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What does the President’s signature on 2 April this year on the Act of 11 March 2026 amending the National Labour Inspectorate Act and certain other acts mean for Polish entrepreneurs? We describe the main PIP reform provisions and how to prepare. There is little time: the amendment is to enter into force on 8 July this year!
The National Labour Inspectorate reform has returned and the President has already signed it
At the beginning of this year, our article “PIP reform suspended! What does it mean for entrepreneurs in 2026?” reported that the prime minister had suspended the reform. Criticism from entrepreneur organisations, particularly the Federation of Polish Entrepreneurs, was reportedly crucial.
A new reform model was therefore to be prepared without the most controversial provisions.
It turned out the wait was not long...
The revised bill reached the Sejm on 19 February, and on 2 April, after an express legislative process, President Karol Nawrocki signed it. At the same time, he referred it to the Constitutional Tribunal for subsequent review.
However, this move does not affect the effective date of the changes.
Since that date is close, 8 July this year, we again explain the main provisions of the long-planned PIP reform in its final form.
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What will the revised PIP Act change? Expanded inspector powers, including converting civil-law contracts into employment, remote inspections and individual rulings from the Chief Labour Inspector
The final act passed by the Sejm and signed by the President differs from the original proposal. It abandons the most controversial assumptions but retains expanded PIP inspector powers.
Inspectors will be able to issue administrative decisions establishing employment relationships, namely decisions converting civil-law contracts, including B2B, into employment contracts.
Under Article 34(2k), effective from 8 July 2026, these decisions become enforceable the day after the appeal deadline expires if neither party appeals, on a final court ruling, or when immediate enforceability is granted. There is therefore no automatic immediate enforceability for every decision or retroactive effect. The parties’ wishes can also be considered in the administrative proceedings.
Conversion decisions can be appealed to a labour court acting in a special expedited procedure.
The signed act also permits:
- remote PIP inspections;
- entrepreneurs to request individual rulings from the Chief Labour Inspector on whether a legal relationship meets employment contract conditions.
PIP reform will enter into force — what does it mean for entrepreneurs and how to prepare?
Entrepreneurs extensively using civil-law and B2B contracts must expect some may soon be converted into employment contracts under new inspector powers.
This risk requires preparation and can be estimated, usually also substantially reduced, by checking signed civil-law contracts and carefully analysing how they are performed. Particularly important are employment features such as subordination, personal performance and specified working time and place.
Where those features cannot be excluded, anticipate possible future conversions and related costs.
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Summary
The President has signed the PIP reform — what does the new PIP Act mean for entrepreneurs and employers?
The controversial PIP reform returned and, after completing the legislative process, was signed by President Karol Nawrocki.
It is therefore to enter into force on 8 July this year, principally bringing:
- Expanded inspector powers, particularly converting civil-law contracts into employment contracts;
- Remote PIP inspections;
- Individual rulings requested by entrepreneurs from the Chief Labour Inspector.
The changes are substantial and only two months away. Entrepreneurs should start preparing now by analysing the nature and performance of signed civil-law contracts.
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