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From the beginning of 2026, the National Labour Inspectorate will gain powers significantly changing employment market realities. The most important is issuing administrative decisions converting civil-law contracts into employment contracts. Today, establishing an employment relationship is possible only through court proceedings, which can be time-consuming and often fail. After the changes, inspectors will act independently and their decisions will be immediately enforceable regarding rights under the Labour Code.
An employer disagreeing with the inspector may appeal to a labour court, but the appeal will not suspend employment-law effects. The person hired will immediately become an employee with full rights to leave, overtime allowances and working-time protection. Tax and contribution effects will be suspended until the appeal is considered, but reclassification itself will be immediate.
Higher penalties for breaking employment law
The reform's second pillar is higher financial penalties. The maximum court fine for employment-law breaches will increase from PLN 30,000 to PLN 60,000. Inspectors' fines will also be used more frequently and more severely, although the maximum will remain PLN 5,000.
The new rules respond to growing unpaid wages and circumvention of the law through abuse of civil-law contracts. As the Chief Labour Inspector emphasises, the scale is alarming: unpaid salaries reached PLN 270 million in 2024, affecting more than 60,000 people.
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The reform also provides extensive information exchange between the National Labour Inspectorate, Social Insurance Institution and National Revenue Administration. Inspectors will access risk analyses and identify entities circumventing regulations. Inspections will be better targeted at companies with the greatest likelihood of abuse rather than those properly fulfilling obligations.
This is important because PIP could previously inspect only employers within the Labour Code's meaning. In practice, companies employing only mandate contractors remained beyond its reach. New tools will close these gaps.
Online inspections too
Another new solution is remote inspections. Inspectors may request electronic documents, conduct remote questioning and even inspect using webcams. This responds to pandemic experience, when some inspection activities had to take place remotely.
Businesses will not always need direct contact with inspectors, while the Inspectorate can act faster and more efficiently.
Stronger finances and staffing
New tasks require appropriate resources. The Inspectorate's 2026 budget is therefore expected to increase by about 10%, with several hundred new employees planned over the following two years. This should ensure it can actually exercise its new powers and respond more effectively to labour market abuses.
What does this mean for businesses?
The new regulations require greater caution with civil-law contracts. If a mandate or B2B contractor's work has the features of ordinary employment, such as a fixed place, subordination, schedules and personal performance obligations, there is a real risk PIP will recognise an employment relationship and convert the contract.
In practice, it is worth auditing employment arrangements now, organising documentation and aligning procedures with the Labour Code. Ignoring the changes may require immediate contract changes and lead to high fines and additional costs for overdue contributions.
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Summary
For business owners, this clearly signals that abusing civil-law contracts and neglecting employee obligations will become riskier than ever. The best solution is to prepare early: organise processes, review contracts and align practices with applicable standards.
If you want confidence that your company is prepared and avoids costly employee settlement errors, use TaxCoach HR and Payroll services. Our specialists handle employee documentation, payroll, settlements and institutional obligations so you can focus on running your business calmly and safely.
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