A Revolution in Labour Inspectorate Audits Is Coming – Employers in the Crosshairs

A revolution in the powers of the National Labour Inspectorate (PIP) is drawing closer – employers must prepare for the real risk of the reclassification of civil law contracts.

At the beginning of September, a draft law was published providing, among other things, for the unilateral power of the Regional Labour Inspector to determine whether an employment relationship exists, the immediate enforceability of such determination, and a significant increase in fines. These changes may substantially affect employment models in Poland and force a review of existing practices.

At the beginning of September 2025, a draft law amending the Act on the National Labour Inspectorate and certain other Acts was published on the website of the Government Legislative Centre. The draft introduces a series of changes that could have a real impact on the Polish labour market.

1. New powers of the Labour Inspectorate – the National Labour Inspectorate would be empowered to independently establish the existence of an employment relationship regarding situations in which a civil law contract was concluded under conditions typical of an employment contract
2. Amendments to the Code of Civil Procedure – the introduction of separate procedures for appeals against PIP decisions to the labour court
3. A new form of audit – the extension of audit procedures to include remote inspections and the electronic circulation of documents.
4. Information sharing – improved and extended cooperation between PIP, the Social Insurance Institution (ZUS) and the National Revenue Administration (KAS).
5. Higher sanctions – an increase in the minimum and maximum fines for offences defined in the Labour Code (up to PLN 60,000 and PLN 90,000 respectively).

Labour Inspectorate powers and reclassification of contracts

In cases of cooperation under civil law contracts (mandate contracts, B2B arrangements, contracts for specific work), the Regional Labour Inspector will be able to issue an administrative decision establishing the existence of an employment relationship. This decision will be immediately enforceable as regards the rights and obligations arising from the newly-designated employment relationship, and the employer will have only seven days to appeal to the Chief Labour Inspector. However, the appeal will not suspend the enforceability of the decision. The decision issued by the PIP will include the following elements determined by the Inspector:

• the type of employment contract concluded between the parties;
• the date of the conclusion of the employment contract and the commencement of work;
• the type of work;
• the place of work;
• the working time; and
• the amount of the remuneration.

Court proceedings

The amendment to the Code of Civil Procedure provides for two distinct types of proceedings:

• a classic action for a declaration of the existence of an employment relationship (with the possible participation of the Inspector); and
• an appeal against a decision of the Chief Labour Inspector (with a one-month time limit for lodging an appeal).

Importantly, in the latter case, neither a settlement nor submission to arbitration of the dispute will be permitted.

New rules on inspections and data exchange

The draft law envisages the introduction of remote inspections and the broader use of electronic document circulation. In addition, PIP, ZUS and KAS will gain broader opportunities for information exchange, enabling a more comprehensive assessment of inspected entities.

Higher fines

The planned amendment to the Labour Code provides for increases in both minimum and maximum fines for offences defined in the Labour Code. The lower and upper limits are to be raised from PLN 30,000 and PLN 45,000 to PLN 60,000 and PLN 90,000, respectively.

Risks for employers

The planned amendment significantly increases the risks for employers – particularly in cases in which civil law contracts are entered into instead of employment contracts. The mixed model (combining standard employment and civil law contracts) may become a particular target for PIP. In practice, risks that were previously acceptable may prove very costly, involving numerous appeal procedures or court disputes, with serious legal and tax consequences.

The new law is scheduled to enter into force on 1 January 2026. Before then, however, it must make it through the full legislative process, which we will be following closely in order to keep you informed of any developments.