HR compliance when scaling a company. How to streamline processes before chaos turns into risk

For entrepreneurs Employment law Whistleblowers

July 2026

HR compliance when scaling a company. How to streamline processes before chaos turns into risk

9 minutes

Your company has workplace regulations, contracts, a remote work policy and a whistleblowing procedure. On paper, everything looks good. But does the sales manager make overtime decisions in the same way as the IT manager? Do B2B contractors really work differently from employees? Does anyone actually know how to submit a whistleblowing report?

If the answer is “I don’t know” — you have exactly the problem that the National Labour Inspectorate reform and the Whistleblower Protection Act are turning into a tangible financial risk.

The Act of 11 March 2026 amending the Act on the National Labour Inspectorate (Journal of Laws 2026, item 473) entered into force in two stages — on 8 April and 8 July 2026. From the latter date, a district labour inspector may issue an administrative decision establishing the existence of an employment relationship in place of a sham civil-law or B2B contract. The maximum fines for offences against employee rights have increased from 30 000 zł to 60 000 zł, and in selected categories to 90 000 zł.

National Labour Inspectorate data for 2024 speaks for itself: pay-related irregularities were identified in one in four inspections, while the total value of disclosed wage arrears amounted to approximately 268 million zł — twice as much as the previous year.

In this article, I will show where the gap between HR documentation and organisational practice comes from, what risks it creates when scaling, and what you can do to close it — before an inspector, investor or employment tribunal does it for you.

Key terms worth knowing

Before we get to the heart of the matter, here are explanations of several terms used later in the article.

Where the gap between HR documents and practice comes from

Growing companies rarely have a problem with missing documents. They have workplace regulations, contracts and policies. The problem is that these documents were created at a different stage of the organisation’s development — and since then, no one has checked whether they reflect how the company actually operates.

The gap arises in three areas:

1. The employment model does not reflect reality. A B2B contractor works in the company’s office, uses company equipment, reports to a manager and attends daily stand-ups. On paper, they are an independent business owner. To a National Labour Inspectorate inspector — they are an employee.

2. Managers make decisions without consistent standards. In one department, overtime is calculated “by eye”; in another, it is handled formally. One manager dismisses an employee by email, while another prepares the proper documentation. Inconsistency = a risk of allegations of unequal treatment.

3. Procedures exist, but no one follows them. The whistleblowing procedure sits on the intranet. The anti-bullying procedure was created two years ago, and no one remembers who wrote it. Employees do not know how to use them. Managers do not understand their role.

This gap always comes to light at the worst possible time: during a National Labour Inspectorate inspection, a dispute with a former employee, a whistleblowing report, an allegation of workplace bullying or due diligence before a funding round.

The 2026 National Labour Inspectorate reform — what changes from 8 July

The Act of 11 March 2026 does not change the definition of an employment relationship under Article 22 of the Labour Code. It does, however, change the enforcement tools for existing regulations — in a way that directly affects companies with poorly structured employment models.

New procedure for establishing an employment relationship

From 8 July 2026, a multi-stage procedure applies:

1. An inspector conducts an inspection (including remotely — by analysing login records, schedules, messaging platforms and electronic documents).
2. The inspector hears both parties.
3. The inspector orders the employer to remedy the violations — for example, by concluding an employment contract.
4. If the order is not complied with, the district labour inspector issues an administrative decision establishing the existence of an employment relationship or brings an action before a court.
5. An appeal to an employment tribunal — the deadline is 30 days, and the case should generally be heard within 30 days.

As a rule, filing an appeal suspends enforcement of the decision — but the court may grant interim relief to secure the employee’s claims for the duration of the proceedings.

Higher fines from 8 July 2026

Period of immunity from liability for offences

A transitional period runs from 8 July 2026 to 8 July 2027: employers that voluntarily convert sham civil-law contracts into employment contracts will not be held liable for offences arising from past violations. However, this does not release them from the obligation to settle outstanding social security contributions and taxes.

Individual interpretations by the Chief Labour Inspector

A new option: you may apply to the Chief Labour Inspector for an interpretation as to whether the described cooperation model constitutes an employment relationship. The fee is 40 zł, and the response deadline is 30 days. The interpretation is binding on National Labour Inspectorate authorities and provides protection against penalties.

Contact us — we will help you assess whether your B2B contracts need to be revised before 8 July 2027.

The Whistleblower Protection Act — an obligation that cannot exist only on paper

Since 25 September 2024, companies employing at least 50 people have been required to implement an internal reporting system. It is not enough to have a written procedure — the mechanism must actually work.

Minimum procedural requirements (Articles 25–28 of the Act)

1. Appoint a person or entity to receive reports (with written authorisation and a duty of confidentiality).
2. Provide a reporting channel — at least orally or in writing (including electronically).
3. Acknowledge receipt of a report within 7 days.
4. Provide feedback within 3 months of acknowledgement.
5. Hold a meeting at the whistleblower’s request — within 14 days.
6. Maintain a register of reports (retention period: 3 years).
7. Consult trade unions or employee representatives.
8. Bring the procedure into force — 7 days after notifying employees.

Penalties for violations

A whistleblowing procedure that exists only on the intranet and is never used does not meet the statutory requirements. Check the employer’s obligations regarding whistleblower protection — if employees do not know how to report concerns and managers do not understand their role, the organisation is not prepared for a real report.

How much disorganised HR costs — the actual figures

HR risks only come to light when an employee leaves, a conflict arises, a whistleblowing report is submitted, a complaint is made to the National Labour Inspectorate, an allegation of workplace bullying is raised or due diligence begins. Never during calm periods.

Reclassification of B2B contracts — an illustrative scenario

An IT company engages 20 contractors on B2B contracts with average remuneration of 15 000 zł net per month. Following a National Labour Inspectorate inspection, the contracts are reclassified as employment relationships for the previous 3 years.

Estimated liabilities:

1. Outstanding social security contributions (retirement, disability, health, accident, Labour Fund and Guaranteed Employee Benefits Fund contributions) — more than 5 million zł in contributions alone.
2. Interest on outstanding social security contributions (calculated from the due date of each contribution).
3. Outstanding personal income tax advances — payable by the employer as the tax remitter.
4. Employee claims: payment in lieu of unused holiday, overtime pay and severance payments.
5. Fine for the offence: up to 60 000 zł (from 8 July 2026).

Impact on due diligence

In M&A transactions, disorganised HR leads to valuation adjustments. An illustrative scenario: a company valued at 40 million zł with HR risks estimated at 10 million zł — the investor reduces the price to 30 million zł and requires 5 million zł to be held in escrow until the risks are resolved.

Workplace bullying and discrimination — rising costs

Court data confirms the trend: the number of employment relationship cases increased from 26 thousand in 2022 to 38 thousand in 2023 — an increase of 47%. In 2024, the average time taken to hear a case was 8.8 months in a district court and 11.4 months in a regional court.

What to check first — a priority map

You do not have to reorganise all of HR at once. Start with the highest-risk areas and the shortest time horizon.

Priority 1 — act immediately

1. Gap analysis — compare workplace regulations, contracts and policies with how managers actually make decisions about working time, remote work, dismissals and changes to employment terms. Look for discrepancies.
2. Employment model review — verify whether people working under B2B and mandate contracts actually work in a way that reflects those arrangements. Check: who gives instructions, whether there is a fixed place and time of work, whether the contractor uses company equipment and whether they attend team meetings like an employee.
3. Review of the whistleblowing procedure — check whether employees know how to report concerns, whether managers understand their role and whether the procedure is linked to other HR processes (workplace bullying, discrimination) rather than existing as a standalone document.
4. HR risk map — divide risks into three categories: critical (immediate action), urgent (1–3 months) and operational (phased improvements). Assign someone responsible for each area.

Priority 2 — plan within 1–3 months

5. Management decision-making standards — develop clear procedures for employee dismissals, changes to employment terms, responding to conflicts and organising remote work. Decisions should not depend on the individual manager, but on a consistent procedure.
6. Manager training — most HR risks arise where everyday management decisions meet a lack of awareness of their legal consequences. Training should cover working time, workplace bullying, unequal treatment, documentation and working with contractors.
7. Documentation updates — contracts, workplace regulations, policies and clauses must reflect the current legal framework and how the organisation actually operates.

Priority 3 — implement in stages

8. Procedure for responding to allegations of workplace bullying or discrimination — covering documentation, communication with those involved, protection of the person making the report and clear steps for HR and the management board.
9. Operational checklists for onboarding, offboarding, changes to employment terms and remote work — transferring knowledge from the minds of individuals into a repeatable standard.

How courts assess whether B2B arrangements constitute employment relationships

The National Labour Inspectorate reform does not change the assessment criteria — it only changes who can issue a decision. Courts have applied the same criteria for years, and their case law indicates the direction inspectors will take.

Criteria determining classification

The judgment of the Regional Court in Łódź (VIII U 1421/23 of 9 October 2024) upheld the reclassification of a B2B contract as an employment relationship where the contractor worked fixed hours, under a manager’s direction and using company equipment. By contrast, the Regional Court in Gliwice (VIII U 1160/21 of 27 January 2022) found no characteristics of an employment relationship where the contractor independently decided when, where and how to perform the tasks.

Conclusion: the name of the contract does not protect you. What matters is how the working relationship is actually organised.

Typical scenarios — where risks most often come to light

Scenario 1: Rapid growth before a funding round. A technology company has grown from 25 to 90 people. Some team members work on B2B contracts, others under employment contracts, and many work remotely. Documents are inconsistent, and managers apply different rules. The founder is concerned about risks ahead of due diligence. Following a diagnostic review, the company knows which areas to improve — and streamlines its standards without slowing growth.

Scenario 2: A mature company with many managers. Decisions on changes to employment terms, working time and dismissals are handled differently depending on the department. A process review allows the management board to regain control over employment risk. HR receives clear procedures and checklists instead of constantly fighting fires.

Scenario 3: A whistleblowing procedure that exists only on paper. The document exists, but employees do not know how to use it. Managers do not understand their role. Integrating the procedure with HR processes and management accountability turns a formal obligation into a mechanism that actually works.

Scenario 4: An escalating conflict with no response procedure. Reports of unequal treatment and inappropriate conduct by a manager emerge in one team. The company has no response procedure. Designing a safe process reduces the risk of escalation and establishes a standard for the future.

How we can help

We treat employment law as part of organisational management, not merely as an HR matter. We work with companies at real moments of change: team growth, conflicts, reorganisations and investor entry.

We combine employment law with the broader business context — IP, ownership structure and growth plans — ensuring that HR decisions are aligned with the company’s direction.

Our HR compliance support includes:

1. Diagnostics and audits — comparing documentation with actual organisational practice and identifying discrepancies and areas of risk.
2. Employment model reviews — verifying B2B contracts, mandate contracts and employment contracts for compliance with Article 22 of the Labour Code and employment court case law.
3. Risk report with recommendations — a specific list of actions divided by priority, including an estimate of the cost of inaction and an implementation schedule.
4. Documentation updates — contracts, workplace regulations, policies and clauses tailored to the current legal framework and the way the company operates.
5. Procedure implementation — whistleblowing, workplace bullying, discrimination, remote work, onboarding and offboarding — as a coherent system rather than separate documents.
6. Training for managers and HR — on employment-related responsibilities, working with contractors, responding to conflicts and preparing for National Labour Inspectorate inspections.
7. HR due diligence — preparing the company for a funding round or M&A transaction.
8. Support during National Labour Inspectorate inspections — from the first day until the proceedings are concluded.

We do not implement “standard policies”. We design rules tailored to your organisation’s operating model.

HR compliance as a prerequisite for safe growth

A company does not buy regulatory compliance. It buys peace of mind for the management board, order for HR and the ability to scale the team without hidden risks.

The National Labour Inspectorate reform, with higher fines (up to 90 000 zł), administrative decisions establishing employment relationships and remote inspections, changes the rules of the game from 8 July 2026. The Whistleblower Protection Act requires a reporting system that actually works, not a document sitting on the intranet. Employment courts are hearing more and more cases — an increase of 47% between 2022 and 2023.

Streamlining HR does not have to mean a project lasting many months. Start with diagnostics, set priorities and implement changes in stages. The sooner you do it, the lower your risk will be — during an inspection, a dispute, a whistleblowing report or discussions with an investor.

If you want to find out where your company has the biggest gaps between HR documents and actual practice — contact us. We will show you what to fix first.

Frequently asked questions

My company has grown from 20 to 80 people — how can I tell whether our HR documents are still up to date? Carry out a diagnostic review: compare workplace regulations, contracts and policies with how managers actually make decisions. Look for discrepancies between what the documents say and everyday practice — these are exactly the differences that create risks during a National Labour Inspectorate inspection, a dispute or due diligence.

Can the National Labour Inspectorate reform really lead to our B2B contracts being reclassified as employment contracts? Yes. From 8 July 2026, a district labour inspector may issue an administrative decision establishing the existence of an employment relationship if the actual manner in which the work is performed has the characteristics listed in Article 22 of the Labour Code — regardless of the name of the contract. Illustrative estimates of the cost of reclassifying 20 B2B contracts for the previous 3 years indicate liabilities exceeding 5 million zł in outstanding contributions alone.

We have implemented a whistleblowing procedure, but no one uses it — is that enough? No. The Act requires a mechanism that actually works, not merely a document. Check whether employees know how to make reports, whether managers understand their role, whether reporting channels are accessible and whether the procedure is linked to other HR processes (workplace bullying, discrimination). Failure to implement a procedure is punishable by a fine of up to 5 000 zł, but retaliation against a whistleblower is punishable by imprisonment for up to 3 years.

What exactly will an investor review in our HR during due diligence? The investor will examine: the employment model (risk of reclassifying B2B arrangements), the completeness and currency of documentation, consistency between workplace regulations and practice, outstanding social security contributions and taxes, pending disputes, anti-bullying and whistleblowing procedures, and the organisation of remote work. Every disorganised area may result in a valuation adjustment or an escrow requirement.

Do I need to reorganise all of HR immediately, or can I start with selected areas? You can — and should — start with the highest-risk areas. Carry out a diagnostic review, create a risk map divided into priorities (critical, urgent and operational), and implement changes in stages. An audit and risk report usually take weeks, not months.

How can I take advantage of the period of immunity from liability for offences? A transitional period runs from 8 July 2026 to 8 July 2027. If you voluntarily convert sham civil-law contracts into employment contracts during this period, you will not be held liable for offences arising from past violations. However, you must settle outstanding social security contributions and taxes. It is worth obtaining an individual interpretation from the Chief Labour Inspector (fee: 40 zł, response deadline: 30 days) to confirm the classification of your contracts.