How to Avoid Reclassification of B2B Contracts into Employment Contracts? A Step-by-Step Guide for Employers

Changes to the powers of the National Labour Inspectorate (PIP) in 2026 mean a significant increase in the risk of B2B contracts and civil law contracts being challenged. In practice, what is written in the contract becomes less important, while the actual manner in which the cooperation is carried out becomes the determining factor.

For employers, this means a shift from a “document-based” approach to a “process-based” approach. In other words, a well-drafted contract is no longer enough. The cooperation must also be managed properly on a daily basis.

Below, we present a practical framework of actions that can help reduce the risk of a B2B arrangement being reclassified as an employment relationship.

Step 1: Conduct an Audit of All Contracts and the Actual Cooperation Model

The first and most important step is to compare the documentation with reality.

In practice, you need to answer the question: does the cooperation resemble an independent contractual relationship, or does it look more like employment?

The audit should cover not only the content of contracts but also the organisation of contractors’ work, communication methods, reporting systems, work tools and the structure of reporting relationships.

It is the “life of the organisation”, rather than contractual provisions, that most often forms the basis of PIP’s findings.

Step 2: Identify “Employment-Like” Elements in Everyday Cooperation

The next step is to identify areas that may be regarded as characteristics of an employment relationship.

Particular attention should be paid to situations where the contractor: works fixed hours imposed by the company, performs tasks at your company’s premises without a genuine alternative, is subject to ongoing supervision by a manager, reports work status on a continuous basis, and is integrated into the company’s organisational structure on the same basis as employees.

Each of these elements individually may not determine the outcome, but their accumulation significantly increases the likelihood of reclassification.

Step 3: Introduce Genuine Contractor Autonomy

Autonomy is a key element of a compliant B2B model.

This means that the contractor should have genuine freedom regarding the organisation of their work, including the choice of where and when to perform it and the method of carrying out the tasks.

From a compliance perspective, it is important that communication with the contractor focuses primarily on results rather than the way those results are achieved.

Instead of controlling the process, control the outcome.

Step 4: Change the Remuneration Model to One Based on Results

One of the most common mistakes is remunerating contractors in the same way as employees, namely on a monthly basis without linking payment to the results of their work.

Meanwhile, one of the key criteria distinguishing a B2B arrangement from employment is entrepreneurial risk and remuneration for results.

Therefore, remuneration should be linked to specific deliverables, projects or project milestones, rather than solely to the passage of time.

In the event of a dispute with PIP, it is also important to demonstrate that your B2B contractors bear genuine business risk associated with running their own business and are responsible for their services not only towards you but also towards third parties.

Step 5: Eliminate Elements of Organisational Subordination

One of the greatest risks is so-called “hidden subordination”.

In practice, employers should avoid situations in which the contractor: has an assigned supervisor within the organisational structure, is subject to employee performance evaluations, uses time-tracking systems, must obtain approval for absences, or is assessed based on attendance rather than results.

The contractor relationship should be managed on a project basis, not through a hierarchical structure.

Step 6: Allow Cooperation with Other Clients

An important element of business independence is having multiple clients.

For this reason, it is advisable to avoid exclusivity clauses and, wherever possible, allow contractors to provide services to other entities.

In practice, the absence of other clients does not automatically mean that an employment relationship exists, but it significantly increases the risk of such a classification.

Step 7: Separate Contractors from the Employee System

A mistake that is often overlooked in practice is the full integration of contractors into HR systems.

Contractors should not be treated as employees in terms of benefits, performance reviews or organisational structure.

A contractor should be visible within the organisation as an external service provider delivering a defined scope of services, rather than as a member of the team in the employment law sense.

This also applies to resources provided to employees, such as equipment, IT systems or software licences. As a rule, a B2B contractor should provide services using their own infrastructure.

Step 8: Implement Procedures and Training for Managers

The greatest risk arises not from contracts but from day-to-day operational decisions.

Therefore, it is essential to train managers so that they understand: how to assign tasks without controlling the manner in which they are performed, how to communicate expectations without creating a relationship of subordination, and how to avoid language characteristic of employment relationships.

In practice, management style is often what determines the outcome of an inspection.

Step 9: Document the Contractor’s Independence

In the event of an inspection, evidence is crucial.

For this reason, it is worth maintaining documentation confirming the independent nature of the cooperation, including project reports, confirmations of acceptance of deliverables, project-related correspondence and information regarding the contractor’s other clients.

A lack of documentation often works against the company, even where the cooperation was in fact properly structured.

Step 10: Regularly Update the Cooperation Model

Employment law and the practices of regulatory authorities are constantly evolving. A model that was considered safe a few years ago may now create significant risk.

For this reason, it is recommended to review contracts and cooperation practices periodically, preferably on an annual or semi-annual basis.

Summary

Avoiding the reclassification of a B2B arrangement into an employment contract is not the result of a single well-drafted contractual clause. It is the outcome of a coherent system: from contract structure, through the remuneration model, to the day-to-day actions of managers and HR teams.

In the new regulatory environment, the decisive factor is whether the company can demonstrate the contractor’s genuine independence – not only on paper, but also in practice.

Employers who implement the above steps significantly reduce the financial, tax and organisational risks associated with a potential PIP inspection.

It is worth acting proactively before the risk becomes a real problem.

If your company uses B2B contracts, contact us – we will help ensure that PIP does not reclassify them as employment contracts. The new regulations come into force on 8 July, so the clock is ticking!

Author