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New PIP powers from January? What does this mean for employers?
Last week, the Government Legislation Centre published a draft bill amending the Act on the National Labour Inspectorate and certain other acts, which provides, among other things, for a significant extension of the powers of the National Labour Inspectorate (PIP).
The amendment to the regulations provides that the PIP will have the right to issue administrative decisions transforming a civil law contract into an employment contract. In practice, this means that PIP inspectors will be able to challenge, for example, a contract of mandate or a B2B contract and decide that it is, in fact, an employment contract. Parties dissatisfied with such a decision, i.e. the employee or employer, will be able to appeal to the court.
Other revolutionary changes proposed by the legislator include a twofold increase in the amount of fines that PIP may impose on employers for violations of employee rights, e.g. for concluding a contract of mandate instead of an employment contract or terminating an employment contract in violation of labour law. Currently, the maximum amount of such a fine is PLN 30,000, and after the amendment it will be as much as PLN 60,000.
According to the draft, the regulations are to come into force at the beginning of 2026, so it is worth preparing for the changes now. We recommend reviewing internal documents and contract templates for provisions that may be challenged by PIP inspectors.
If you need assistance or have any questions about these changes, please do not hesitate to contact us.
If you require assistance or have any questions regarding these changes, please do not hesitate to contact us.
The full text of the draft bill is available at: