The subject of reforms in the social security and labour law system has returned to face new information. The Social Insurance Institution (ZUS) develops an algorithm to identify companies hiding traditional jobs under the appearance of B2B contracts. The State Labour Inspection (PIP) will receive a list of "suspected" entities, which can significantly change the landscape of the Polish labour market.
New PIP and Role of ZUS Algorithm
From next year PIP inspectors will gain significantly enhanced tools. Instead of directing cases to courts, they will be able to issue administrative decisions on the recognition of the B2B Agreement as an employment relationship. Such a decision is immediately feasible, which means that the company must immediately treat the counterparty as a staff member – pay remuneration, pay ZUS contributions and advance payments tax income. Furthermore, the employer will not be able to terminate the contract until the court judgment is final, which may take up to 3-5 years.
The key element of the reform is the Risk Analysis System – an integrated algorithm based on databases of ZUS, PIP and National Tax Administration (KAS). The system will automatically identify control entities, detecting anomalies such as:
- Transport company with trucks but no employees.
- Software house employing programmers exclusively on B2B.
- Contractor issuing invoices to only one customer with the title "remuneration for [month]".
In one interview, the General Labour Inspector described this system as "child in a toy store," emphasizing its potential in effective fraud detection. Controls can be conducted remotely or hybridly without the need for a physical visit to the company.
If B2B is considered to be fictitious, the Social Insurance Institution may request a correction of contributions for up to 5 years back, including interest. Recent updates indicate that ZUS and the Ministry of Finance oppose the remission of late contributions, which rejects earlier ideas of a "fat line" for past violations.
Consequences for Companies and Workers
The reform carries serious financial and legal risks. For companies, this means potential contributions, adjustments to tax returns (PIT, VAT) and loss of image. Small businesses, like software houses, can stand on the brink of bankruptcy if controls cover several contractors for a period of 5 years.
For self-employed people, the loss of B2B status means that business costs (e.g. leasing equipment or car) cannot be deducted, which may lead to liquidity problems. In case of an algorithm error – so-called "false positives" – an honest entrepreneur may be wrongly identified, for example in the event of a temporary decrease in the number of customers caused by the industry crisis.
To minimise risks, experts recommend audit of B2B contracts, documenting the independence of counterparties (cooperation with multiple clients, free time management) and consulting lawyers specialising in labour law.
