Regardless of turnover or the number of employees, any entrepreneur may be subject to inspection by state authorities. The Act of March 6, 2018, the Entrepreneurs' Law, clearly defines the rules for conducting inspections. Entrepreneurs can be inspected both traditionally and remotely. Remote inspections were a response to demand caused by restrictions related to the coronavirus pandemic. According to statistics from the Ministry of Finance, over 18,000 inspections were conducted in 2022, representing a more than 2 percent increase in inspections. A search of an entrepreneur's premises may also be conducted in accordance with Article 219 § 1 of the Code of Criminal Procedure in the event of detection, detention, or forced appearance of a suspect, as well as to find items that may constitute evidence in the case or are subject to seizure in criminal proceedings. In such cases, premises and other locations may be searched if there are reasonable grounds to believe that the suspect or the items mentioned are located there. Officers of these services and authorities may therefore search buildings and premises, and secure documents and electronic equipment.
Therefore, entrepreneurs are increasingly implementing Dawn-raid procedures, which are designed to establish a framework for handling unannounced inspections and searches. This type of policy is not a universal document and should be developed taking into account the specifics of the given entrepreneur, their business activity, and business model. This procedure should inform the company about the steps to be taken in the event of an unannounced visit by representatives of services and authorities.
The first point of contact in the event of an inspection or search is security and office staff. They should be instructed to allow officers in and verify their authority by presenting their official IDs, authorizations, and documents confirming the validity of the inspection or search. They should also immediately inform management of the incident. Therefore, the policy should specify the individuals who should be notified and provide their current contact information.
A good rule of thumb is to create an intervention team consisting of management, accountants, external lawyers, IT staff, and other necessary personnel. It's also good practice to appoint an on-site coordinator for this team, who will take over contact with the inspectors from the secretariat and security.
The procedure should also include information on informing employees about the situation and specifying rules, in particular the prohibition on destroying or deleting documents, rules for cooperation with officers, and instructions on rights and obligations, including the possibility of using the services of a lawyer. It is also important that employees thoroughly familiarize themselves with the content of the documents they are required to sign and that these documents reflect the actual state of affairs.
The procedure should also define the principles of supervision of activities performed by the services in the context of possible exceeding of their powers or going beyond legal provisions.
It is worth preparing an internal report after the inspection/search, which will be verified and from which appropriate conclusions will be drawn.
If you are wondering whether you are prepared for an inspection/search or if you see a need to implement the Dawn-raid procedure, please contact us.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of December 27, 2023
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