Changes in the labour market – new powers of the National Labour Inspectorate in 2026?

The new regulations will greatly affect both employers and employees/contractors and their obligations towards revenue and social insurance authorities. 

If an inspector concludes that the working conditions fit the definition of an employment relationship, the inspector will be allowed to issue an administrative decision which:

According to the newest version of the bill, the National Labour Inspectorate (NLI) will have the power to issue a decision ascertaining an employment relationship not only if there is a formal contract, but also whenever an individual actually provides work. This means than an administrative decision may be issued even if there is no formal contract. 

Moreover, the NLI will get new inspection tools, including the permission for remote inspections, or electronic procurement of documents. At the same time, the National Labour Inspectorate, the National Revenue Administration and the Social Insurance Institution are to cooperate more tightly to help them better pick entities for inspection. The maximum fine the NLI may impose in a penalty-ticket procedure will be doubled.

The new act is expected to take effect as from 1 January 2026. 

The NLI’s decision will have legal effects from the time it is served, which means that the employer must treat the individual concerned as an employee right from that moment. This has profound tax, social insurance and labour law implications. 

According to the bill, even if an employer appeals against the decision, taxes and social insurance contributions will be accounted for according to the rules applicable to employees throughout the administrative and later court proceedings. The amended act adds a new Article 4777h to the Code of Civil Procedure. If the court finds the decision wrong, the employment relationship will be deemed to have lasted from the date the decision was served until the court judgment became final and non-appealable, that is, the whole period in which the decision was executed. In practice, this may translate into years. And even if the court judgment is in favour of the employer, there will be no legal remedy to revert the effects of employment in that period. At this point, we are advising you only about a legislative bill. The final regulations may change and their entry into force depends on further legislative work. 

If you wonder how the proposed legislation may affect your business, what risks it may trigger and how to get ready, you are welcome to contact our experts. We would be glad to examine your current situation and advise you on the best steps to take. 

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