Government Proposal for Employment Relationship Classification
On Tuesday, government spokesman Adam Szłapka announced that the Polish Cabinet has approved a proposal aimed at allowing inspectors to classify a worker as being in an employment relationship, even if they are hired under civil-law contracts or operate as sole proprietors in a B2B arrangement. This measure aims to facilitate a transition to formal employment contracts.
Current Use of Civil-Law Contracts in Poland
Civil-law contracts are prevalent in Poland, often providing flexibility and simpler accounting for tax purposes. However, these contracts typically offer less job security and weaker protections compared to full employment contracts. Critics argue that individuals working as sole proprietors for a single client can be categorized as engaged in disguised employment, as their work often resembles a standard job.
EU Recovery Funding and Legislative Context
The government frames this new inspector authority as a “milestone” linked to EU recovery funding as part of Poland’s National Recovery Plan post-pandemic. This proposed legislation aligns with the implementation timetable of an EU directive, with Poland expected to complete this process by June 30.
Previous Revisions and Concerns
A prior version of this proposal, developed by the Ministry of Family, Labour and Social Policy, was rejected by Prime Minister Donald Tusk, who expressed concerns that excessive inspector powers could harm businesses and result in significant job losses. The revised draft introduces an enhanced appeals process while maintaining the core idea of the original proposal.
Details of the Appeals Process
In the revised proposal, appeals would be directed initially to a regional labour inspector and subsequently to a labour court. Notably, any inspector’s decision will be suspended until a final ruling is made, preventing immediate enforcement. The range of actions available to regional labour inspectors includes issuing corrective orders or confirming the existence of an employment relationship.
Resolution Options for Employers and Workers
The legislation provides avenues for employers and employees to amicably resolve disputes following an inspector’s decision. After an inspector rules, both parties could enter into an employment contract, potentially concluding the matter without further administrative actions. Alternatively, adjustments could be made to the civil-law arrangements to eliminate employment-like features, with follow-up assessments by the inspector.
Strengthened Protections and Ongoing Debate
The bill emphasizes protections against retaliation, stating that inspectors’ decisions should not be a basis for contract termination by employers. Additional provisions include improved data sharing among the Social Insurance Institution (ZUS), the State Labour Inspectorate (PIP), and the National Revenue Administration (KAS), remote inspections, and increased penalties for violations of workers’ rights. This reform has sparked debates, with various stakeholders expressing concerns over its implementation and potential implications for businesses and workers alike.
Significance of the Issue
The ongoing reform highlights a significant issue, with government data revealing that nearly 1.5 million people were employed solely under civil-law contracts by the end of Q2 2025—the highest recorded since statistics began tracking such data. The draft legislation will now proceed to the Sejm, Poland’s lower house of parliament, for further deliberation.
Poland’s New Proposal on Employment Contracts
In a recent development, the Polish government has introduced a proposal aimed at enhancing job security for workers employed under civil-law contracts and sole-proprietor arrangements. Government spokesperson Adam Szłapka announced that the Cabinet has agreed to empower inspectors to determine whether a worker is engaged in a genuine employment relationship. This proposal could prompt a transition from civil-law contracts to formal employment contracts.
The Current Landscape of Employment Contracts
Civil-law contracts have gained popularity in Poland due to their flexibility and simplified accounting processes, particularly concerning tax obligations. However, they offer significantly weaker job protections compared to traditional employment contracts. Critics argue that such arrangements can lead to disguised employment when individuals are effectively performing regular job duties for a single client.
Aiming for EU Compliance
The government’s proposal has been framed as a key aspect of Poland’s commitment to EU recovery funding as outlined in the National Recovery Plan, developed in response to the COVID-19 pandemic. The bill is also in line with the implementation timeline for an EU directive, with a deadline set for June 30.
The Appeals Process and Inspector Powers
The revised draft includes a strengthened appeals process aimed at mitigating concerns about the potential negative impact of the reforms on business operations. Should an inspector find irregularities, workers and employers will have the opportunity to appeal decisions first to a regional labour inspector and subsequently to a labour court. Until a final ruling is made, the inspector’s decision would be suspended, preventing immediate enforcement.
Resolution Options for Employers and Workers
Under this proposal, various remedies are available if irregularities are identified. For instance, employers and workers may choose to enter into an employment contract following an inspector’s decision, concluding the matter without further action. Alternatively, they might adjust existing contracts to remove employment-like features, which would then be subject to the inspector’s evaluation.
Stronger Protections and Data Sharing Initiatives
The draft legislation further includes provisions aimed at protecting workers from retaliation. An inspector’s ruling cannot be used by an employer as grounds for terminating a contract. Additionally, the bill promotes data sharing among crucial organizations, such as the Social Insurance Institution (ZUS) and the State Labour Inspectorate (PIP), and introduces mechanisms for remote inspections. Notably, it also proposes stiffer penalties for violations against workers’ rights.
Debate and Next Steps
The proposal has sparked considerable debate among stakeholders. Business representatives express concerns about the implications of potential reclassification, while union leaders emphasize the prolonged nature of dispute resolutions, as courts already assess the legality of employment contracts. The Ministry of Family, Labour and Social Policy has reported that, as of 2025, nearly 1.5 million individuals in Poland were working solely under civil-law contracts—marking a record high.
The draft legislation is now set to advance to the Sejm, Poland’s lower house of parliament, for further consideration and debate.
