In light of recent legislative proposals aimed at strengthening the role of the National Labour Inspectorate (PIP) by granting it the authority to determine the existence of an employment relationship in cases where civil law contracts have been signed, it is worth reflecting on the legitimacy and consequences of such a decision in the context of the rule of law and democratic principles.
The draft bill would allow PIP inspectors to issue an administrative decision—immediately enforceable—intended to improve the situation of workers and enable more effective enforcement of labour law provisions.
Legal and Constitutional Concerns
However, granting such powers raises serious concerns about compliance with constitutional principles of law, including the principle of a democratic state governed by the rule of law, which guarantees equality of parties in administrative proceedings.
An analysis of PIP’s annual report reveals contradictions between government declarations and actual practice. According to the 2024 report, labour inspectors reviewed 38,881 civil law contracts, of which only 3.6% were deemed to have been misclassified and should have been signed as employment contracts. For comparison, this ratio stood at 4.5% in 2023 and 4.8% in 2022. These figures show a declining trend in misclassified contracts, suggesting that existing regulations are already sufficiently enforced by PIP inspectors.
Against this backdrop, granting PIP sweeping powers to declare the existence of an employment relationship through immediately enforceable administrative decisions may be seen as an attempt to bypass democratic procedures that should govern proceedings in a rule-of-law state. Such a solution not only undermines fundamental legal principles but also risks causing financial and reputational harm to businesses. The proposed seven-day deadline to appeal PIP’s decision in labour court is extremely short and does not allow entrepreneurs adequate time to prepare a proper defense—effectively placing the burden of proof on them to demonstrate they have not broken labour laws, echoing principles found in criminal law.
Economic Implications
From an economic standpoint, it is clear that these measures are not primarily driven by concern for workers but rather by an effort to increase tax and social contribution revenues. In reality, this appears to be another mechanism burdening employers and reducing flexibility in the use of civil law contracts. Such regulations could lead to unintended consequences, including restricting access to flexible forms of employment that are especially valued in today’s rapidly changing labour market.
Call for Alternative Reforms
In summary, instead of granting PIP new powers that risk violating fundamental principles of a rule-of-law state, efforts should focus on improving existing oversight and enforcement mechanisms, which are already relatively effective. More importantly, there is a pressing need for comprehensive reform of labour law itself so that it better reflects current economic realities, where the workplace is no longer primarily a mine, steel mill, or factory. Otherwise, instead of improving the situation of workers, we may end up with an environment where growing regulation only deepens problems related to bureaucratic burdens and legal uncertainty for businesses.
About the Expert
The author is a legal counsel (WA-10379) and tax advisor (entry no. 11541) with extensive experience advising entrepreneurs, investors, and family businesses. He specializes in legal and tax advisory services in restructuring and transactional matters, with a particular focus on tax planning, corporate reorganizations, and ongoing legal-tax support for businesses.
At LITIGATO Pławiak Prokurat Karcz, he leads projects in wealth succession using family foundations, advises on mergers and acquisitions (M&A), and represents clients in tax, commercial, and economic criminal proceedings.
He has significant experience working with clients from sectors including real estate, IT and new technologies, fuels and renewable energy, agriculture, and financial services. He also supports start-ups and technology companies in fundraising, corporate matters, intellectual property protection, tax reliefs, and implementing incentive schemes for specialists.
His career path includes positions in EY’s tax advisory department and at renowned law firms SK&S and Dentons. He is a graduate of the Faculty of Law and Administration at the Cardinal Stefan Wyszyński University and the Faculty of Journalism and Political Science at the University of Warsaw.
Source: CEO.com.pl
