President Karol Nawrocki signed the amended Act on the State Labor Inspectorate (PIP) on Thursday, but has also referred it to the Constitutional Tribunal for review.
President Signs Amended Labor Inspection Act
President Karol Nawrocki announced on Thursday that he signed the amended Act on the State Labor Inspectorate (PIP), but simultaneously referred it to the Constitutional Tribunal for further assessment.
The reform grants PIP the authority to convert spurious civil law contracts and B2B agreements into employment contracts.
President Expresses Reservations
In a statement published on the President’s office profile on X, President Karol Nawrocki emphasized that he continues to have serious doubts about parts of the reform – particularly those granting very broad powers to PIP concerning entrepreneurs.
Balancing State Power and Economic Freedom
“The state must be strong, but it cannot be excessive in its interference. The Constitution clearly states the principle of subsidiarity and proportionality. Public authorities must not exceed the boundaries of influence on economic life, and this must be unequivocally assessed,” the President stated.
PIP’s New Regulatory Powers
The regulations stipulate that a labor inspector – upon finding irregularities – will first be able to issue an order regarding the functioning of a civil law contract or the non-conclusion of an employment contract – in situations where the legal relationship between the parties is dominated by the characteristics of an employment relationship.
Enforcement and Judicial Review
If the order is not complied with, the inspector will be able to request the district labor inspector to initiate administrative proceedings, which may result in a decision to convert the contract or to file a lawsuit to establish the existence of an employment relationship.
An appeal can be filed against the decision, and it will be suspended until a final judgment is issued.
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