What does this mean for employers and HR departments?
Amendments to the Act on the National Labour Inspection – Part I
The new regulations come into force on 8 July 2026.
From that date, key provisions of the amendment to the Act on the State Labour Inspection will come into force, affecting the use of service agreements, commission contracts and independent contractor agreements. The most significant change is the granting to the State Labour Inspection the power to issue administrative decisions establishing the existence of an employment relationship. Until now, such decisions could only be made by a labour court.
For employers, this means they will need to review their existing employment models and pay closer attention to how civil law contracts are carried out in future. In light of the changes being introduced, a real problem arises in situations where individuals formally working on a freelance basis under commission contract, service agreements or independent contractor agreements (so called B2B contracts) are carrying out work under conditions typical for employment relationships.
In practice, such a situation increases the risk of an inspection by the National Labour Inspection (PIP), which is equipped with new and, in all likelihood, more effective tools, and consequently leads to a greater number of disputes concerning the classification of employment status. A natural consequence of this is the potential tax and social security implications associated with a finding that an employment relationship exists.
How can employers reduce the risk?
Employers can carry out a comprehensive audit of their staffing arrangements, in particular:
- commission contracts / service contracts (as well as contracts for specific work), e.g. those performed within regular working hours or on the same terms as those employed under an employment contract,
- B2B contracts, e.g. carried out exclusively for a single entity with a fixed remuneration,
- where contractors are strictly subject to the instructions of their superiors, or in cases where the contract stipulates an obligation to perform the work in person without the possibility of being replaced,
- where contractors use the employer’s tools, infrastructure and work organisation rules, e.g. when work rosters, schedules and time-recording systems are applied to them in the same way as for employees.
It is important to bear in mind that simply adapting the content of contracts to the chosen type of employment is only the first recommended step, as the National Labour Inspection (PIP) will primarily verify the actual manner in which the work is carried out by the person employed or the contractor, rather than merely the formal provisions of the contract. For this reason, the actual conduct of the employer and the person employed under a civil law contract must be reviewed and, where necessary, modified accordingly, whilst bearing in mind that the assessment of which type of contract is involved will, in many cases, not lead to an unambiguous conclusion.
What do the new powers of the National Labour Inspection (PIP) include?
Under the amendment, a regional labour inspector is authorised to issue an administrative decision confirming the existence of an employment relationship.
If, during an inspection, the inspector concludes that the work is in fact being carried out under conditions corresponding to an employment relationship, they will be able to secure formal recognition of a person employed under a civil law contract as an employee.
At the same time, the PIP may continue to exercise its existing powers, including: conducting inspections, ordering the rectification of breaches, issuing post-inspection reports, submitting requests for penalties, or bringing proceedings before the labour court to establish the existence of an employment relationship.
