Month: September 2025

New Obligations for Companies Posting Employees to the Netherlands – What Will Change from 2027?

Posted on by kancelaria

Certification Requirement for Employment Agencies and Companies Posting Employees to the Kingdom of the Netherlands

The Dutch labor market is facing one of the most significant changes in the past decade. The upcoming WTTA Act („Wet toelating terbeschikkingstelling van arbeidskrachten”) introduces a mandatory certification requirement for all companies that provide employees to work in the Netherlands. This change applies not only to local and foreign temporary employment agencies but also to any other entities that make workers available on the Dutch labor market (“uitlener” under Dutch labor law).

The law was passed by the House of Representatives in April 2025. It still requires approval by the Senate, with a debate scheduled for October 7, 2025. The law is expected to come into effect on January 1, 2027. From January 1, 2028, agencies and companies seconding employees will be subject to verification regarding possession of the certificate, and cooperation with entities that are not legally authorized to operate in the Netherlands will be penalized.

Under the new regulations, all agencies providing employees will need to hold a valid license in order to legally supply workers to other employers. In practice, operating without such authorization will be illegal, and cooperation with unauthorized companies may result in financial penalties. The purpose of the WTTA Act is to protect workers and ensure that all agencies operate legally and comply with Dutch labor law, tax, and social security regulations. Companies that already hold a SNA certificate (Stichting Normering Arbeid) may benefit from a simplified licensing process, but they are still subject to the obligations under the WTTA Act.

Requirements for Employment Agencies and Companies Posting Employees to the Netherlands

To obtain certification, agencies must demonstrate compliance with specific requirements, including:

  • Possession of a VOG certificate (Verklaring Omtrent het Gedrag) – a certificate of good conduct for the company,

  • Provision of a financial guarantee (approximately €100,000),

  • Compliance with labor law and social security regulations,

  • Proof of proper payment of taxes and contributions.

The primary goal of the WTTA is to protect employees, ensure fair working conditions, and increase transparency in the labor market. The new regulations will enable companies using employees to cooperate only with legal agencies and posting entities, thereby reducing legal and financial risks.

These changes will have a significant impact on the functioning of the labor market in the Netherlands. Therefore, it is important to prepare in advance. Implementation of the WTTA will increase the responsibility of agencies and companies seconding employees, improve worker safety, and provide greater transparency across the sector.

New Labour Inspection Rules in 2026 – Are You Ready?

Posted on by kancelaria

Upcoming Changes in the National Labour Inspectorate – What Awaits Employers and Employees?

With the draft bill amending the Act on the National Labour Inspectorate (PIP) and certain other acts, prepared by the Ministry of Family, Labour and Social Policy, one of the most significant modifications to the employee protection system and labour market oversight in recent years is on the horizon.

The aim of the proposed changes is to strengthen the role of labour inspectors by equipping them with effective tools to respond to violations of the law and to align the mechanisms of the Labour Inspectorate with European standards. According to the government’s plan, the bill is to be adopted by the end of 2025. If so, both employers and employees will soon have to prepare for the upcoming changes.

Administrative Decisions on Employment Relationships

One of the most revolutionary (and controversial) changes is granting PIP inspectors the power to issue administrative decisions confirming the existence of an employment relationship.

This means that if, in the inspector’s view, a civil law contract actually meets the criteria of an employment contract (as defined in Article 22 § 1 of the Labour Code), the inspector may order its conversion into an employment contract without referring the case to a labour court.

Currently, inspectors do not possess such powers – they may only submit motions to the labour court, which rules on these cases in judicial proceedings. To protect workers from long-lasting litigation, such a reform has been planned.

An inspector’s decision will take effect from the date of issuance, granting the individual full employee status. Employers will then be obliged to pay wages under an employment contract, maintain personnel files, grant leave, and provide sick pay. Importantly, the decision may also set retroactive dates of employment, potentially obliging employers to pay employee benefits retrospectively.

Only the tax and social security consequences of periods prior to the decision will be suspended until the appeal period expires or a final court ruling is issued. Appeals against the inspector’s decision must be filed within seven days to the Chief Labour Inspector, and then within a further seven days to the local labour court.

Remote Inspections and Digitalisation

The reform introduces the possibility of remote inspections, allowing PIP to conduct procedures online. This includes workplace inspections, live video interviews with witnesses, and electronic submission of documents.

Inspectors will be able to use live video to assess machinery, equipment, or working conditions. Employers will correspond electronically during inspections, submitting explanations and objections by e-mail, while the inspection protocol will be issued digitally.

Data Exchange Between PIP, ZUS, and KAS

The National Labour Inspectorate will be granted the right to cooperate and exchange data with the Social Insurance Institution (ZUS) and the National Tax Administration (KAS).

This will accelerate the identification of irregularities, especially regarding contributions and taxes. Data will be exchanged digitally, with fully automated verification processes, significantly enhancing efficiency.

Increased Budget and Higher Penalties for Employers

For 2026, PIP’s funding is expected to increase by around 10%. At the same time, stricter penalties will be introduced, particularly for misuse of civil law contracts.

  • Maximum fines imposed in administrative proceedings will double – from PLN 2,000 to PLN 5,000.

  • Court-imposed fines may rise up to PLN 60,000.

Risk-Based Inspections

Labour inspections will be planned based on risk analysis, with annual and long-term strategies focusing on industries and sectors most vulnerable to labour law violations.

Preparing Employers for the Reform

Although the bill is still at the legislative stage and may undergo further amendments, employers should already start preparing. The process may be time-consuming and requires a thorough review of current employment practices.

Employers should:

  • Audit civil law and B2B contracts – check whether they contain characteristics of employment and adjust documentation to reflect reality.
  • Define models of cooperation – clearly distinguish employment contracts from outsourcing or service contracts and prepare internal policies justifying these distinctions.
  • Develop alternative cooperation models – to protect competitiveness and ensure compliance with the new system.
  • Organise documentation and records – ensure compliance with labour law requirements across HR and payroll processes.
  • Conduct training for HR, payroll, tax, and procurement teams – prepare staff for new procedures and possible inspections.
  • Prepare an inspection response plan – including communication strategies and step-by-step scenarios in case of PIP audits.

Higher Minimum Wage and Hourly Rate in 2026 in Poland.

Posted on by kancelaria

Minimum wage – PLN 4,806 gross

As of January 1, 2026, the increased minimum wage in Poland will take effect, set at PLN 4,806 gross. At the same time, the minimum hourly rate applicable to mandate contracts (umowa zlecenia) and service contracts will rise to PLN 31.40. These changes were introduced by a regulation of the Council of Ministers published in the Journal of Laws. In practice, this means that compared to 2025, the minimum wage will increase by PLN 140, while the hourly rate will grow by PLN 0.90.

It is worth noting that this increase is smaller than expected – more than PLN 200 gross less than what the Ministry of Family, Labour and Social Policy had announced just a few months earlier.

The regulation of the Council of Ministers is a consequence of the lack of consensus within the Social Dialogue Council. Under the Minimum Wage Act, if the social partners do not agree on the level of the minimum wage and hourly rate within the statutory deadline, the government decides – no later than September 15 of the given year. At the same time, the amounts adopted in the regulation cannot be lower than the proposals previously submitted for negotiation.

Practical Consequences for Employers

The new minimum wage and hourly rate are significant not only for employees but will also have a direct impact on employers’ financial situation, particularly in the SME sector. Higher labor costs will affect company budgets, especially in industries with a high share of employees working at the minimum wage level. On the other hand, the statutory mechanism ensures that the real value of the minimum wage remains linked to inflation and economic dynamics, serving as a safeguard for employees’ purchasing power.

Rising labor costs

Increasing the minimum wage automatically raises the cost of employing staff paid at that level. To the gross salary, employers must add social security and health insurance contributions, further increasing the financial burden.

Social security contributions and benefits tied to the minimum wage

The rise in the minimum wage affects the level of numerous contributions and benefits, such as the basis for calculating social security (ZUS) contributions, the minimum base for sickness benefits, the night work allowance, and severance pay.

As a result, employers’ costs rise not only in terms of wages but also other mandatory payments.

Civil law contracts

The new minimum hourly rate (PLN 31.40) applies to mandate and service contracts. Employers and contractors will be obliged to adjust remuneration terms in such agreements. This may require contract renegotiations, especially in sectors where these forms of employment are widespread.

Impact on HR policies and service pricing

For SMEs, particularly in industries with a high share of low-paid workers (retail, services, construction), the increase in the minimum wage may necessitate higher prices for services or goods. Companies may also consider reducing employment levels or restructuring their workforce in favor of automation and process optimization.

Indirect effect – wage pressure

An increase in the minimum wage often leads to demands for raises among employees earning above the minimum level, creating broader wage pressure and further cost challenges for employers.

ZUS vs. Employers: a New Battle over Social Security Contributions on Free Employee Accommodation

Posted on by kancelaria

Entrepreneurs in Poland are facing increasing legal challenges related to taxation and social security contributions (ZUS) on free accommodation provided to employees. Although administrative courts increasingly rule in favor of companies in disputes with the tax authorities, a new battle has emerged – this time with the Social Insurance Institution (ZUS).

Victories in Administrative Courts

Despite the fact that tax offices consistently maintain that the value of free accommodation constitutes income for seconded employees, more and more companies are winning cases before administrative courts. The courts confirm that the value of free accommodation is not subject to PIT (personal income tax).

A key ruling for taxpayers was issued by the Supreme Administrative Court on 1 August 2023 (case ref. II FSK 270/21). The Court held that EU regulations indicate that transport and accommodation costs cannot be included in wages – they should be borne by the employer, not the employee. In its reasoning, the Court emphasized that benefits provided to employees posted to another EU Member State cannot be regarded as part of remuneration, either under labor law or under Art. 12(1) in conjunction with Art. 11(2–2b) of the PIT Act. These are not “free-of-charge benefits,” as they are fully covered by the employer.

New Practice by ZUS Raises Concerns

Meanwhile, the Social Insurance Institution has launched a new practice that may significantly burden businesses. As a result of inspections, ZUS has been issuing decisions requiring employers to pay contributions on employee benefits, including free accommodation. These actions appear irrational. Since the contribution base is the employee’s income as defined by the PIT Act, and the taxation of such benefits has been rejected in recent court rulings, ZUS’s actions raise legitimate concerns. The contribution base is, after all, income within the meaning of the income tax law. This inconsistency between institutions could lead to absurd situations in which an entrepreneur wins a case against the tax office but loses against ZUS in an identical matter.

There are already  judgments favorable to employers. The District Court in Poznań, in a judgment of 3 December 2024 (case ref. VIII U 1936/24), ruled that the costs of accommodation and transport borne by the employer do not constitute a basis for social security contributions.

Impact on Businesses

The new practice of ZUS could mean significant financial burdens for entrepreneurs, particularly in the construction sector, where employee posting is common. Of course, companies can appeal ZUS’s unfavorable decisions to court, hoping for a favorable ruling in line with current case law. However, such proceedings are time-consuming and require legal and/or tax advisory support, adding unnecessary complexity to an already difficult business environment.

Given the favorable rulings regarding both taxation and social security contributions, entrepreneurs who, based on administrative decisions, have been charged these payments have a good chance of obtaining refunds for overpaid taxes and/or ZUS contributions.

National e-Invoice System – Mandatory, But Not Yet. What’s Next for e-Invoice in Poland?

Posted on by kancelaria

The mandatory National e-Invoice System (KSeF) was supposed to be a revolution in the Polish invoicing system. Initially planned for the beginning of 2024, it has now been postponed due to technical issues until February 2026, when it is set to be implemented in a modified form.

What is KSeF?

KSeF is an IT system that enables the issuance and receipt of so-called structured invoices in a uniform XML format, with centralized tax oversight. Ultimately, it is intended to replace traditional paper and electronic invoices, and the data goes directly to tax authorities.

Since 2022, the system has been operating voluntarily—some entrepreneurs are already using it today, receiving, for example, a shorter VAT refund period (40 days instead of 60).

Why February 2026?

In January 2024, the Supreme Audit Office and accounting professionals raised alarms about deficiencies in performance testing, interface errors, and risks of failure. The Ministry of Finance, although it had long assured the system’s readiness, ultimately withdrew from the mandatory launch in June 2024 and announced consultations for a new timeline.

New Proposed Changes

From projects revealed by the Ministry of Finance in June 2025, the new version of the reform is expected to include:

  • Offline mode – the ability to issue invoices outside the system and later “send” them to KSeF,
  • QR codes on invoices – so that the recipient can verify and read them without needing an accounting system,
  • Additional deferrals for smaller taxpayers and “digitally excluded” taxpayers – The obligation to implement KSeF in February 2026 will only apply to large taxpayers whose sales exceeded PLN 200 million (including tax) in 2024, while other taxpayers will be required to implement the system in April 2026, and only from 2027 will the so-called digitally excluded taxpayers (those conducting transactions up to PLN 10,000 per month) be subject to the obligation,
  • Increase in the VAT exemption threshold – in 2026, the exemption threshold for VAT will increase from PLN 200,000 to PLN 240,000,
  • Postponement of penalties – penalties for violations related to KSeF will only be imposed starting January 1, 2027.

What Should Entrepreneurs Do Today?
Although the KSeF obligation has been postponed, it is worth preparing for its implementation:

✅ Verify and, if necessary, update accounting software – most popular systems (e.g., Comarch, Insert, Symfonia) already offer KSeF support,
✅ Test the issuance of structured e-invoices – even without the obligation,
✅ Implement emergency procedures – e.g., a protocol for lack of access to the system,
✅ Train accounting personnel – as handling XML files and communication with the KSeF API will become a daily routine.

Summary
KSeF remains one of the most important digitization projects for the tax authorities. The coming months will be crucial for refining its functionalities and enacting implementing regulations. Entrepreneurs who start preparations now will gain an advantage and avoid costly panic when the new deadline is announced.

New regulations on including periods of employment in the length of service.

Posted on by kancelaria

The Sejm of the Republic of Poland has adopted changes to the Labor Code that revolutionize the way employment seniority is calculated. Until now, only employment periods based on employment contracts were considered when determining the length of seniority. The new regulations significantly expand this concept.

Key changes include:

  • Inclusion of civil law contracts (periods in which an employee worked under contracts for specific work, service provision, or agency contracts will now be counted towards total work seniority),
  • Recognition of entrepreneurial activity (the time spent running a sole proprietorship will be included in the calculation of employment seniority),
  • Periods of cooperation with a person running a business,
  • Time suspending business activities to provide personal care for a child,
  • Periods of membership in agricultural production cooperatives and agricultural circle cooperatives, as well as documented periods of gainful employment abroad (other than employment).

These changes aim to treat employees more equitably, particularly those who have used various forms of employment throughout their careers. They may impact aspects such as vacation entitlement, the length of notice periods, and rights to anniversary awards in certain sectors.

For example, consider an employee who has 8 years of work seniority under an employment contract. Previously, he was entitled to 20 days of vacation per year. If he now documents an additional 3 years of running a sole proprietorship, his total work seniority will increase to 11 years. As a result, starting from 2026, he will be entitled to 26 days of vacation per year.

The Social Insurance Institution (ZUS) will play a key role in confirming these periods by issuing the relevant certificates. For periods not reported to ZUS and for work abroad, other supporting documents will be required.

The amendment will come into effect after it has been signed by the President of the Republic of Poland and published in the Journal of Laws. Employers will need to adjust their payroll systems to comply with the new regulations, which may require some organizational changes.