The National Labour Inspectorate (PIP) Granted New Powers: What Does This Mean for Employers and Entities Engaging Workers under Civil Law Contracts?

The National Labour Inspectorate Granted New Powers. What Does This Mean for Employers and Businesses Engaging Individuals under Civil Law Contracts?

As of 8 July 2026, new legislation has entered into force significantly expanding the powers of the Polish National Labour Inspectorate (Państwowa Inspekcja Pracy – PIP). Its primary objective is to more effectively combat situations in which parties conclude civil law contracts despite the fact that the manner in which they are performed corresponds to the characteristics of an employment relationship.

The new regulations do not prohibit the use of B2B contracts or mandate contracts (umowy zlecenia). Their purpose is solely to eliminate cases in which such contractual arrangements are used improperly.

When Can a Civil Law Contract Be Challenged?

The legal nature of a contract is determined not by its title, but by the manner in which it is performed (see the Supreme Court’s decision of 17 March 2021, II PSK 67/21). Consequently, when assessing the nature of a contractual relationship, the National Labour Inspectorate will focus primarily on the actual conditions under which the work is performed rather than merely analysing the wording or title of the contract.

Accordingly, PIP will assess whether the actual performance of the work predominantly exhibits the characteristics of an employment relationship as defined in Article 22(1) of the Polish Labour Code, namely whether the individual:

• performs the work personally;
• works under the direction or supervision of another entity; and
• performs the work at a place and during working hours designated by the entity assigning the tasks.

If these conditions are met, the appropriate legal basis for the relationship may be an employment contract.

It should be noted, however, that the mere designation of the place or time of performing work does not automatically determine that an employment relationship exists where such requirements result from the organisation or specific nature of the services provided (see the Supreme Court judgment of 11 May 2017, I PK 358/16). A contract will not be classified as an employment contract merely because it displays isolated characteristics of employment. Rather, what matters is whether the characteristics of an employment relationship prevail when the relationship is assessed as a whole (see the Supreme Court’s decision of 17 March 2021, II PSK 67/21).

Only where the characteristics of an employment relationship and those of a civil law contract are equally balanced may the parties’ mutual intention and the purpose of the agreement become decisive (see the Supreme Court’s decision of 4 April 2019, I PK 101/18).

What Will the Procedure for Establishing an Employment Relationship Look Like?

The National Labour Inspectorate retains the power to conduct both scheduled and ad hoc inspections, including inspections carried out without prior notice.

If, during an inspection, a labour inspector identifies irregularities concerning a civil law contract, the procedure will be as follows:

• first, the inspector will issue an order requiring the employer or engaging entity to remedy the irregularities within a specified deadline by either changing the contractual arrangement or modifying the manner in which the work is performed;
• only if the entity fails to comply with that order will the Regional Labour Inspector be authorised to issue an administrative decision confirming the existence of an employment relationship or bring legal proceedings seeking a judicial determination of the existence or content of the employment relationship.

Importantly, such a decision may be issued even where both parties consistently maintain that they are bound by a civil law contract. Both the engaging entity and the individual performing the work will have the right to appeal the decision before the labour court.

What Other Changes Are Relevant for Businesses Engaging Individuals under Civil Law Contracts?

The amendment extends beyond granting the National Labour Inspectorate the authority to issue administrative decisions establishing the existence of an employment relationship.

Employers and businesses engaging individuals under civil law contracts will now be able to request an individual legal interpretation from PIP. Based on the factual circumstances presented by the applicant, such an interpretation will allow them to verify whether their chosen form of engagement complies with Polish labour law.

In addition, the National Labour Inspectorate is now authorised to conduct remote inspections. Thanks to enhanced data sharing with the Social Insurance Institution (ZUS) and the National Revenue Administration (KAS), PIP will also be able to identify entities requiring inspection more effectively.

What Should Businesses Do Now?

The entry into force of the new regulations provides a good opportunity to review the forms of engagement currently used within an organisation.

In particular, businesses should verify whether:

• their standard civil law contract templates contain provisions characteristic of employment contracts;
• the actual manner in which B2B and mandate contracts are performed supports the chosen civil law model of cooperation and does not satisfy the criteria of an employment relationship under Article 22(1) of the Labour Code; and
• their internal documentation and procedures governing both employees and individuals engaged under civil law contracts comply with the current legal requirements.

Conducting an audit of civil law contractual arrangements may significantly reduce the risk of such contracts being challenged during a labour inspection.

How Can We Help?

The experts at Sadkowski and Partners assist businesses in mitigating the risks associated with inspections of civil law contractual arrangements.

Our services include:

• audits of contracts and engagement models;
• assessment of employment-related legal risks;
• review and adaptation of internal documentation and procedures to ensure compliance with applicable legislation;
• support in implementing best practices relating to civil law engagement models; and
• legal assistance during inspections conducted by the National Labour Inspectorate.