ABC of PIP inspections - what to remember and how does a PIP inspection operate?

• Scope of inspection

Issues related to PIP inspections, as well as the inspector’s rights and obligations and those of the inspected entity, are regulated by the State Labour Inspection Act of 13 April 2007. 

Employers should, in particular, bear in mind the need for the labour inspector to present his credentials and to carefully analyse the inspection authorisation, which, as a rule, the inspector should present before starting the inspection.

Only exceptionally, in emergency inspections, is it possible to provide the authorisation within seven days from the date of inspection commencement. Such situations usually involve inspections associated with potential irregularities that could pose a real threat to the health and life of employees, e.g. in the case of non-compliance with health and safety regulations.

The authorisation determines the scope of the inspection, while also establishing its legal limits. Therefore, as a rule, the inspector, should not include issues that do not relate to the subject of the inspection within his activities. Such an action entitles the inspected entity to refuse to provide explanations on a subject not specified in the authorisation, and reference to this subject in the post-inspection report may constitute the basis for employer’s objections.

• Conduct of the inspection

To ensure that the PIP inspection runs as smoothly as possible, it is advisable to appoint an employer representative (or representatives) for this purpose. This should be someone who is as familiar as possible with the scope covered by the inspection (e.g. accounting for working time or employment of foreign citizens), and who is aware of the rights and obligations of both the inspector and the represented entity. This is because such person’s role is, on the one hand, to cooperate with the inspector and, on the other, to audit the propriety of the inspector's actions and to react should the inspector’s powers be exceeded. Under no circumstances should the inspection be obstructed - such an act is penalised under the Criminal Code (Article 225 § 2 of the Criminal Code).

The basic rights of a labour inspector include the right to:

• freely enter the premises and facilities of the inspected entity,
• carry out visual inspections of facilities, premises, workplaces, machinery and equipment and the course of technological and work processes,
• demand written and oral information from the inspected entity and from all employees (present or past, irrespective of the legal basis of their employment) on matters covered by the inspection, as well as summoning and questioning such persons in connection with the inspection,
• request the submission of personal files and all documents related to the work of employees or persons carrying on work other than on an employment basis - the most frequently verified documents include:
  • employment contracts and civil law contracts with employees,
  • time sheets
  • payroll and proof of payment of wages,
  • documents regarding annual leave and other absences,
  • permits and declarations concerning employment of foreigners,
  • notifications to ZUS.

End of the inspection - what if the employer does not agree with PIP’s findings?

If the inspector finds no irregularities, the result of the inspection is documented in an official note briefly describing factual findings from the inspection.

Should the inspector identify irregularities, he will draw-up a post-inspection report, which, as a rule, is signed by both the inspector and the inspected entity (refusal to sign the report does not constitute an obstacle to relevant legal measures specified by the Act being applied with respect to the employer).

The labour inspector leaves a copy of both the official note and the post-inspection report with the inspected entity.

Importantly, before signing the inspection report, the inspected entity has the right to raise justified objections to respective findings. These may concern both the factual findings, the course of the inspection (e.g. exceeding the scope of the inspection authorisation) and the inspector’s interpretation of the law.

Objections allow the employer the opportunity to defend its position and avoid potential sanctions. However, the time limit for raising them is relatively short (seven days from the date the report is presented). It is, therefore, worth keeping an eye on the course of the inspection, as well as immediately and meticulously reading the report.

If the inspected entity raises objections, the labour inspector is obliged to examine them and, if they are found justified, to amend or supplement the relevant part of the protocol. If, on the other hand, the objections are rejected, the labour inspector may take certain actions on the basis of its findings, such as:

• bringing an action to establish the existence of an employment relationship,
• summoning the inspected entity to rectify the shortcomings identified in the course of the inspection,
• issuing an administrative decision prohibiting or ordering specific activity on the part of the inspected entity.

The last of these constitutes authoritative PIP activity to which standard principles of administrative audit apply. This means that the inspected entity has the right to lodge an appeal against PIP's prohibition/order to the district labour inspector. If, on the other hand, such an appeal is not upheld, judicial-administrative recourse is available, i.e. the possibility of filing a complaint to the Provincial Administrative Court.

PIP’s inspection plans in 2025 - what will the 55,000 inspections concern?

As indicated at the outset, PIP intends to carry out 55,000 inspections this year and to focus mainly on the legality of work and residence of foreign citizens in Poland. This issue has been given strategic and paramount importance, it having been announced that inspections at entities employing large groups of foreign citizens will be carried out by entire teams of inspectors and, where necessary, also with the support of the Border Guard.

It should be presumed that PIP's approach stems from the wave of changes in immigration law (and the need to verify whether employers are finding their way in the changed legal reality), as well as from the worrying statistics from inspections in recent years.

According to the report on the activities of the State Labour Inspectorate, 9,138 inspections were carried out in 2023, in which the legality of employment of almost 40,000 foreigners was verified. Almost 30% of the inspections resulted in the finding of irregularities, which were mostly due to the lack of required work permit, i.e. not having one at all, using an incorrect form of employment legalisation or working contrary to the conditions specified in the permit.

Against the backdrop of discussions around the Pay Transparency Directive and addressing social expectations, PIP is also planning to look into the issue of equality (or rather, possible inequality) of wages with a particular focus on the gender pay gap.

In addition, PIP's area of special interest is also expected to include:

• protection of whistleblowers,
• mobbing,
• a package of work-life balance solutions, focusing mainly on additional entitlements related to parenthood,
• Employee Capital Plans,
• platform work.

This is a sure indication of which areas of employment are worth reviewing for compliance with the law to be best prepared for a possible PIP inspection.

On the other hand, PIP will invariably, as it does every year, focus on checking employers' compliance with other fundamental labour law provisions that should not escape the attention of entities potentially undergoing inspection. This applies, in particular, to obligations related to working time, payment of remuneration, as well as the granting of all other pecuniary and non-pecuniary benefits to employees.

Aleksandra Wójcik