New powers of the National Labor Inspectorate from 2026

From January 1, 2026, the powers of the National Labor Inspectorate (PIP) will be significantly expanded. Inspectors will be able to independently convert civil law contracts into employment contracts by administrative decision, without the need to initiate court proceedings.

What does this mean for employers and how to prepare?

The draft amendment to the PIP Act is currently in the review phase, but its direction seems to be decided: greater control powers and faster enforcement of labour law.

The new regulations are intended to allow labour inspectors to determine the existence of an employment relationship if, in fact, the cooperation in question meets the requirements of Article 22 §1 of the Labour Code – i.e. when an individual performs work of a specific type under supervision, at a specific place and time, for remuneration.

The PIP decision will be immediately enforceable, which means that even in the event of an appeal:

employee consequences will arise from the date the decision is issued,

the employer will be obliged to fulfil insurance and tax obligations,

the financial risk will appear immediately – before the court has time to assess the validity of the decision.

What risks does the employer face?

In practice, the new PIP rights may mean for employers:

costly tax and ZUS corrections – payment of overdue contributions, PIT, as well as interest,

employee claims – including holidays, overtime, severance pay,

financial sanctions for violation of labour law,

difficulties in a flexible employment model, e.g. in B2B cooperation,

litigation in situations where inspectors’ decisions are challenged.

For many organizations, this may mean serious budgetary and image consequences, especially if the scale of cooperation based on civil law contracts is large.

B2B contracts – what is worth doing today?

It is worth using the time until 1 January 2026 to organize cooperation models and reduce the risk of contracts being questioned.

Key activities include:

Review of applicable civil law contracts (contracts of mandate, contracts for specific work, B2B) in terms of the characteristics of the employment relationship,

Assessment of the practice of executing contracts – whether the manner of cooperation does not actually indicate subordination,

Modification of contract provisions and cooperation principles to clearly distinguish between the civil nature and the employment relationship,

Preparation of internal procedures and training for people managing teams or contractors.

New PIP entitlements – how can we help?

The TGC Corporate Lawyers and Crowe team supports employers in preparing for change by:

audit of civil law contracts – identification and assessment of the risk of recognizing them as an employment relationship,

legal and tax advice – preparation of recommendations regarding the content of contracts and cooperation practices,

preparing the organization for PIP inspections – including procedures, documentation and internal communication,

advice on various employment models – tailored to business needs and industry.

Contact our expert

What is the difference between an employment contract and a B2B contract?

The fundamental difference concerns the nature of the dependence and responsibility of the parties.

An employment contract assumes subordination – the employee performs tasks under the employer’s direction, at a designated time and place, using tools provided by the company. The employer is responsible for organizing the work and pays remuneration regardless of results.

A B2B contract is a business cooperation – a person running a business operates independently, bears the economic risk, decides on the time and place of work, may provide services to many clients and is responsible for the results of his or her work.

If a B2B contract in practice resembles an employment relationship, e.g. fixed hours, supervision by a supervisor, work at the company’s headquarters, no risk on the part of the contractor, the National Labor Inspectorate may recognize such a relationship as employee employment and convert it into a full-time job.

Checklist for employers – are your B2B contracts secure?

Does every civil law contract have a clearly defined scope of services, result and method of settlement?

Does the employee independently decide about the place, time and manner of performing work ?

Is he/she not subject to ongoing management, evaluations or instructions from superiors typical of an employment relationship?

Is the remuneration dependent on the effect or number of services provided , and not on attendance?

Does the associate have the ability to provide services to other clients and does he or she actually use this opportunity?

Does the company have documentation confirming the civil nature of the cooperation (reports, invoices, correspondence, contract)?

Does the collaborator have his/her own work tools (computer, telephone, software, licenses)?

Does the contract clearly state that the contractor bears the economic risk (e.g. liability for errors, material costs)?

Does the contract include provisions on independent organization of work and responsibility for the result?

Do managers in the organization understand the difference between B2B and an employment relationship and are able to enforce it in practice?

Does the company periodically audit civil law contracts and update their content in accordance with applicable regulations?

If the answer to any of the questions is “no”, it is worth considering an audit and correction of the rules of cooperation.

Ask about a contract audit

B2B contract and employment contract – employers’ most frequently asked questions

1. When can a B2B contract be considered an employment relationship?

2. Can the National Labour Inspectorate (PIP) convert a B2B contract into a full-time job without court approval?

3. What are the risks to the company after the contract is converted?

4. How can I check if my B2B contracts are secure?

5. Can the B2B model be maintained after 2026?

Do you need support with employee contracts?

We support employers in preparing for upcoming changes.

We provide:

audit of civil law contracts and risk identification,

recommendations for changes in contracts and cooperation models.