Out of 229 thousand software and IT companies registered in Poland, as much as 99% may consist of individuals working on B2B contracts. In the IT sector, this is the norm, convenient for both employers and workers. According to No Fluff Jobs data, B2B contract was offered in 74% of job ads for people with extensive IT experience in the first half of 2024, while an employment contract was offered in 49.5%. However, new regulations may soon be enforced, which will force such individuals to become employed.
Tomasz Bujok, CEO of No Fluff Jobs – a Polish job portal that has been making it easier for candidates to find work that matches their financial expectations for 10 years, comments on the planned changes and their significance for the IT industry.
Work is underway on a reform of the State Labor Inspection Authority, which aims to streamline the process of enforcing regulations by its inspectors, including granting them the right to issue an order to convert a civil contract or B2B contract into an employment contract, if it meets the required conditions – previously, only a court could decide this. At the same time, an EU directive regulating the work of people employed through digital platforms (e.g., drivers, food couriers) is likely to be approved soon. The new regulations are intended to help identify who out of those employed on B2B contracts is actually a service-providing company, and who should have the protection given to full-time employees. According to the EU, this form of employment is unfair for people who have an actual working relationship with companies but do not have access to benefits provided by employment contracts.
Are as many as 99% of IT companies in Poland self-employed?
IT professionals are keeping a wary eye on the new regulations. In this sector, B2B contracts are the norm, and the percentage of job offers offering this type of agreement has remained consistently high. According to the Central Statistical Office’s data from June of this year, over 229,000 businesses registered in Poland are involved in software and IT services, with over 99% employing fewer than ten people. The majority of these small businesses are likely to be individuals hired under B2B contracts.
Interestingly, the market is currently facing a crisis, with a decline in available offers and closure of projects, as we discussed in our “Unemployment in IT” report. However, the fact that there are fewer job offers now than there were a few months ago does not mean that the form of companies collaborating with workers in this sector will change drastically. If this change were forced upon everyone, regardless of the nature of their work, tech industry workers might feel as though they have been caught in crossfire because the EU wants to improve conditions for another group. Who knows, this might even lead to further stagnation in IT.
The higher the position, the greater the popularity of B2B contracts
Both employers and employees appreciate this solution. Employers avoid costs associated with health contributions and social insurance, and employees can count on higher net earnings, which are especially beneficial for people in senior positions earning tens of thousands of zlotys per month.
The highest percentage of B2B contract offers in the IT industry can be found among job ads aimed at seniors i.e., people with extensive experience in the industry. According to No Fluff Jobs data, in the first half of 2024, 74% of senior job offers included a B2B contract proposal. An employment contract was proposed in 49.5% of offers, mandate contract in 1.14%, and contract of specified work in 0.33%. These percentages do not add up to 100, as employers can suggest various types of contracts in one offer.
Among offers aimed at beginning IT specialists, the majority offer an employment contract, accounting for 56.35% in the first half of 2024. Still, B2B offers are only slightly fewer – 49.72% . In the case of mandate contracts, this is 22.24%, and contract of specified work – 2%.
Changes are also coming to regulations regarding leave
People employed on B2B contracts, unlike full-time employees, are legally not entitled to holiday leave or sick leave, which can be problematic. Often, employers agree with them on a certain number of days off per year, but problems can occur in case of illness. In addition, when switching to full-time employment, previous B2B or civil-law contract does not count towards the length of service based on which holiday leave or notice period is calculated. This, too, may soon change – a bill amending these labor code provisions is supposed to come into force at the beginning of 2026.
Source: https://managerplus.pl/zmiany-w-zatrudnieniu-w-branzy-it-kontrakty-b2b-pod-lupa-nowych-regulacji-56899
