Direct contact to law firm
Berlin +49 30 88 03 59 0
Poznań / Warszawa +48 61 85 82 55 0
Berlin berlin@vonzanthier.com
Poznań / Warszawa poznan@vonzanthier.com
VON ZANTHIER & DACHOWSKI
Current articles
 

Labour law and HR Will the National Labour Inspectorate (PIP) Gain the Power to Determine Employment Relationships? A Legislative Proposal Worth Watching – Planned to Enter into Force in January

Work is underway on a draft law that would grant the Polish National Labour Inspectorate (Państwowa Inspekcja Pracy – PIP) significantly expanded powers — including the ability to independently determine whether an employment relationship exists. According to the proposal, the new rules could take effect as early as January next year.

What does the draft law propose?

Under the current proposal, after completing an inspection, a PIP inspector would be able to:

  • issue a compliance order to be carried out within 14 days,
  • file a claim with the Labour Court, or
  • ❗ issue an administrative decision establishing an employment relationship, which would immediately produce legal effects.

This last competence is considered the most far-reaching. The decision would become binding upon delivery, even if the employer appeals.

Immediate consequences for employers

Once the decision is delivered, the employer would be required to treat the individual as an employee, including:

  • registering them with the social security authority (ZUS),
  • keeping personnel files,
  • calculating leave and remuneration,
  • applying all obligations under labour law.

Importantly, an appeal could be filed only afterwards, but the employer would still have to fulfil all obligations immediately, regardless of the future outcome of the case.

Compensation from the State Treasury? In practice, difficult to obtain

Employers would be able to seek compensation from the State Treasury if the PIP decision is found unlawful.

However, in practice, this may be challenging because:

  • the law does not provide for full compensation,
  • proving the extent of the damage would be complex,
  • compensation proceedings may take many years.

Therefore, the real prospects of obtaining meaningful compensation are limited.

How should organisations prepare? Key recommendations

Given the potential impact of the reform, businesses should consider taking steps now:

1. Monitor the legislative process closely

The draft may still be amended, but the direction is clear. We will continue to provide updates.

2. Review B2B contracts and civil-law agreements (e.g., service contracts)

Particularly concerning the risk of reclassification into an employment relationship.

3. Identify areas of risk

If your organisation relies on cooperation models that could be challenged by PIP, it is advisable to:

  • review sensitive contractual clauses,
  • organise and update documentation,
  • prepare internal processes for potential inspections.

4. Implement a procedure for PIP inspections

Including rules for communication, documentation handling, and dealing with inspectors.

5. Consider a compliance audit

This can help verify whether your current cooperation models comply with legal requirements and identify any necessary corrections.

Share this article

You may also be interested in these articles:

current, Corporate law, Company law, company formation, restructuring
01.04.2026

Setting up a Polish LLC with foreign shareholders and directors

Poland is an attractive destination for international entrepreneurs. The incorporation of a limited liability company by a foreign corporate entity, or the appointment of foreign managing directors, is legally permissible and common practice. Nevertheless, specific formal and legal requirements apply, which should be taken into account at an early stage. Dennoch gelten besondere formale und rechtliche Anforderungen, die frühzeitig berücksichtigt werden sollten.

Read article
current, Investments in renewable energies
30.03.2026

Redispatching of renewable energy sources in Poland – between system security and the rights of generators

Non-market redispatching of energy from renewable sources has become one of the key challenges facing the Polish energy sector, reducing the profitability of investments and generating measurable losses for generators. This phenomenon – relatively new and associated with the dynamic growth of installed capacity – has prompted the President of the Office of Competition and Consumer Protection (UOKiK) to support efforts to regulate the principles governing its application to ensure a level playing field, whilst simultaneously requiring the modernisation and digitalisation of the grid for improved energy flow management.

Read article
current, Investment and commercial law
30.03.2026

A foreign managing director of a Polish limited liability company - registration and taxes without myths

An increasing number of Polish limited liability companies with foreign capital appoint foreign managing directors. In practice, this quickly raises questions about registration in Poland, tax residency and the risk of double taxation of a managing director’s remuneration – we explain what to pay attention to.

Read article