Is This the End of B2B Contracts? President Signs New Law – IT Sector at Risk

Key facts

We have already written several times about the planned changes to the powers of the National Labour Inspectorate (Państwowa Inspekcja Pracy- PIP). The purpose of the proposed amendments was to grant PIP the authority to issue administrative decisions establishing the existence of an employment relationship between an employer and a person previously engaged under a civil law contract (e.g. a B2B contract).

Particular controversy concerned provisions under which the inspector’s decision would be immediately enforceable with respect to consequences arising under labour law, tax regulations, social and health insurance, as well as mandatory fund contributions- from the moment it is served on the employer.

The planned changes were to enter into force on 1 January 2026. However, due to significant controversy and public criticism from businesses, this was postponed.

Nevertheless, following numerous consultations and opinions, on 2 April 2026 the President signed the Act of 11 March 2026 amending the Act on the National Labour Inspectorate and certain other acts, which:

• expands the powers of PIP, allowing inspectors to independently issue administrative decisions establishing the existence of an employment relationship, while the previous requirement of court proceedings will apply only if an appeal is filed;
• introduces remote inspections and enables fast access for PIP to ZUS and KAS systems, which will result in more frequent and more efficient inspections;
• imposes higher penalties on businesses for violations, including fines of up to PLN 5,000 and court-imposed fines of up to PLN 60,000, and may also lead to potential retroactive consequences, such as the obligation to pay outstanding contributions or employee benefits.

These changes are expected to result in a greater detection of irregularities, more frequent and less predictable inspections, higher penalties, and, above all, the reclassification of B2B contracts as employment contracts.

Importantly, a civil law contract may now be recognised as an employment contract by means of an administrative decision, rather than- as previously- only through lengthy court proceedings.

It should also be emphasised that, when assessing the nature of the relationship, the actual will of the parties will be of key importance- the legislator places greater emphasis on the real manner of cooperation than on the intention expressed in the contract.

What can businesses expect?

The Act provides for the digitalisation of inspections, including remote inspections and new IT solutions enabling inspectors to access data from the Social Insurance Institution (ZUS) and the National Revenue Administration (KAS).

In this way, inspectors will be able to detect irregularities not only during inspections or as a result of employee complaints, but also through payroll errors.

These new technical capabilities may result in more frequent inspections and faster actions by inspectors. This means that employers will have significantly less time to prepare for an inspection, and its effects will be felt much more quickly.

It should also be noted that the Act introduces higher financial penalties. PIP will be able to impose fines of up to PLN 5,000 (currently PLN 2,000), while the maximum fine that may be imposed by a court will be increased to PLN 60,000 (currently PLN 30,000).

Moreover, the Act allows inspections to be carried out without prior notice, which is intended to limit businesses’ ability to prepare in advance and to prevent temporary solutions during inspections. This means that businesses should already begin preparing for these changes by identifying and eliminating irregularities.

Is this the end of B2B contracts?

It appears that the expansion of the labour inspectorate’s powers and intensified inspections may reshape the Polish labour market and significantly reduce employers’ interest in civil law contracts- which was clearly one of the legislator’s objectives.

In our view, however, this does not mean that B2B contracts should be completely abandoned. It will, however, require greater preparation on the part of businesses– from proper documentation to the appropriate organisation of cooperation. If B2B cooperation reflects the actual will of the parties and meets the characteristics of a civil law relationship, the risk of establishing an employment relationship will be low.

However, this will require businesses to ensure:

• knowledge of the differences between B2B and employment contracts,
• the ability to make a proper decision on the form of engagement,
• the use of appropriate contract templates,
• proper organisation of internal processes.

In relation to contractors, it will be particularly important to limit features that may be considered characteristic of an employment relationship, such as working from the client’s office, fixed working hours, or the use of company equipment.

What about the IT sector?

There is no denying that these changes may be particularly significant for the IT sector, where B2B contracts are a common and leading form of engagement. The negative impact will be felt not only by employers, but also by contractors, who typically run their own businesses and also prefer B2B arrangements. However, during inspections, the labour inspectorate will take into account not only the parties’ declared will, but also the actual conditions in which the contract is performed.

The current working practices in the IT sector will have to change in order to maintain the possibility of engaging specialists on a B2B basis. The reality of work in the IT sector- such as the frequent use of company tools, working in the same office as employees, fixed daily working hours, broad non-compete obligations, and no possibility of subcontracting- creates a strong basis for recognising an employment relationship.

The nature of the IT sector means that businesses operating in this area will be particularly exposed to inspections. Therefore, IT employers should pay particular attention to the internal organisation of work and begin implementing changes now in order to differentiate cooperation with contractors and employees.

The President has signed the Act, but doubts remain

After numerous consultations with trade unions and employer organisations, the President ultimately decided to sign the Act.

At the same time, he indicated that he still has serious doubts regarding certain provisions and referred the Act to the Constitutional Tribunal for a subsequent review. These concerns mainly relate to the broad decision-making powers granted to PIP. The President emphasised that public authorities should not exceed the limits of their influence on economic activity. In an official statement published by the Chancellery of the President, it was stressed that the final decision should belong to an independent court, not to administrative authorities.

Regardless of these doubts, the President’s signature on 2 April 2026 means that the Act will enter into force 3 months after its publication in the Official Journal, except for certain provisions not related to the main subject of the amendment. This means that businesses have only until July to take the necessary steps.

How to prepare?

B2B contracts will not disappear. However, in light of the upcoming changes, they must reflect genuine, not merely apparent, cooperation, which requires particular caution when drafting agreements.

There are a number of actions that businesses can take already to prepare for inspections. We recommend auditing contracts and documentation, establishing a transparent internal structure, properly organising cooperation, and developing a decision-making process regarding forms of engagement.

Such actions may require the support of an employment law specialist. We encourage you to contact the employment law team at our firm at: [email protected] and to review our offering for businesses seeking to prepare for the upcoming changes. Our specialists have developed detailed guidance, requirements and recommendations aimed at minimising the risk of reclassification.