Will the draft act change the classification of B2B contracts to employment contracts?
The Polish government is processing a draft bill giving the State Labour Inspectorate (PIP) new powers to reclassify B2B arrangements into employment contracts.
Such decisions would be immediately enforceable and subject to a 7-day appeal period.
Employers may face retroactive obligations for holiday and overtime up to three years back, liability for ZUS and PIT arrears, and loss of VAT deductions, with payments required upfront even if later challenged.
What are the risks for contractors?
Contractors risk losing independence, tax benefits, and may need to pay additional PIT under the employee tax scale.
The draft rules apply to both new and existing contracts, with PIP assessing the real conditions of cooperation.
How to prepare your company for regulatory changes? Key actions
To prepare, businesses should audit contracts, adapt documentation and practices to emphasise independence, develop a business justification for B2B use, and be ready to respond quickly to inspections. Businesses should not wait.
The Employment Team at Dudkowiak & Putyra is ready to assist with compliance audits, contract adjustments, and strategic preparation. Don’t wait- contact our team of experts!
FAQ – Practical Guide for Employers & Contractors
1. Can PIP really reclassify my B2B contracts into employment?
Yes. Under the draft law, PIP would gain the authority to issue binding administrative decisions reclassifying cooperation models.
2. How much time do I have to challenge such a decision?
Only 7 days. The decision takes immediate effect, which means liabilities must be settled upfront.
3. Will the new rules apply to contracts already signed?
Yes. The draft law explicitly allows reclassification of ongoing B2B and civil law contracts.
4. What financial risks do employers face?
Retroactive settlement of holiday, overtime, and other benefits for up to 3 years, plus arrears in ZUS, health insurance, PIT, and potential VAT adjustments.
5. What about contractors?
They risk losing business tax benefits, the ability to deduct expenses, and flexibility in working arrangements.
6. What indicators increase the risk of reclassification?
- Fixed working hours,
- Remuneration for time worked (not results),
- Lack of subcontracting possibility,
- Work under employer-like supervision.
7. What can I do now to prepare?
- Audit your contracts and practices,
- Adjust documentation for independence and task-focus,
- Create internal policies to justify contracting models,
- Prepare legal safeguards in case of inspection.
8. How can Dudkowiak & Putyra support my business?
Our Employment Department assists in:
- reviewing and adjusting contracts,
- aligning internal practices with law,
- preparing compliance frameworks and audit strategies,
- representing clients in proceedings before PIP and courts.
