Under the latest draft amendment to the National Labour Inspectorate (PIP) Act, inspectors would gain the power to convert civil-law contracts (umowy-zlecenia) and self-employed contractor agreements (B2B) into employment contracts by administrative decision. The problem? Even if a court later finds the decision to be wrong, the consequences may remain with the company "forever".
🧩 What does the draft provide?
- A regional labour inspector may issue a decision that a collaborator working under a B2B contract or a contract of mandate (umowa-zlecenie) was in fact an employee and is entitled to an employment contract.
- The decision would be immediately enforceable - the worker formally becomes an employee, and the company is obliged to calculate contributions and taxes as for an employee for the entire period, retrospectively.
- Even if the labour court later overturns the inspector's decision, it does not reverse all the financial consequences that have already arisen.
⚠️ Why is this a threat to businesses?
Imagine a scenario: a company works with an individual on a B2B basis, and a PIP inspector finds that this person is in reality an employee. The company must pay additional contributions, taxes and interest for the period before the decision. Although the court may set the decision aside, the period of "employment" as determined by the authority still stands. And this can go back as far as several years.
✅ What should employers do today?
- Review all relationships based on a contract of mandate or a B2B contract - are these people genuinely independent contractors, or are they part of the company's structure (under the criteria of employment law)?
- Set internal rules: when you use an employment contract, when a contract of mandate, and when B2B - and make sure reality matches what is written down.
- For B2B cooperation: make sure the person has their own resources, works independently, bears risk and provides services to multiple clients - everything that points to a business activity rather than employment.
- Consult a lawyer or adviser (for example, from our firm) for a risk assessment - especially if you operate an aggregation model or engage many people on a B2B basis.
🎬 Summary
The new PIP powers are nothing less than a role-reversal scene: a contract of mandate can turn into an employment contract before you have time to say "copy of the decision". If your relationships with contractors are unclear - it is better to get on top of this than to explain yourself to the authorities after the fact.
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