Reform of the National Labor Inspectorate – further changes in the draft law

The Government Legislation Centre has published a new version of the bill granting the National Labor Inspectorate the authority to issue decisions converting civil law contracts into employment contracts. Below, we present the most important changes.

Inspector's decision or court action

The draft law introduces a provision granting the district labour inspector the ability to choose one of two modes of action:

• issuing an administrative decision confirming the existence of an employment relationship, or
• filing a lawsuit to determine the existence of an employment relationship.

This solution significantly expands the authority’s discretion and may influence the inspection practices of the National Labour Inspectorate.

Establishing an employment relationship for a maximum of three years back

The bill adds a provision limiting the period for which an inspector will be able to determine the existence of an employment relationship.
This period cannot exceed three years from the date the proceedings are initiated.

Consequences of annulling a decision – a controversial provision

To date, the impact of a PIP decision after it is repealed has been highly controversial. The current draft introduces the principle that:

• despite the annulment of the decision by the Chief Labor Inspector or the court,
• it is considered that the employment relationship existed from the date of delivery of the decision to the employer until the date of its annulment .

In practice, this means legalizing the effects of a decision, even if it was flawed or removed from legal circulation. This solution will undoubtedly be the subject of further discussion.

Possibility of waiving the immediate enforceability requirement

The draft provides for the possibility of waiving the immediate enforceability of a decision if its execution could cause significant and irreversible consequences for the employer or the person concerned.

The authority to waive the rigor is held by:

• court.
• Chief Labor Inspector,

Claim for compensation for a decision issued unlawfully

The draft law introduces the possibility of filing a compensation claim already at the stage of appeal against the decision of the Chief Labour Inspector.

If a party has suffered damages due to an unlawful decision, the labor court hearing the appeal may also rule on this claim. The State Treasury is liable.

When will the law come into force?

The planned date of entry into force of the changes remains unchanged – according to the draft, the act is to enter into force on 1 January 2026.

We will monitor the legislative process and inform you about further modifications to the project.

This article is for informational purposes only and does not constitute legal advice.
The law is current as of November 18, 2025.