More than 70 cases on contract changes were still ongoing in Poland — Interia

In Poland, after new rules came into force allowing the State Labour Inspectorate to convert B2B contracts or contracts of mandate into employment contracts by administrative decision, the first disputes with employers emerged. As Interia reports, by the beginning of October inspectors had issued more than 600 orders to change contracts, 535 of which were carried out. More than 70 cases were still ongoing, including because of conflicts between the inspectorate and companies.

New powers for inspectors

From July 8, 2026, a district labour inspector may, by administrative decision, reclassify an improperly concluded civil-law contract as an employment contract if the actual terms of cooperation correspond to an employment relationship. Previously, an inspector could only apply to a court, and such proceedings could last for years.

The reform is aimed at combating fictitious contracts. According to Poland's Ministry of Finance, 160,000 people in the country work under fictitious B2B contracts. An employer who voluntarily replaces an improper civil-law contract with an employment contract within a year after the rules take effect may avoid financial liability. Otherwise, a fine of between 2,000 and 60,000 zlotys is предусмотрен, while before the changes the maximum amount was 30,000 zlotys.

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Possible court disputes

According to the publication, the greatest objections are expected from large companies that can hire major law firms. Employers fear the costs of paying overdue contributions to the Social Insurance Institution and taxes, which in some cases may reach millions of zlotys. The risk is particularly high if, during an inspection, the Social Insurance Institution determines that contributions should be paid for the previous five years.

In 2027, labour inspectorate employees will be able to use a risk analysis tool to select enterprises for inspections based on data from the inspectorate, the Social Insurance Institution and the tax administration.

Signs of an employment relationship

The inspectorate will check whether the contractor works under direct management and supervision, at a fixed location and according to a fixed schedule, whether they bear financial responsibility for the result of the work, and whether they can delegate tasks to subcontractors or arrange a replacement. If a person independently determines the time and place of work, is responsible for the result and uses their own equipment, there may be no grounds for reclassifying the contract.