A draft law on the State Labour Inspectorate (Państwowa Inspekcja Pracy, PIP), prepared by Poland’s Ministry of Family, Labour and Social Policy, has sparked sharp criticism from business groups. The Entrepreneurs’ Council, headed by Adam Abramowicz, has appealed to Prime Minister Donald Tusk to reject the proposal in its entirety. In a letter to the Prime Minister, the organization warned that Minister Agnieszka Dziemianowicz-Bąk’s proposed measures are seen by entrepreneurs as an assault on the principle of economic freedom. Abramowicz argues that if adopted, the law could lead to the collapse of many companies and the loss of competitiveness in key sectors of the Polish economy.
Administrative Power to Redefine Contracts
The most controversial element of the bill would grant PIP inspectors the right to reclassify civil contracts and B2B agreements as employment contracts through administrative decisions. Currently, such determinations are made exclusively by labour courts, which enjoy constitutionally guaranteed independence and jurisdiction in employment matters.
Transferring this power to an administrative authority, Abramowicz warns, would undermine judicial independence and violate the separation of powers. The Council points out that an administrative decision by a labour inspector — which would be immediately enforceable — could have irreversible effects, particularly for employers forced to comply before a court could review the appeal.
There are also serious doubts about the practical enforceability of such decisions. Even if an inspector reclassified a B2B contract as an employment relationship, Abramowicz notes, the worker could terminate the new contract the same day and re-sign a civil contract. “How could a bureaucrat force an employment relationship if neither party wants it?” he asks. In the view of business organizations, such a mechanism would not strengthen worker protection but rather create legal chaos, bureaucracy, and extra costs for the economy.
Broader Powers and Digital Surveillance Concerns
Another contentious point is the expansion of PIP’s control powers, including remote inspections and continuous data exchange with the Social Insurance Institution (ZUS) and the National Tax Administration (KAS).
At present, inspections can only be carried out on a case-by-case basis and under justified circumstances. The draft law, however, would allow for permanent monitoring, which the Entrepreneurs’ Council warns could lead to systemic surveillance of businesses. Abramowicz cautions that such provisions could turn entrepreneurs into objects of constant observation and profiling, fundamentally changing the relationship between the state and its citizens.
Harsher Penalties and the Risk of Overreach
The bill also proposes a significant increase in financial penalties for employers who violate labour law. According to business groups, the new sanctions are excessively punitive and disproportionate to the gravity of offenses. Even minor formal mistakes could trigger large fines, potentially leading to financial instability or bankruptcy, especially among small firms.
The Council stresses that administrative penalties should be educational, not repressive, but the draft law uses them as a tool of punishment. Instead of encouraging compliance and trust, the reform could create an atmosphere of fear and distrust toward regulators.
Lack of Dialogue and Policy Inconsistency
Entrepreneurs also criticize the lack of public consultation in drafting the law. They argue that the ministry, which in other areas claims to support simplification and deregulation, is now pursuing the opposite course — expanding state control and bureaucracy.
“While other ministries work to reduce red tape and improve the business environment, the Ministry of Labour is moving in the opposite direction — tightening control and curbing entrepreneurial autonomy,” says Abramowicz.
Such measures, he warns, undermine Poland’s competitiveness and could discourage investment.
Employers Call for Rejection and Dialogue
In their letter to Prime Minister Tusk, the Entrepreneurs’ Council urges the government to reject the bill entirely and open a genuine dialogue with business representatives. They acknowledge the need to combat abuses in the labour market but insist that solutions must be proportionate, balanced, and based on cooperation rather than confrontation.
They propose simplifying procedures, improving the enforcement of existing laws, and using judicial mechanisms more efficiently — rather than creating new administrative powers that could destabilize the economy.
Government and Inspectorate Defend the Reform
Officials from the State Labour Inspectorate and the Ministry of Labour defend the proposal, claiming its purpose is to strengthen worker protection and eliminate abusive employment practices.
Chief Labour Inspector Marcin Stanecki insists that the new powers will not be abused and will apply only to clear cases of misuse. He says the reform aims to speed up dispute resolution, as current court cases often drag on for years.
The Ministry adds that the proposal stems from Poland’s commitments under the National Recovery Plan (KPO), which requires stronger labour law enforcement and reduced labour market segmentation.
Constitutional and Economic Concerns
Nevertheless, legal experts and entrepreneurs highlight serious constitutional and economic risks. Shifting key powers from courts to an administrative body could violate the right to a fair trial and erode judicial independence. Combined with broad inspection powers and heavy fines, the new framework might have a chilling effect — discouraging entrepreneurship and reducing labour market flexibility.
In practice, this could lead to greater legal uncertainty, lower investment, and weakened competitiveness among Polish firms.
Conclusion: Risk of Legal Chaos and Market Destabilization
The Entrepreneurs’ Council argues that the current draft is beyond repair and must be withdrawn. Employers expect the government to return to talks with business organizations to design a reform that balances worker protection with business freedom.
If the government proceeds with the current version, experts warn of legal disputes, loss of trust between business and the state, and rising operational costs. Ironically, reforms meant to protect employees could end up reducing jobs and driving activity into the shadow economy.
Thus, the employers’ appeal to the Prime Minister serves not only as a policy critique but as a warning against legislative haste and the absence of social dialogue.
Source: CEO.com.pl
