What Determines Whether Employment Should Be Classified as an Employment Relationship?
Under the well-established principle of substance over form, the name of the contract itself is not decisive if the way in which the work is actually performed corresponds to the characteristics of an employment relationship. This was confirmed by the Polish Supreme Court in its judgment of 10 July 2019, case no. III PK 87/18. The Court indicated that where a contract is, in practice, performed under conditions typical of an employment relationship, that factual assessment - rather than the wording of the parties’ declarations made when concluding the contract - determines the legal nature of the relationship between the parties.
In practice, where a contract contains features of both employment and a civil law arrangement, it is necessary to assess which characteristics prevail in the actual day-to-day performance of the work. In other words, what matters is how the cooperation functions in reality, not only how the document is worded.
If, in practice, the characteristics of employment prevail, such cooperation should be classified as an employment relationship.
In the case law of the Polish Supreme Court, typical features of an employment relationship include, among others: work performed by an individual for remuneration, personal performance of work, no risk borne by the employee as to the result of the work, and subordination to the employer in the course of performing duties.
What Is a Contract of Mandate in Poland?
A contract of mandate is regulated by Article 734 et seq. of the Polish Civil Code. Pursuant to Article 734 § 1 of the Civil Code, the party accepting the mandate undertakes to perform a specified legal act for the party granting the mandate. In practice, this means that the key element is the performance of a specific activity for the principal, rather than organisational subordination typical of an employment relationship.
A contract of mandate is a consensual agreement and, as a rule, creates obligations for both parties. It may be concluded for remuneration or free of charge, in accordance with Article 735 of the Civil Code. In business practice, however, remuneration is standard and is usually agreed as an hourly rate or a lump-sum fee for performing the assigned activities.
It is also important to note that a contract of mandate does not require any specific form. It may be concluded in any manner, including implicitly, under Article 60 of the Civil Code. However, from the perspective of a potential inspection by PIP and evidentiary security, it is advisable in practice to precisely describe the scope of activities, the method of remuneration and settlement, and the rules of cooperation in a written contract or written mandate.
It should be remembered that the term “legal act” used in Article 734 of the Civil Code is often interpreted broadly in legal doctrine and case law. Therefore, in practice, contracts of mandate frequently cover various recurring activities performed for the principal. It is the actual organisation of the cooperation - and not the title of the contract itself - that will be crucial when assessing whether the relationship meets the characteristics of an employment relationship.
What Will the 2026 Reform of the National Labour Inspectorate in Poland Change?
The new regulations are not merely a procedural adjustment. They represent a real strengthening of employee protection and, at the same time, a clear signal to companies that the way in which cooperation is organised will now be subject to closer scrutiny.
The reclassification process is divided into two stages. If an inspector determines that the cooperation has the characteristics of employment, they will first issue an instruction to change the contract. Only if the company fails to comply with that instruction may the Regional Labour Inspector issue an administrative decision confirming the existence of an employment relationship.
There are also sanctions in the background: concluding civil law contracts in circumstances typical of employment may result in fines ranging from PLN 2,000 to as much as PLN 60,000.
The legislator has also provided for a transitional arrangement.
Companies will have one year from the date on which the act enters into force to voluntarily convert defective contracts into employment contracts, without the risk of criminal sanctions. This period should be used to conduct a thorough review of cooperation models, contractual provisions and, importantly, how these arrangements actually operate in practice.
In addition, entrepreneurs have been given a new tool. They may apply to the Chief Labour Inspector for an individual interpretation assessing whether a given cooperation model, such as a B2B arrangement, is legally safe. In my view, this route will still require caution and an in-depth analysis of the specific facts of each case.
Conclusions for Business in Poland
The reform of the National Labour Inspectorate marks the end of the era of fictitious self-employment and the misuse of contracts of mandate in sectors such as security services, construction and IT. Companies should audit not only the wording of their documents, but above all the actual way in which tasks are performed by their contractors.
If a contractor signs an attendance register, has an appointed supervisor and uses only a company laptop, the risk of this relationship being recognised as employment is high.
In practice, it is worth approaching this matter in a task-oriented way and planning actions for the coming weeks. Companies should start with an audit of civil law contracts and B2B cooperation models to assess whether, in the actual performance of the cooperation, features of an employment relationship are present. They should then identify the highest-risk contracts and compare the contractual provisions with day-to-day practice, because it is the actual practice - not the name of the document - that is decisive.
At the same time, it would be good practice to train managers, who are often the ones recreating employment-like arrangements under civil law contracts, and to organise documentation and cooperation rules so that clear internal standards and consistent contract templates operate within the organisation.
Finally, it is worth remembering that if the regulations provide for a 12-month transitional period, this time is best used for a calm and safe adjustment of contracts and practices, rather than acting at the last minute under the pressure of an inspection.
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