationship between the parties – and this with retroactive effect – from the date the contract first came into force. In practice, this usually took several years, and the National Labour Inspectorate’s activity in this area was rather sporadic.
Under the new regulations, the Labour Inspectorate has gained the power to issue a decision on its own confirming the existence of an employment relationship. The condition is that the manner in which the tasks are performed meets the criteria set out in Article 22 § 1 of the Labour Code (subordination, a specified place and time, and personal performance of work).
Importantly, when analysing a case, the inspectorate is obliged to take the parties’ intentions into account. However, if the authority considers that these intentions are contrary to the law, the principles of social coexistence, or are aimed at circumventing the law, they will be disregarded when issuing a decision.
Two-stage procedure
The Act introduces a two-stage mechanism for the reclassification of contracts.
Firstly, upon identifying irregularities, the labour inspector issues an order to remedy the breaches (e.g. to conclude an employment contract or to remove the characteristics of an employment relationship from a civil-law relationship) and sets a deadline for its implementation.
Only in the event of non-compliance or incorrect compliance with the order does the regional labour inspector issue a reclassification decision.
This decision specifies the key elements of the employment relationship (type of work, date of conclusion of the employment contract, working hours and remuneration). If it is not possible to determine these conditions precisely, the regulations provide that the employment contract shall be deemed to have been concluded for an indefinite period, on a full-time basis, at the company’s premises and for the minimum wage.
It is worth noting that, regardless of the new procedure, the National Labour Inspectorate retains its existing right to bring claims before the labour courts.
Consequences of the decision and higher penalties
Contrary to the original assumptions of the draft, the reclassification decision has legal, tax and social security consequences only for the future. However, this does not prevent the tax authorities and the Social Insurance Institution (ZUS) from investigating and pursuing arrears for past periods based on their own powers.
Importantly, the reclassification decision will, in principle, only become enforceable once the court’s judgment has become final (or the deadline for appealing against it has expired). An exception applies to persons enjoying special protection against dismissal or termination of their employment contract (e.g. pregnant women), in respect of whom the decision is immediately enforceable.
Replacing employment contracts with civil law contracts will continue to constitute a breach of the employee’s rights. Incidentally, under the Act in question, the maximum penalties for infringements of employees’ rights will be increased – depending on the case, from PLN 30,000 to PLN 60,000 and from PLN 45,000 to PLN 90,000.
Companies that voluntarily convert civil law contracts into employment contracts within one year of the Act coming into force will be exempt from liability for previous irregularities.
Protection of reclassified employees
The Act introduces a prohibition on the unfavourable treatment of persons whose contract has been reclassified by way of a decision. Such reclassification cannot be a reason for the company to give notice or terminate the contract. A breach of this prohibition will constitute a new offence against the rights of the employee.
However, during proceedings on an appeal against a decision, the court generally grants protection consisting of the application of labour law provisions for the purposes of termination and cancellation of the contract:
· protection against termination and cancellation of the contract
· appeal against termination.
New inspection tools
The National Labour Inspectorate (PIP) has gained broader access to data from the Social Insurance Institution (ZUS) and the National Tax Administration, which significantly enhances its ability to identify entities employing staff under civil law contracts in conditions akin to an employment relationship and to select them for inspection.
The Inspectorate will also gain the ability to conduct inspections remotely, including visual inspections of workstations via video transmission.
Individual interpretations
With entrepreneurs in mind, the institution of an application for an individual interpretation to the Chief Labour Inspector has been introduced. An individual interpretation is not binding on the applicant. However, compliance with it excludes financial and administrative liability (provided that the factual situation in the company is identical to that described in the application).
Entry into force of the Act
The Act will enter into force in its essential scope after a 3-month vacatio legis, i.e. on 8 July, and its provisions will also apply to civil contracts concluded prior to that date.
At the same time, the President has referred it to the Constitutional Tribunal for subsequent review; this referral does not suspend the provisions’ validity.
What does this mean for businesses?
The new regulations necessitate a review of employment models. The main risks are:
- Increased costs: The need to pay full contributions, paid leave and overtime.
- Litigation risk: A decision by the National Labour Inspectorate (PIP) may provide an employee with ready-made evidence to pursue financial claims for the last three years.
- Cross-checks: Reclassification by the PIP may result in inspections by the Social Insurance Institution (ZUS) and the Tax Office to recover outstanding public-law contributions.
How to prepare?
We recommend using the vacatio legis period to audit current B2B contracts and contracts for specific tasks, as well as the practices surrounding their conclusion and performance, for characteristics typical of an employment relationship and other risk factors.
High-risk contracts should be identified and their voluntary conversion (taking advantage of the amnesty) or an actual change in the manner of their performance should be considered, in order to eliminate characteristics of employee subordination and to introduce mechanisms limiting the risk of reclassification into the company’s existing processes.
Please feel free to contact our Employment Law Team. We will assist you in conducting an audit of your employment models, preparing a request for an interpretation from the Chief Labour Inspector, and providing support during an inspection by the National Labour Inspectorate.