Reform of the National Labour Inspectorate – Second Legislative Attempt

New Draft of the PIP Act – What Is Changing?

The revised proposal softens some of the most controversial elements of the original draft. In particular, it includes:

• a departure from the immediate enforceability of decisions reclassifying civil law contracts as employment relationships,

• a strengthened role of the courts in the appeal process.

At the same time, the core assumption of the reform remains unchanged: regional labour inspectors would be granted the authority to determine the existence of an employment relationship by way of an administrative decision.

PIP Decisions and the Labour Courts

Under the current proposal:

• a PIP decision would have legal and public-law consequences only from the date of issuance, with no retroactive effect,

• appeals against PIP decisions would be filed directly with the labour court (district court).

This model is intended to enhance procedural safeguards for employers while maintaining the effectiveness of labour inspections.

Purpose of the Reform – Stronger Protection and More Effective Enforcement

The overarching objectives of the reform remain:

• improving the effectiveness of labour inspections,

• strengthening the protection of individuals working under civil law contracts and B2B arrangements,

• limiting the misuse of non-employment forms of cooperation.

Six-Month Amnesty for Employers

The draft legislation introduces a transitional mechanism.

Employers who voluntarily convert civil law contracts into employment contracts within six months of the Act entering into force would be exempt from petty offence liability.

Labour Inspections, Social Security and Tax Authorities – Current Legal Reality

Regardless of the fate of the new draft:

• Social Security (ZUS) and tax authorities already have the power to assess whether a given cooperation model displays the characteristics of an employment relationship,

• inspections involving civil law and B2B contracts may result in significant financial consequences, comparable to those arising from PIP inspections,

• institutional cooperation between public authorities continues to intensify.

 Why the PIP Reform Should Remain on the Agenda

The revised proposal clearly demonstrates that:

• the PIP reform has not been abandoned, but rather temporarily slowed down to refine its final shape,

• regulatory pressure on civil law and B2B contracts continues (notably due to the National Recovery Plan and the EU platform work directive introducing a presumption of employment),

• the direction of change points to a long-term regulatory process, even if legislative momentum fluctuates.

 Key Takeaways – How to Prepare

The suspension of the first version of the reform did not mark its end. The new draft confirms that the National Labour Inspectorate will play a central role in future labour market regulation.

In light of this, organisations should already consider:

• reviewing B2B and civil law cooperation models,

• strengthening documentation reflecting the actual manner in which work is performed,

• preparing internal procedures for potential PIP inspections.