Planned changes to labour market legislation are being discussed more and more openly in public debate. According to government announcements, the new regulations could have a real impact on the earnings of millions of Poles. In extreme cases, some people may lose more than PLN 2,000 a month in take-home pay.
Although the changes are meant to increase employee protection, experts warn that the consequences may prove much more severe - for employees and business owners alike.
What do the planned changes involve?
A key element of the proposed legislation is a significant expansion of the powers of the National Labour Inspectorate (PIP). Inspectors are to be given the ability to administratively reclassify civil-law contracts and B2B contracts as employment contracts, without having to refer the case to a court.
This means that if an inspector decides that a given working relationship has the characteristics of an employment relationship, that decision could automatically change the form of employment. The plans also include:
- wider use of remote inspections,
- more intensive data exchange between PIP, the Social Insurance Institution (ZUS) and the tax authorities,
- faster detection of irregularities in forms of employment.
Why might employees earn less?
At first glance the changes appear to be pro-social, but in practice, for many people they could mean a real fall in net income. Workers previously engaged under civil-law contracts or B2B contracts often benefited from more favourable tax and contribution rules.
Once a contract is reclassified as an employment contract:
- mandatory ZUS contributions increase,
- the way income is taxed changes,
- employer costs rise, which does not always go hand in hand with an increase in gross pay.
As a result, despite formally stronger employee protection, some people may receive a much lower take-home amount.
Consequences for business owners
For companies, the planned regulations mean greater legal and financial risk. Every form of cooperation will have to be carefully reviewed for compliance with labour law.
Potential consequences include:
- the need to convert contracts into employment relationships,
- an obligation to pay back-dated contributions and taxes,
- higher employment costs,
- the risk of administrative sanctions.
For many business owners, this may mean having to reorganise their business model or reduce their use of contractors.
A labour market facing uncertainty
The planned changes form part of a broader context of growing regulatory and fiscal pressure. Employees fear lower pay, while business owners fear losing the flexibility that has so far allowed them to adapt to changing economic conditions.
In the longer term, this may affect:
- the appeal of certain industries,
- the cost of doing business in Poland,
- the search for alternative forms of employment or foreign structures.
How to prepare for the coming changes
Both employees and business owners should review their situation now. The key steps are:
- an audit of existing contracts,
- an assessment of tax and contribution risks,
- adapting cooperation models to the new legal reality,
- long-term planning of employment costs.
In many cases, professional advice is essential to avoid costly mistakes and unforeseen consequences.
Summary
The planned legislative changes could significantly affect the financial situation of millions of Poles. Although the legislator's intention is to strengthen employee protection, the real effects may prove far more complex. In the face of the coming regulations, informed planning, risk analysis and the choice of safe legal solutions become crucial.
Have a question about this?
The first consultation is free - let us talk about your situation.
