An employment contract is one of the most common forms of employment, the terms of which are defined by the Labor Code. Individuals employed under an employment contract enjoy numerous benefits, such as paid vacation time, the right to sick leave, and protection against dismissal. Employers are required to cover social security contributions and ensure regulated working hours. Employees must comply with occupational health and safety regulations and work regulations, and their rights are strictly protected by law.
A B2B contract, on the other hand, is a civil law agreement concluded between two entities conducting business activity. Individuals working under a B2B contract receive a higher net salary but are responsible for paying their own contributions and taxes. They are not legally entitled to paid leave or other benefits, making the relationship with the "employer" more flexible and less formal.
What is worth knowing before switching from UoP to B2B?
The decision to switch from an employment contract to a B2B contract can be beneficial, but requires careful consideration. Many people make this transition for financial reasons, as self-employed individuals often earn more. This type of collaboration is particularly popular among creative and technical professionals, such as programmers, copywriters, and designers.
Before making a decision, it's worth assessing the cost-effectiveness of this solution. It's important to remember that resigning from an employment contract means losing certain benefits, such as paid leave and sick pay. Self-employed workers must also pay their own social security contributions, which introduces additional obligations.
What do you gain with B2B?
By choosing to become self-employed, you can deduct business-related expenses. You can also deduct expenses like internet subscriptions, car rentals, fuel, and electronics. Furthermore, B2B offers greater flexibility in work organization, as you typically don't have to work set hours, giving you the freedom to manage your time (though it's worth clarifying this when signing the contract).
Planned changes
However, providing work under a B2B contract carries the risk of reclassifying the contract as an employment contract, especially in light of the recently announced reforms by the Ministry of Labor and Social Policy. The authorities plan to strengthen oversight of employment relationships and increase the powers of the National Labor Inspectorate (PIP) to monitor employment irregularities. These inspections will aim to eliminate abuses, such as the improper use of B2B contracts, which de facto function as employment contracts.
In this context, the decision to remain on an employment contract may prove more beneficial. An employment contract provides greater job security and stability, as well as access to benefits not available in B2B. Employees on an employment contract are better protected against the risk of job loss and can benefit from various forms of support, such as sick pay and paid leave. In light of planned reforms and tightening controls that may impact the self-employed, it's worth considering whether the flexibility of B2B is worth the risks and associated responsibilities.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of September 6, 2024
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