How to transfer a B2B contractor in Poland to employment?
In July 2026, revolutionary changes will be introduced in the powers of the National Labor Inspectorate in Poland (PIP), which could lead to significant changes in the labor market. Under the reform of the Act on the National Labor Inspectorate, which is scheduled to come into force on April 8, 2026, the National Labor Inspectorate will gain the authority to convert B2B contracts into employment contracts.
This will be possible by issuing an administrative decision at the end of an inspection procedure, instead of, as previously, only through court proceedings. At the same time, even before issuing a decision, the inspector will be able to issue a binding order to the employer, aimed at implementing changes in cooperation with the contractor.
The new powers of the inspectorate are causing employers to consider whether it is worthwhile to continue employing B2B contractors in Poland, considering the associated risk of contract conversion. Many employers are already considering changing the form of employment and transferring contractors to an employment contract – which may change the face of the labor market in Poland, especially in the IT industry, where the B2B contract is the most common form of employment.
First step to introduce changes
An employer considering a change in employment arrangements and transferring B2B contractors to employment contracts should first analyze the intended character of the collaboration between the parties. If the B2B contract they have concluded with the contractor does not truly resemble an independent business relationship and is essentially indistinguishable from an employment contract, transferring the contractor to an employment contract may result necessary.
However, if the employer does not want to be bound by the rigid rules of the Labor Code regarding, for example, the workplace, working hours, limited employee liability, the obligation to provide equipment, and occupational health and safety regulations, and values the contractor's independence, B2B collaboration may prove to be the right form of engagement.
The choice of engagement form should be based primarily on the employer's business needs and the requirements for collaboration, not the costs associated with a given form of staff engagement.
Communication with the contractor
If, following a business analysis and risk assessment, the employer concludes that the individual should be transferred from a B2B contract to an employment contract, this will require the termination of the B2B contract and the conclusion of an employment contract. To achieve this, the employer will first need to discuss the change with the contractor and determine whether they are interested in concluding employment contract.
It may turn out that the proposed change will not be met with the contractor's approval. Therefore, the employer must consider the possibility of termination if the contractor is not interested in transferring to an employment contract. Therefore, the employer should prepare for the discussion, presenting the contractor with the new terms of cooperation and the benefits of a potential employment contract.
The employer should be prepared for questions regarding the salary level in the employment contract – it is difficult to imagine a situation in which the contractor would be interested in worsening their financial situation. If, due to increased costs of employment under an employment contract, the employer plans to reduce the contractor's net salary, it is worth preparing additional arguments that could encourage the contractor to sign an employment contract (e.g., additional paid leave, a longer notice period, access to private benefits such as insurance or a sports card).
Contract change and its consequences
If both parties agree to the new framework for cooperation, an agreement should be concluded to terminate the B2B contract and all resulting liabilities should be settled accordingly. The parties should then enter into an employment contract. In the employment contract, the parties should specify at least: the type and duration of the contract, the start date of work, the place of work, the job title, working time, the salary amount and the payment date.
For the contract to be valid, it must be in writing, i.e., signed by both parties. The parties may also establish additional elements concerning the employment relationship in the contract, such as confidentiality rules, non-competition clauses, use of company equipment, remote work rules, etc.
It is important to note that before starting work, the employee will be required to undergo mandatory medical examinations and initial occupational health and safety training, which is required of all new employees. After starting work, the employer will have 7 days to register the employee with the Social Insurance Institution (ZUS).
Upon conclusion of the employment contract, the employer will be responsible for paying ZUS contributions and tax advances for the employee. This will require the employer to settle salaries systematically and on time, which may require the involvement of a payroll specialist.
From the moment the employment contract is concluded, the employee will be entitled to paid vacation and sick leave, other paid leaves (e.g., related to parenthood), and sick leave - which may entail additional costs for the employer that he previously did not have to bear. Therefore, the employer must consider the increased costs associated with transferring a contractor to an employment contract.
Costs of the transfer
In addition to the costs associated with the employer's additional obligations (such as medical examinations, occupational health and safety training, paid leaves, and the engagement of a payroll specialist), the employer will also be forced to incur increased employment costs related to the employee's salary.
In the case of a B2B contract, the employer's only cost is the net amount agreed upon in the contract, which the contractor receives based on the issued invoice. In the case of an employment contract, the gross amount is established in the contract, from which contributions and tax advances are then deducted for the employee – which, after deductions, gives the employee's net earnings.
However, the employer's cost is not only the gross salary agreed upon in the contract, but also the additional social security contributions charged to the employer, which are paid in addition to the gross amount. Therefore, in the case of employment contract costs, we refer to the total employment cost, which is always significantly higher than the gross amount agreed upon with the employee in the employment contract.
To illustrate this with a sample calculation, in the case of a contractor earning PLN 10,000 net per month, if the parties agree to transfer to an employment contract while maintaining the contractor’s current net salary, the total cost to the employer will be PLN 17,090, which is over PLN 7,000 more than before.
B2B - PLN 10,000 net
Total cost: PLN 10,000 net.
Employment contract - PLN 10,000 net.
Gross amount in the contract: PLN 14,185.48.
Total cost: PLN 17,090.67 (includes additional social security contributions charged to the employer).
The parties should therefore each time agree on how the contractor's remuneration will be converted from a B2B contract to an employment contract - the contractor will be interested in the final net amount, while the potential employer will be interested in the total cost of employment.
Proactive action and preparation for change are key to success
Given the significant differences in costs and features of B2B and employment contracts, employers hiring B2B contractors should prepare now for the upcoming changes to PIP entitlements and independently review their hiring arrangements.
This will require employers to audit contracts, assess the terms of engagement and internal practices, and make decisions regarding the implementation of changes. Proper preparation and proactive decision-making can prevent negative control results and the forced conversion of B2B contracts to employment contracts.
A proper audit of the forms of employment may require the advice of a labor law specialist who will advise on the content of the relevant contracts, terms of engagement, and necessary changes, as well as on the process of transitioning from a B2B contract to an employment contract. If you require help of a professional, we recommend contacting our law firm at: [email protected].