On 2 April 2026, the President signed the Act of 11 March 2026 amending the Act on the National Labour Inspectorate – an amendment that may have direct consequences for your business. From now on, regional labour inspectors are empowered to determine the existence of an employment relationship by means of an administrative decision. This means that B2B and mandate contracts can be challenged more quickly and effectively than before – without the need for court proceedings.
 
Until now, the existence of an employment relationship could only be established through court proceedings. A labour inspector could bring an action or support a claim brought by an employee. Given the administrative and legal nature of the NLI’s expanded powers, the new regulations should, in principle, take effect much more quickly than rulings handed down in proceedings before the labour court. At the same time, the principle has been adopted whereby a decision by a regional labour inspector takes effect prospectively; consequently, court proceedings remain the only avenue for obtaining retroactive effects regarding the conversion of a civil-law relationship into an employment relationship.

Two stages leading to the determination of the existence of an employment relationship

The Act provides for two conditions for issuing a decision confirming the existence of an employment relationship. Firstly, where breaches concerning the operation of a civil law contract or the failure to conclude an employment contract are identified, after allowing the parties to the legal relationship to state their position, the labour inspector will issue an order to remedy them. Only failure to comply with the order will lead to the case being referred to the regional labour inspector, who will be authorised to initiate administrative proceedings leading to the issuance of a decision confirming the existence of an employment relationship. Secondly, the existence of an employment relationship may only be established if, under a given civil law contract, the person in question actually performs work for remuneration under conditions in which, pursuant to Article 22 § 1 of the Labour Code, an employment contract should have been concluded, i.e. on behalf of and under the direction of the employer, at a place and time designated by the employer.

Decision establishing the existence of an employment relationship, extended protection for the employee

A decision confirming the existence of an employment relationship should specify the parties, the type and date of conclusion of the employment contract, as well as the type of employment contract, the place of work, working hours and the amount of remuneration. The decision will also contain legal and factual grounds. If the existence of an employment relationship is confirmed, the date of the decision shall be deemed the date of conclusion of the employment contract. However, from the moment the inspection begins, the person performing work under a civil law contract shall be entitled to extended protection. If, during the inspection – until the expiry of the deadline for lodging an appeal or until the court’s decision becomes final – the civil law contract is terminated on the employer’s initiative, the date of the commencement of the inspection shall be deemed the date of conclusion of the employment contract.

Appeal against the decision to the labour court

Under the new regulations, an appeal against a decision by the regional labour inspector to convert a given contract into an employment contract must be lodged with the court via the regional labour inspector within one month of the date of service of the decision. If the district labour inspector has declared the decision immediately enforceable, it will be possible to lodge a complaint or a motion for its revocation. It is worth noting in passing that immediate enforceability, under the rules set out in Article 108 of the Code of Administrative Procedure, may only be granted in proceedings concerning decisions establishing the existence of an employment relationship for persons covered by special protection against dismissal or termination of their contract.

Individual interpretations – the possibility of verifying the legal relationship before initiating proceedings to establish the existence of an employment relationship

The amendment also introduces a mechanism whereby the Chief Labour Inspector issues individual interpretations regarding whether a given legal relationship constitutes an employment relationship. Applications for such interpretations may be submitted by, amongst others, the employer and the business for which services are provided or a contract is performed. These interpretations will be binding on the National Labour Inspectorate (PIP) in the context of potential inspections.

Doubled fines and a grace period for existing contracts

The amendment doubles the rates of fines that may be imposed for breaches of the Labour Code. However, entities which, prior to the date of entry into force of the Act, entered into a civil law contract with another person, even though the legal relationship met all the characteristics of an employment relationship, and which, within 12 months of the Act coming into force, voluntarily bring that legal relationship into compliance with the law by entering into an employment contract, will not be liable for offences against employees’ rights in this area.

Guidelines applied by the National Labour Inspectorate

In accordance with the amendment, the Chief Labour Inspector shall, by way of an order, specify the methods and standards for managing inspections within the National Labour Inspectorate. To ensure the greatest possible objectivity and consistency in the PIP’s activities regarding the determination of the existence of an employment relationship, these orders should contain guidelines setting out the criteria for assessing the facts in cases concerning the determination of an employment relationship.

Recommendations

The Act will, for the most part, come into force three months after its publication, and the 12-month grace period for existing civil law contracts should be counted from that date. In view of this, it is recommended that this time be used to audit cooperation models and adapt them, where necessary, to the new regulations. In cases where there are reasonable doubts as to the nature of a given legal relationship, it is worth considering applying to the Chief Labour Inspector for an individual interpretation – preferably before the expiry of the grace period. Furthermore, in the event of an inspection, it is advisable to prepare appropriate procedures and maintain documentation confirming that the legal relationship in question does not have the characteristics of an employment relationship.
 
Authors: Aleksandra Kubiś – Attorney-at-law at SKP Ślusarek Kubiak Pieczyk, Tymoteusz Kwidziński – Junior associate at SKP Ślusarek Kubiak Pieczyk.