Polish entrepreneurs get support for new labor inspection reform

Poland has introduced new regulations, effective July 8, 2026, that significantly bolster the powers of the State Labor Inspectorate (PIP). The reform aims to more effectively enforce existing labor laws by allowing labor inspectors to identify and declare an employment relationship, even when a civil law contract, such as a B2B or service agreement, is formally in place.

The core of the reform lies in its focus on the practical realities of work arrangements. While the definition of an employment relationship under Article 22 of the Labor Code remains unchanged, the PIP's enhanced authority means that the substance of the working relationship will be scrutinized. This requires businesses to look beyond the contractual wording and examine how cooperation actually functions on a day-to-day basis.

Key factors that inspectors will consider include the manner in which work is organized, the degree of subordination to an employer, the location and timing of task execution, how instructions are issued, and the level of autonomy afforded to the contractor. A contract that is meticulously drafted may not suffice if the daily practice deviates from its terms and resembles an employer-employee dynamic.

To assist businesses in navigating these changes, the Federation of Polish Entrepreneurs has launched a dedicated online service. This platform offers crucial information and guidance on the new regulations, helping companies verify their contracts and operational practices. The goal is to ensure that businesses can adapt to the stricter enforcement environment and avoid potential penalties associated with misclassified employment relationships.