Polish government rejected initial PIP reform bill; minister warned of €11B KPO funds loss if reform fails.
Initial Reform Rejected
In early January, the government rejected a bill from the Ministry of Family, Labour and Social Policy to reform the State Labour Inspection (PIP). The bill aimed to convert sham contracts (work for hire, assignment, B2B) into employment contracts via administrative decision, with possible appeal to the Chief Labour Inspector and then court. Prime Minister Donald Tusk criticized the proposal, stating changing employment form without consulting employers or employees, or a court ruling, was a bad idea.
The rejection came despite the bill progressing through governmental committees in August (Government Work Programming Team), October (Digitization Committee), and early December (Standing Committee of the Council of Ministers).
Minister’s Warning on Funds
On 30 December, Minister of Family Agnieszka Dziemianowicz-Bąk (New Left) sent a letter to Prime Minister Donald Tusk. She requested the Council of Ministers consider the reform project, warning that non-implementation risked Poland losing approximately PLN 11 billion (€8.3B for reform objective A71G and €2.8B for A72G) from the National Recovery Plan (KPO) based on ministry estimates.
Her letter cited the project’s prior approval by governmental bodies. While the document did not explicitly state Tusk would be personally responsible for lost funds, it clearly warned Poland stood to lose money without government action.
Government Response and Controversy
Journalists reported in January that Dziemianowicz-Bąk had urged Tusk to expedite the reform. She allegedly suggested Tusk would be personally responsible for lost KPO funds, though the ministry later denied this claim. TVN24 reported a government meeting in late December ended in an argument, with Tusz reportedly demanding explanations from Dziemianowicz-Bąk and another minister about why the project, not approved by the government, was included.
Latest Reform Proposal
In early February, the Standing Committee of the Council of Ministers approved a modified PIP reform bill for consideration by the full Council. The new proposal allows PIP inspectors to issue an “order” to employers. Failure to comply would lead the case to a regional labour inspector, with a 30-day right of appeal to court.
