What is the procedure for the National Labour Inspection (PIP) to issue a decision confirming the existence of an employment relationship, and what are the consequences of such a decision?
Amendments to the Act on the National Labour Inspection – Part II
What will the procedure look like?
1. PIP inspection
The PIP may, on its own initiative or following a complaint (usually from an employee), initiate an inspection carried out by a labour inspector. If the inspector considers that the working arrangement exhibits the characteristics of an employment relationship, they may issue a post-inspection order. The parties will be given the opportunity to amend the terms of their working arrangement themselves.
2. Administrative decision
If the employer fails to comply with the instruction, the district labour inspector may initiate proceedings to establish the existence of an employment relationship. The proceedings may be concluded by the issuance of a decision confirming the existence of an employment relationship, which will specify: the parties to the employment contract, the type of contract, the date of conclusion, the place of work, the working hours and the amount of remuneration.
As part of the proceedings, the inspector may request the submission of documents or explanations from the employer, the contractor, or other individuals. The employer should bear in mind that they may, on their own initiative, present their position and evidence in support of their claims.
3. Appeal to the court
An appeal against the decision may be filed with the labour court within 30 days via the regional labour inspector. Ultimately, therefore, even following the amendment, it is the court that will remain the body responsible for reviewing the decision of the National Labour Inspection (PIP).
What was the situation prior to the amendment?
Until 8 July 2026, the PIP does not have the power to independently determine the existence of an employment relationship.
If an inspector considered that a civil-law contract had been applied incorrectly, they could:
- issue a non-binding instruction to the employer to amend the contract (this option will remain available even after the legislative changes),
- bring an action before the labour court.
However, a determination that an employment contract was in place could only be made on the basis of a court judgement.
When does an employer face the consequences of a decision by the National Labour Inspection (PIP)?
The new regulations do not provide for a decision confirming the existence of an employment relationship to be immediately enforceable upon its issuance, as this measure was ultimately dropped during the legislative process.
However, a decision may be made effective immediately in the case of persons enjoying special protection against dismissal or termination of their employment contract.
Thus, as a general rule, enforcement in respect of the consequences:
- arising from the establishment of an employment relationship,
- relating to obligations concerning tax, social security, health insurance and compulsory contributions to the fund,
will be enforceable from the day following the expiry deadline for filing an appeal, provided that neither party has appealed, or from the date of a final court ruling, or from the date on which the decision is declared immediately enforceable.
Furthermore, in court proceedings to determine the existence of an employment relationship and in proceedings concerning an appeal against a decision of the regional labour inspector, the court may grant protective measures. Such interim relief may consist of a provision that the contract between the parties may be amended, terminated or rescinded only in accordance with the rules set out in labour law, including those governing general and specific protection against the termination or rescission of an employment contract.
The fundamental principle – which was also only developed at a later stage of work on the draft amendments – is a solution whereby the effects of a decision are to be effective prospectively, rather than automatically covering the entire previous period of employment. It should be borne in mind, however, that the option of taking legal action to establish the existence of an employment relationship remains open. As part of such proceedings, the court may also establish the existence of an employment relationship retrospectively, i.e. from the date on which the parties entered into a civil-law relationship.
