However, ZUS will demand overdue contributions. New arrangements regarding the PIP reform

The government is revealing its cards regarding the reform of the National Labor Inspectorate. As “Gazeta Wyborcza” found out, the bill, which is to implement one of the KPO milestones, was passed by the Standing Committee of the Council of Ministers. The most important change? No more having to go to court to turn a “junk job” into a full-time job – now the inspector will do it with one signature. But someone will ask for overdue contributions…

Just before the weekend, the media reported that the teeth of the law had been knocked out and, among other things, the provision on the need to collect overdue contributions had been abandoned. As we wrote, the Ministry of Labor ultimately decided to take a radical step and decided to remove the possibility of issuing decisions with retroactive effect from the project. Today “GW” reports that however, ZUS will be able to deal with overdue contributions.

Until now, labor inspectors' hands were tied. Even if during the inspection they found that the employee on a contract of mandate or B2B was performing duties typical of a full-time position (at a specific place, time and under the supervision of the boss), they could only file a lawsuit to establish an employment relationship. Effect? Few lawsuits and long trials. The new regulations are intended to change this dramatically.

Administrative decision instead of a lawsuit

According to the project described by “Wyborcza”, the labor inspector will gain a powerful tool: administrative order. If it finds that the form of employment does not correspond to reality, it will issue a decision to transform the civil law contract into an employment contract.

What does this mean in practice?

• The inspector's decision will be immediately enforceable in terms of current employment.

• The burden of proof and the procedural initiative will be transferred to the employer. If the company does not agree with the official's verdict, it will have to appeal to court to challenge the decision.

Interestingly, the government leaves a loophole for those who want to maintain the B2B contract questioned by the inspector. As Maciej Berek, the minister responsible for the government's program work, explained, “if the inspector finds that the situation is illegal, he will ask for the situation to be adjusted to the legal status.” So the employer and the employee will have to adjust the terms of the contract to reflect the actual situationso they did not contain elements indicating an employment contract, e.g. fixed hours in the office. If they reach an agreement, the inspector will not make a decision to change B2B to full-time employment.

ZUS will be able to demand contributions

The time frame of the decision is controversial. The inspector will be able to determine the existence of an employment relationship not only for the future, but also up to three years back (counting from the date of initiation of the inspection). This means potentially the need to settle outstanding ZUS contributions and taxes.

– If the National Labor Inspectorate finds the existence of the characteristics of an employment relationship, it is important factual information for ZUS that for a given period – covered by the National Labor Inspectorate's decision – there should be an entitlement to employee insurance. On this basis, ZUS may initiate its own proceedings and issue a decision on being subject to social insurance – explains Dr. Katarzyna Kalata, legal advisor at the Kalata Law Firm, in “GW”.

However, the government has introduced some “safeguards”. The employer's filing of an appeal to the court will suspend the execution of the decision in the part relating to the financial consequences for the past period. This means that the company will not have to pay the arrears until the court validly confirms the inspector's case.

The inspector is also human (and may hesitate)

An interesting element of the project is leaving a loophole for inspectors. In complicated and non-obvious situations the official will not have to issue an administrative order – he will still be able to choose the old path, i.e. filing a claim with the labor court. This is to prevent hasty decisions being made in matters that require a deeper analysis of the evidence.

Entrepreneurs do not hide their concerns, pointing to the risk of arbitrariness of officials and legal chaos. In turn, the government argues that without these changes, the fight against bogus self-employment will remain fiction, and Poland will not receive money from the KPO. The new regulations are likely to enter into force at the beginning of 2026.

prepared by COGS

Source: