Poland's Labor Inspectors Reclassify Sham Contracts, Confirming 121 Employments Since Reform Launch

Poland's State Labor Inspectorate (PIP) has begun enforcing new regulations that empower labor inspectors to reclassify sham civil and business-to-business (B2B) contracts as formal employment agreements. The reform, which took effect on July 8, 2026, aims to tackle disguised employment and ensure workers receive proper labor rights.

Since the implementation of these new powers, PIP inspectors have been actively reviewing contracts. They have already issued 121 orders that confirm employment relationships, effectively converting what were previously considered independent contractor agreements into official employment contracts. This proactive approach signals a significant shift in how labor law is being enforced in Poland.

The reform targets arrangements where individuals are treated as employees in practice but are formally engaged under contracts that circumvent standard employment regulations. By granting inspectors the authority to make these reclassifications, the PIP seeks to protect workers from precarious employment conditions and ensure they benefit from statutory protections such as paid leave, social security contributions, and other employee rights.