Reclassification of civil law contracts – we know what we should prepare for

Employment models to be reviewed – the new Act on the National Labour Inspectorate introduces the possibility of reclassifying civil law contracts as employment relationships.

On 12 March 2026, parliament concluded its work on the draft bill amending the Act on the National Labour Inspectorate and certain other acts. The current draft can be described as a compromise between the draft submitted in autumn by the Minister of Family, Labour and Social Policy and the expectations of businesses. The draft bill contains a number of changes that could have a real impact on the Polish labour market.

• New powers for the National Labour Inspectorate (PIP) – the National Labour Inspectorate is to be granted the power to independently determine the existence of an employment relationship in situations where a civil law contract has been concluded under conditions typical of an employment contract.
• Amendments to the Code of Civil Procedure – the introduction of separate procedures for appealing against decisions issued by PIP to the labour court.
• Individual interpretation – the chief labour inspector may, at the request of an authorised entity, issue an individual interpretation regarding whether a given legal relationship constitutes an employment relationship.New form of inspection – the broadening of inspection capabilities to include remote procedures and electronic document circulation.Exchange of information – facilitating and expanding cooperation between PIP, ZUS and KAS (as defined below).
• Higher penalties – an increase in the minimum and maximum thresholds for fines for offences specified in the Labour Code (up to as much as PLN 60,000 and PLN 90,000).

PIP powers and reclassification of contracts

In the case of cooperation based on civil law contracts (contracts for services, B2B, specific-task contracts), the regional labour inspector will be able to issue an administrative decision on establishing the existence of an employment relationship. A prerequisite for issuing such decision is the employer’s prior failure to comply with an order to remedy any breaches relating to the implementation of a civil law contract or the conclusion of an employment contract. However, when issuing a decision, the National Labour Inspectorate takes into account the will of the parties, provided that it is not contrary to applicable law, in particular to labour law provisions or the principles of social coexistence, and does not seek to circumvent the law.

A labour inspector’s decision to reclassify a civil law contract takes legal effect from the date of its issuance in respect of labour law, taxes and social security and health insurance contributions. However, the decision itself becomes enforceable only after the expiry of the appeal period or following a final court ruling, if an appeal is lodged. An appeal against a decision of the regional labour inspector must be lodged in writing through the inspector to the relevant court within one month of the date of service of the decision.

The decision issued by the National Labour Inspectorate will contain the following elements determined by the inspector:

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

Court proceedings

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

• a standard procedure to establish the existence of an employment relationship (with the possibility of an inspector’s participation); and
• an appeal against a decision of the chief labour inspector (with a one-month deadline for lodging the appeal).

Importantly, in the case of standard proceedings, the court is required to take steps to ensure that the hearing at which the case is to be heard takes place no later than one month from the date of the filing of the claim.

In appeal proceedings, the appeal is lodged through the regional labour inspector, who, should they consider the appeal to be fully justified, may amend or overturn the contested decision. Furthermore, there is no provision for referring the dispute to an arbitration tribunal; however, it is possible for all parties to the proceedings to reach a settlement.

Individual interpretations

The chief labour inspector may, at the request of an authorised entity, issue an individual interpretation regarding whether a given legal relationship constitutes an employment relationship within the meaning of Article 22 §1 of the Labour Code. The relevant application must contain a description of the facts or a future event, the applicant’s position, and is subject to a fee of PLN 40. The interpretation should be issued within 30 days of receipt of the completed application. The interpretation is not binding on the applicant, provided that the applicant may not be subject to administrative or financial sanctions or penalties to the extent that they have complied with the obtained individual interpretation. The individual interpretation is binding on the authorities of the National Labour Inspectorate and may be amended or revoked only in the event of a change in the circumstances of the case.

New rules on inspections and data exchange

The draft bill provides for the introduction of remote inspections and the possibility to deliver documents in electronic form. Furthermore, the National Labour Inspectorate, the Social Insurance Institution (ZUS) and the National Revenue Administration (KAS) are to be granted broader powers to exchange information, which will allow for a more comprehensive assessment of the entities being inspected.

Higher penalties

The proposed amendment to the Labour Code introduces an increase in the minimum and maximum thresholds for fines for offences specified in the Labour Code. The upper limits are to be increased from PLN 30,000 and PLN 45,000 to PLN 60,000 and PLN 90,000, respectively.

Entry into force and grace period

The draft bill is currently awaiting the signature of the President of Poland and is due to come into force three months after its publication. Furthermore, an entity which, prior to the Act coming into force, employed a person under a civil law contract, even though that relationship had the characteristics of an employment relationship, may avoid liability, provided that it voluntarily takes actions to comply with the law by concluding an employment contract within 12 months of the Act coming into force.