A revolution at the National Labour Inspectorate - what changed on 8 July 2025?
On 8 July 2025, one of the most significant reforms in the history of Polish labour law came into force. The National Labour Inspectorate (PIP) was given a completely new tool - the power to issue administrative decisions confirming the existence of an employment relationship. This is a fundamental change that ends the era of lengthy court proceedings to determine whether a given civil-law contract or B2B arrangement is in reality an employment relationship.
Until now, a PIP inspector who suspected an employer of disguising an employment position as a contract of mandate or a B2B contract could only bring a claim before the labour court. Proceedings lasted months, and often years, which gave businesses a sense of relative security. The new administrative procedure drastically shortens this time - an inspector can now issue a binding decision independently.
Importantly, the substantive criteria remain unchanged. Article 22 of the Labour Code still applies, defining the elements of an employment relationship: performing work of a specified type, under the employer's direction, at a place and time set by the employer, in return for remuneration. The change concerns only the way these rules are enforced - but it is precisely this mechanism that determines the scale of risk for businesses.
Both the employer and the person engaged may appeal against the inspector's decision to the labour court, and lodging an appeal suspends enforcement of the decision until a final judgment is issued. However, this does not alter the fact that the mere prospect of a swift administrative decision fundamentally changes the dynamic between companies and the inspection authorities.
The Pyszne.pl case - the first test of the new rules
Just a few days after the reform came into force, the public was shaken by news of the plans of Takeaway Express Poland, the operator of the Pyszne.pl platform. The company announced the dismissal of around 5,000 couriers by the end of August 2025. Those dismissed are to be offered continued cooperation, but through external fleet partners - the so-called 3PL (Third-Party Logistics) model.
Trade unionists from the OPZZ Confederation of Labour warn that the new model means a dramatic deterioration in conditions. Until now, Pyszne.pl couriers worked under contracts of mandate with a guaranteed minimum hourly rate and Social Insurance Institution (ZUS) contributions paid. Under the new model, they are to be paid only for completed deliveries, which in practice may mean earnings below the minimum wage.
The company firmly denies that the reorganisation is a reaction to a PIP inspection or the new rules, claiming that preparations had been under way for a long time. Whatever Pyszne.pl's motivation, the case has become the first high-profile test of the inspectorate's new powers. Minister Agnieszka Dziemianowicz-Bąk publicly stated that the ongoing inspection should take into account PIP's new legal possibilities.
Financial and legal consequences for employers
Reclassifying a civil-law contract or B2B contract as an employment contract is not merely a formality. Such a decision brings a range of costly consequences that could destabilise the finances of many companies. The main risks are as follows:
- Unpaid ZUS contributions - the employer may be required to pay contributions for the entire period of actual employment, together with interest.
- Payment of employee benefits - annual leave, overtime pay, cash equivalents and other entitlements arising under the Labour Code.
- Collective redundancy rules - if an inspection finds that employment relationships exist, the act on special rules for terminating employment relationships will apply, meaning an obligation to consult trade unions and pay severance.
- Integrated data exchange - PIP has gained direct access to the databases of ZUS and the National Revenue Administration (KAS), meaning that every reclassification decision automatically triggers interest from other institutions.
- Risk of retrospective inspections - although the government dropped the provisions giving PIP decisions retroactive effect, businesses fear that inspection findings may become the basis for ZUS and the tax authorities to review filings from previous years.
As Robert Lisicki of the Lewiatan Confederation stresses, employers expect the new rules to be applied consistently and predictably. Without clear guidelines, there is a risk of arbitrary decisions by individual inspectors, which further increases legal uncertainty in running a business.
The Platform Work Directive - the next wave of change on the horizon
The PIP reform is not the only change Polish businesses must prepare for. On the horizon is the EU Platform Work Directive, adopted by the EU in 2024, which Poland must transpose by December 2026. The directive is intended to regulate the situation of people working through digital platforms - such as Pyszne.pl, Glovo, Uber or Bolt.
The draft act implementing the EU rules is already prepared and is soon to go to public consultation. Crucially, the new regulations are to protect not only couriers employed directly by platforms, but also people working with fleet partners - exactly the model Pyszne.pl is moving to.
This means that a strategy of moving employment to external entities may prove to be only a temporary solution. Companies that are restructuring today to avoid the consequences of the PIP reform may, in a year or so, face the need for further, even deeper changes.
How to protect your business in the new legal environment
The new legal environment requires businesses to take a proactive approach to risk management. Simply waiting to see how events unfold may prove an extremely costly strategy. The key steps worth considering now are, above all, an audit of the contracts you use for compliance with Article 22 of the Labour Code.
One effective tool for protecting assets is diversifying the organisational structure by setting up a holding company. Separating the company's assets from the entity that employs staff helps limit financial risk in the event of unfavourable administrative decisions. This is a solution successfully used by well-advised businesses around the world.
Preparing for possible PIP inspections is equally important. Companies should ensure proper documentation of their cooperation with contractors, a clear definition of the scope of their collaborators' independence, and the elimination of elements indicating the subordination characteristic of an employment relationship.
Don't wait for an inspection - act preventively. Contact our firm to carry out a legal audit of your business, optimise your employment structure and effectively safeguard your company's assets against the consequences of the new rules. Book a consultation today.
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