Reform of the National Labour Inspectorate - where do the new rules come from?
From 8 July 2026, amended rules on the National Labour Inspectorate (PIP) have been in force. The reform was introduced as part of commitments under the National Recovery Plan (KPO) and was prepared by the Ministry of Family, Labour and Social Policy. Its central element is granting PIP inspectors an unprecedented power - the right to convert civil-law contracts and B2B contracts into employment contracts.
From the very beginning, these changes have been controversial in the business community. The Federation of Polish Entrepreneurs (FPP) warned at the legislative stage about the potential negative effects of the new regulation. The organisation pointed out that such far-reaching interference in companies' business models could destabilise the labour market rather than - as the legislator assumed - improve employment conditions.
The first weeks of the new rules seem to confirm employers' concerns. PIP immediately launched urgent inspections - one of the first companies subject to proceedings is Takeaway Express Poland, the operator of the popular Pyszne.pl platform. The case has become a symbol of the broader conflict between flexible cooperation models and the traditional employment relationship.
What does the procedure for converting a contract by PIP look like?
The new rules introduce a multi-stage procedure, knowledge of which is crucial for every business owner who uses civil-law contracts or works with individuals on B2B contracts. Understanding each step helps you prepare properly for a possible inspection and defend your interests effectively.
The contract conversion procedure runs as follows:
- PIP inspector's inspection - the inspector carries out an inspection at the workplace and finds that a given civil-law contract or B2B contract has the characteristics of an employment relationship.
- Order to remedy the infringements - PIP issues the employer with an order requiring it to change the form of employment to an employment contract.
- Employer's refusal - if the company fails to comply with the order, the inspector submits an application to the Regional Labour Inspector.
- Administrative decision - the Regional Labour Inspector issues a formal decision on the conversion of the contract, which changes the legal nature of the cooperation.
- Appeal to the labour court - both the employer and the worker have the right to appeal against this decision to the labour court, which suspends its enforcement until a final judgment is issued.
It is worth stressing that the right to appeal is available to both parties to the legal relationship. This means that a person engaged under a civil-law contract can also challenge the conversion decision if they prefer the existing form of cooperation. This is an important procedural safeguard that many companies and contractors are unaware of.
Financial penalties and the scale of complaints - hard data from the first days of the reform
The Minister of Labour, Agnieszka Dziemianowicz-Bąk, presented the first statistics on how the new rules are working. The data should prompt every employer to reflect seriously on the employment models they use. In just the first two days after the reform came into force, PIP received 70 complaints from workers. Importantly, the inspectorate found these reports to be justified and opened the relevant proceedings.
The number of reports before the reform is even more telling. Before 8 July, citizens submitted around 1,000 reports concerning the potentially improper use of civil-law contracts. It can be assumed that a large proportion of these cases will also be covered by inspections under the new rules.
The legislator has provided for severe financial penalties for breaching the rules:
- PLN 60,000 - the penalty for the first established infringement, that is, using a civil-law contract in conditions characteristic of an employment relationship.
- Up to PLN 90,000 - the penalty for a subsequent infringement, which means that repeat offending is punished much more severely.
The head of the labour ministry made no secret of the fact that the penalties are meant to act as a deterrent. At the same time, she stressed that the simplest way to avoid them is to comply with labour law. Some employers are already converting civil-law contracts into employment contracts themselves, wanting to avoid the financial risk associated with an inspection.
The FPP's position - criticism and alternative proposals
The Federation of Polish Entrepreneurs has taken a decidedly critical position on both the reform itself and the way it is being enforced. The organisation accuses the government of using PIP inspections as a means of pressure on business and of forcing changes to business models instead of protecting workers' rights. The FPP says it is already observing the first negative effects of the new regulations - mass job cuts and a decline in working standards.
The Federation draws attention to a paradox: rules that were meant to improve workers' security may in practice lead to collective redundancies. Companies that cannot maintain their current number of contractors on employment contracts because of higher employment costs are opting for redundancies instead of converting contracts.
The FPP has long proposed an alternative solution - introducing full social insurance contributions on contracts of mandate (umowa zlecenie). In the organisation's view, such a model would achieve two goals at once: it would give workers genuine social protection (pension, disability and sickness contributions) and, at the same time, level the playing field between companies using different forms of employment. The Federation accuses the government of having ignored the voice of business and of choosing regulations that excessively restrict economic freedom.
What should employers do? Practical tips
Whichever side of the dispute you take, the new rules are a fact and business owners must adapt to them. Failing to act could mean not only severe financial penalties but also months of inspection and court proceedings that tie up the company's resources.
Here are the key steps worth taking now:
- Contract audit - a review of all existing civil-law contracts and B2B contracts for features of an employment relationship (fixed place and hours of work, subordination, periodic remuneration).
- Legal risk assessment - identifying contracts that could be challenged by PIP inspectors and estimating the potential costs of conversion or penalties.
- Preparing documentation - gathering evidence confirming the real nature of the cooperation (the contractor's independence, absence of subordination, flexibility in performing tasks).
- Inspection strategy - drawing up a procedure for what to do if a PIP inspector visits, including appointing the people responsible for liaising with the inspectorate.
- Legal consultation - using the help of a law firm specialising in employment law to assess the company's individual situation.
The FPP warns that the current situation is only the beginning and that other sectors - especially those based on flexible forms of cooperation, such as IT, transport, logistics and courier services - will soon feel similar effects. A proactive approach to compliance with the new rules is therefore not so much recommended as essential.
Do you need legal support? Contact us
The reform of PIP's powers is one of the most important changes to Polish employment law in recent years. The new rules on converting civil-law and B2B contracts into employment contracts require business owners to react immediately. Penalties of up to PLN 90,000, a growing number of employee complaints and intensive labour inspections create an environment in which professional legal support becomes a necessity.
If you run a business and work with individuals on civil-law contracts or B2B contracts, do not wait for a PIP inspection. Contact our firm today - we will help you carry out a contract audit, assess the legal risk and prepare an effective strategy to protect your business. Act now, before the inspector knocks on your door.
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