For years, a B2B contract was a convenient solution for companies employing foreign nationals — it reduced formalities and costs, and the risk that such a contract might one day be reclassified as an employment relationship felt remote, since it required a lengthy court process. This state of affairs came to an end on 8 July 2026, when the Act of 11 March 2026 amending the Act on the National Labour Inspectorate entered into force. For employers “employing” foreign nationals on a B2B basis, this means a risk that extends beyond labour law alone — it also affects the very basis on which the foreign national legally resides and works in Poland.
What exactly changed in PIP’s powers as of July 2026?
Until 8 July 2026, a labour inspector who found, during an inspection, that a B2B or mandate arrangement in fact bore the features of an employment relationship could only refer the matter to the labour court. The case could drag on for years, giving the employer time to put its situation in order. The new provisions reverse this dynamic.
The procedure is now two-staged. If, during an inspection, the inspector concludes that a given person performs work under conditions typical of an employment relationship — that is, under the conditions set out in Article 22 of the Labour Code: personally, under the direction of the party commissioning the work, at a place and time set by that party, and for remuneration — they will first issue the business an order to remove the identified irregularities. Only if the company fails to comply may the inspector conducting the inspection apply to the regional labour inspector for an administrative decision establishing that the relationship between the parties is, in fact, an employment relationship. The key change is that the assessment is based on the actual conditions under which the work is performed, not on the name given to the contract on paper — the mere fact that a foreign national runs their own business and issues invoices decides nothing automatically.
The employer may appeal against the decision issued, but it is now the employer who must actively defend its position — rather than, as before, calmly awaiting the outcome of a years-long court process while enjoying certainty as to the status of the cooperation in the meantime.
Why is this change particularly significant when employing foreign nationals?
For workers from abroad, the right to reside and work in Poland is usually closely tied to a specific basis of employment. A non-EU foreign national working for a Polish company on a B2B basis will, in most cases, legalise their stay and business activity through an entirely different route than the one they would follow if employed under an employment contract. Under a B2B arrangement, this is done on the basis of a temporary residence permit linked to running a business. “On-the-books” employment, by contrast, usually requires a work permit (or a single permit for residence and work) issued for a specific employer, a specific position, and specific conditions.
If a PIP inspector challenges a B2B contract and issues a decision converting it into an employment contract, a gap opens up between the new, “employment-based” basis of the relationship and the document that legalised the foreign national’s stay under an entirely different regime. In practice, this creates an urgent need to apply for a new work permit or to update the existing document — before the provincial office (urząd wojewódzki) or the Border Guard concludes that the foreign national is, in fact, performing work without the required permit. The risk is all the greater because proceedings for a work permit or temporary residence permit can take months, while a PIP decision takes effect immediately — creating a real time gap during which the foreign national’s status is uncertain.
It is worth noting that the scale of the problem varies depending on the worker’s nationality. EU citizens benefit from the free movement of workers and do not need a separate work permit, so reclassifying their contract mainly affects them on the tax and social-security side. The position is different for nationals of non-EU countries (including the large group of Ukrainian nationals working in Poland through their own business activity) — here, reclassifying the contract can directly undermine the legality of the person’s stay or work itself.
What does a business risk if PIP reclassifies a foreign national’s B2B contract?
The consequences of such a decision are felt on several fronts at once:
So what should you pay attention to now?
The starting point should be a thorough review of whether the actual terms of cooperation with foreign nationals engaged on a B2B basis genuinely correspond to that model. What matters is the contractor’s real, genuine independence — no fixed working hours imposed by the party commissioning the work, no fixed place of work designated by the company, the ability to provide services to other entities as well, invoicing for results (the outcome of the work) rather than for time worked (no pay “for availability”), and bearing one’s own business risk (e.g. liability for defects in the services performed). The more features typical of an employment relationship there are — subordination, fixed hours, no freedom to organise one’s own work, exclusivity towards a single client — the greater the risk of reclassification.
Equally important is checking the consistency between the wording of the B2B contract and the content of the work permit or other document legalising the employment — discrepancies in the description of the position, the scope of duties, or the nature of the cooperation can, on their own, attract an inspector’s attention. It is also worth preparing in advance documentation that will, in the event of an inspection, confirm the real nature of the cooperation: contracts, invoices, correspondence relating to the organisation of the work, and, ideally, an internal policy describing the rules governing cooperation with B2B contractors.
Where doubts arise following such an analysis, it is worth considering a voluntary change of the basis of employment to an employment contract, together with the parallel filing of an application for the appropriate work or residence permit — before the inspector does so on the employer’s behalf, under time pressure and without the ability to plan the whole process calmly.
An employment contract is one of the basic forms of employment in Poland. What distinguishes it from other “employment contracts” (e.g., commission contracts or B2B contracts) is that it is subject to the regulations contained in the Labor Code regarding the rights and obligations of the employee and the employer. So what are the characteristics of a contractual employment relationship?
For years, civil-law contracts were a safe alternative to an employment contract. Even if a labour inspector noticed during an inspection that a working relationship looked, in practice, like ordinary employment, the most they could do was refer the case to court. The process could take years, giving the company time to find the best way to resolve the situation. This state of affairs came to an end on 8 July 2026, when the Act of 11 March 2026 amending the Act on the National Labour Inspectorate entered into force. As of that date, it is the employer who must defend itself against an administrative decision that the inspector can issue on their own, converting a contract of mandate or a B2B contract into an employment contract.
