Poland’s government has unveiled a revised reform for the State Labor Inspectorate that gives greater authority to labor courts, a condition for receiving EU recovery funds.
PIP Reform Tied to EU Recovery Funds
Giving the State Labor Inspectorate (PIP) the power to convert civil law contracts into employment contracts is one of the so-called milestones from which the disbursement of funds from the National Reconstruction Plan depends. Poland has time to implement the EU directive by June 30 of this year.
The first version of the PIP reform prepared in the Ministry of Labor was not accepted by Prime Minister Donald Tusk. As the head of government explained in mid-January, the excessive power for officials introduced by the reform would be destructive for companies and would mean job losses for many people.
Goal Remains Converting Civil Contracts to Employment
The new version of the bill amending the State Labor Inspection Act and some other acts was published on Friday on the Government Legislation Centre website. According to the current proposal, the appeal process against an inspector’s decision has been clarified. The appeal will be able to be directed to the regional labor inspector and then to a common labor court.
Minister of Labor Agnieszka Dziemianowicz-Bąk said on Friday: “Together with the Ministry of Justice, we have worked out solutions that increase the role of labor courts in the entire process.” She emphasized that the project’s goal remains unchanged – to counteract pathologies in the labor market, i.e., so-called “junk contracts.”
New Procedure After Labor Inspectorate Inspection
In the project published on Friday, the PIP’s competence to convert civil law contracts into employment contracts was maintained. According to the proposal, the regional labor inspector – in case of irregularities – will have the option to choose a reaction measure: from issuing an order, through issuing a decision establishing the existence of an employment relationship, or referring a lawsuit to court.
After the inspector’s decision, the parties (employer and employee) may conclude an employment contract. If such an action is taken and approved by the labor inspector, the proceedings will be terminated without the need for further administrative action.
Appeals Process Against Inspector Decisions
Parties may also shape their civil law relationship – in terms of its content or method of implementation – in such a way as to remove elements characteristic of an employment relationship and eliminate charges of inconsistency with labor law regulations. The labor inspector will be empowered to assess the proper implementation of the issued order.
In the assessment of the regulation’s impact, it was indicated that the inspector’s decision will have legal effects from the date of its issuance, but will become enforceable on the expiry date of the deadline for filing an appeal or the date of the court’s final judgment.