Labour law and HR The new rules on the National Labour Inspectorate are now in force. Time for an audit before the inspector arrives.
New powers of the National Labour Inspectorate (PIP)
On 8 July 2026, the Act amending the Act on the National Labour Inspectorate (PIP) and certain other acts (Journal of Laws of 2026, item 473) will enter into force. What is particularly important, the new provisions have at the same time been referred to the Constitutional Tribunal in ex post review due to concerns about the broad scope of powers granted to the National Labour Inspectorate (hereinafter: NLI, Polish: PIP ).
Key changes to NLI powers
The far-reaching reform of the NLI introduces several new powers for the Labour Inspectorate:
- Reclassification of civil law contracts into employment contracts : The NLI has been given the power to issue administrative decisions declaring the existence of an employment relationship where, in its view, the cooperation between an organisation and a given individual (e.g., based on a mandate contract or a B2B contract) exhibits the characteristics of employment.
- Decision as a measure of last resort : Reclassifying a civil law contract by way of a unilateral NLI decision is only possible after both parties to the legal relationship (e.g. a mandate contract) have been heard and the company has failed to comply with a prior order issued by the NLI to remedy the violations. The decision will be legally binding from the date of its issuance, but it will only have to be implemented once the time limit for lodging an appeal has expired, provided that neither party files an appeal. The decision may become enforceable earlier if it is granted an immediate enforceability clause.
- Court actions initiated by the Labour Inspectorate: If the Labour Inspectorate intends to have the employment relationship established for a period preceding the date of its decision, this must be determined by a court. In such a case, the NLI initiates proceedings by filing a claim with the labour court seeking a declaration that an employment relationship exists.
- A new protective shield (NLI interpretations) : Entrepreneurs have gained the possibility to request the Chief Labour Inspector to issue a binding assessment of the legality of their employment model, which can significantly reduce the risk of future sanctions in this area.
Procedure and effects of the inspector’s decision
Where irregularities are identified, the inspector must first issue an order requiring the contract to be aligned with the law. It is only the failure to comply with this order – and the prior hearing of both parties – that opens the way to an administrative decision establishing the existence of an employment relationship.
From the moment such a decision becomes legally effective, the relationship between the parties is treated in all respects as a standard employment relationship: for labour law purposes, for tax purposes and for social and health insurance purposes. It should be noted, however, that any retroactive consequences may result solely from a final and binding judgment of a labour court, and not from the inspector’s decision itself.
The entrepreneur has the right to appeal against the inspector’s decision to a court within one month of the date on which the decision is served. The provisions also introduce protection for the other party to the legal relationship – an NLI decision may not constitute grounds for any unfavourable treatment of the worker and, in particular, may not be used as a reason for giving notice of termination of the employment relationship or for terminating it without notice by the employer.
Individual interpretations and close data exchange
A key novelty is the introduction of individual interpretations. An entrepreneur may apply to the NLI for an assessment of whether the employment model used in the company complies with the law. Acting in line with an issued interpretation shields the entrepreneur from sanctions. At the same time, the Act opens the door to extensive information exchange between the NLI, the Social Insurance Institution ( ZUS ) and the National Revenue Administration ( KAS ), enabling the authorities to identify and target for inspection entities with an elevated risk of violations much more effectively.
Stricter penalties and a transitional period
The amendment of the NLI’s powers drastically increases the level of fines. A fine imposed by an inspector in summary proceedings may now reach up to PLN 10,000. In turn, the maximum fine that a court may impose for offences against employee rights has risen to as much as PLN 90,000.
However, the legislator has provided for a 12-month transitional period. Entities that voluntarily reorganise their labour market relationships during this time (for example, by entering employment contracts) and bring them into line with the new requirements will avoid liability for past infringements.
Recommendations for employers
Businesses that rely on civil law contracts should promptly carry out an audit of their current engagement models. The key question is whether, in their relationship with the other party, elements typical of an employment relationship are present, such as factual subordination, a fixed place and time of work, or the personal performance of work.
The ongoing transitional period is a real opportunity to put these issues in order without exposing the business to severe sanctions.
Authors: Paula Staszak-Urbańska, Karol Kopaczewski
