Revision of the National Reconstruction Plan: proposal to give the National Labour Inspectorate (PIP) the right to independently convert civil law contracts into employment contracts? - Labour and employment law

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28 January 2025

Revision of the National Reconstruction Plan: proposal to give the National Labour Inspectorate (PIP) the right to independently convert civil law contracts into employment contracts?

The government plans to strengthen the powers of the National Labour Inspectorate (PIP) by empowering inspectors to independently convert civil law contracts into employment contracts, if they find that the law has been circumvented.

The inspector would issue an administrative decision, and the employer would be able to appeal against it to a labour court. This proposal is part of a revision of the National Reconstruction Plan (KPO) and aims to reduce segmentation in the labour market and increase social security contributions for employees. The plan is that in exchange for waiving the full rate of contributions on civil law contracts, PIP’s resources and powers would be strengthened. The Council of Ministers is to consider the draft amendments on 28 January, and a formal application to revise the KPO will be submitted to the European Commission by the end of January 2025.