New bill extending the powers of the State Labour Inspectorate

At a glance

• On 12 March, the Senate approved a draft act extending the powers of the State Labour Inspectorate (PIP) to determine the existence of an employment relationship. The act is currently awaiting the signature of the President of the Republic of Poland.
• The new provisions are expected to enter into force three months after their publication.
• The core objective of the amendment is to grant PIP inspectors the authority to issue administrative decisions confirming the existence of an employment relationship.
• Inspectors will also hold be able to instruct an employer to remedy any identified irregularities.
• Another key change is the increase in the level of fines imposed by PIP and labour courts.

The planned amendment to the Act on the State Labour Inspectorate, adopted by the Senate on 12 March 2026 and now pending presidential signature, introduces substantial enhancements to PIP’s powers, including the ability to reclassify civil‑law contracts as employment contracts by way of an administrative decision. The procedure is intended to be two‑stage: first, the inspector will issue an order requiring the employer to eliminate the breach, and only if this order is not complied with may formal proceedings be initiated and a decision issued.

Such a decision will have a 'constitutive effect', meaning that the employment relationship will be deemed to arise as of the date of the decision. The decision may be appealed to the labour court within one month.

Another new feature is that employers can now request individual interpretations from the Chief Labour Inspector about how labour law applies to a specific situation, particularly in deciding if a described legal relationship qualifies as employment.

The amendment also increases the range of financial penalties, increasing the maximum fines that can be imposed by PIP or labour courts from PLN 1,000–30,000 to PLN 2,000–60,000. The act also introduces the option for PIP to conduct remote inspections in justified cases, as well as enabling labour courts to grant interim relief in proceedings aimed at establishing the existence of an employment relationship.

Employers will also benefit from a 12‑month transitional period, counted from the date the act enters into force.  This will allow employers to voluntarily conclude employment contracts with individuals who are in fact performing work under conditions characteristic of an employment relationship and who were engaged prior to the amendment. This is intended to mitigate the risk of potential sanctions.