Poland’s security industry anticipates widespread inspections by the State Labor Inspectorate (PIP) regarding employment contracts and potential misclassification of workers.
Anticipation of Increased Inspections
The Polish security sector expects a surge in inspections from the PIP, triggered by new regulations coming into effect in July.
Employers fear being forced to choose between accepting labor inspector decisions to reclassify civil law contracts as employment contracts, or facing lengthy and costly court battles.
Employer Concerns and Legal Challenges
Companies are concerned about the potential for mass issuance of decisions by the Social Insurance Institution (ZUS) and the Okręgowy Inspektor Pracy (District Labor Inspector), which could paralyze their operations.
The scale of potential inspections and the limited appeal process are major concerns, with businesses anticipating a flood of lawsuits that could overwhelm the labor courts.
Expanded Inspection Powers
The PIP may request online document access during inspections and demand electronic submission of personnel records and work-related documentation.
This could create additional costs and resource demands for companies, particularly those that haven’t fully digitized their records and need to implement data security measures.
Company Preparations and Risk Assessment
Employers are currently evaluating risks and resources needed to handle potential inspections, focusing on self-assessment analyses.
While contract reviews are underway, the emphasis is on verifying how contracts are implemented, rather than just their content, and assessing whether the intent and execution align with standard employment relationships.
Focus on Contract Characteristics
Attention is being paid to identifying characteristics of employment contracts within civil law agreements, and the potential for inspectors to reclassify them.
The self-control checklist from the GIP (Chief Inspectorate of Labour) is helpful, but the complex and inconsistent case law in this area introduces uncertainty, as the opinions of employees during inspections can significantly impact outcomes.
Addressing Underlying Issues
A key change needed within the security sector is a reevaluation of service pricing, as pressure from clients for the lowest bids has contributed to problematic practices.
Convincing clients to accept higher prices while facing potential random PIP inspections is challenging, as security agencies bear the brunt of the risk.
Limited Mitigation Options
Beyond transparent documentation, self-checks, and potential digitization, companies see limited options other than preparing for a potential shift from civil law contracts to employment contracts.