Wolf Theiss Poland’s labor practice has seen a rise in redundancies and reorganizations, especially in the manufacturing and automotive sectors in Poland, along with more internal investigations due to new whistleblower laws, according to Wolf Theiss Counsel Agnieszka Nowak-Blaszczak. Future work is expected to increase with the implementation of the EU Pay Transparency Directive.
CEELM: What’s been keeping your firm’s labor practice busy over the last 12 months?
Nowak-Blaszczak: Over the past 12 months, we have observed an increase in collective redundancies and reorganizations in Poland. These redundancies affect a variety of sectors, particularly manufacturing and automotive. Several of our clients have already decided or are considering either ceasing or scaling down their operations in Poland.
We have also noticed more internal investigations lately. Since the whistleblower protection regulations came into force on September 25, 2024, and with the introduction of internal reporting channels, more employees are coming forward with reports. This surge may also be tied to proposed changes to the definition of mobbing in the Labor Code, which would broaden it to cover a wider range of undesirable behavior. These proposals have been a topic of public debate for several months. As a result, employees are increasingly aware of these protections and more inclined to report misconduct. However, in the cases we have advised on, the reports usually did not concern violations covered by the Whistleblower Protection Act itself, but rather issues like mobbing or discrimination, often raised by individuals whose employment had already been terminated. In most instances, the allegations were not substantiated and did not lead to legal proceedings.
Moreover, we are receiving more inquiries about the risk of reclassification of civil law contracts into employment contracts and strategies to mitigate this risk.
CEELM: What’s been driving that pipeline of work?
Nowak-Blaszczak: We see that reorganizations are often linked to plans to isolate non-core businesses, sell these parts of the business, and form part of broader global restructuring processes. In that light, we also observe a rise in advisory work related to acquiring businesses with part of their operations in Poland, and we expect this trend to continue in the coming months.
Moreover, a draft law was presented by the Ministry of Family, Labor, and Social Policy that proposed to grant the National Labor Inspectorate the power to convert civil law contracts into employment contracts by administrative decision. The proposed effective date is January 1, 2026. The planned changes require employers to carefully review their workforce structure, assess reclassification risks, and, where appropriate, change the basis of engagement to avoid legal exposure. Many companies are already conducting audits to review the use and practical execution of the civil law contracts.
CEELM: What’s the outlook for the next 12 months? increase/decrease and why?
Nowak-Blaszczak: In view of the forthcoming implementation of the EU Pay Transparency Directive, which requires employers to establish transparent, precise, and equitable compensation mechanisms, we anticipate an increase in assignments related to conducting pay audits, adjusting compensation structures, and addressing potential pay gaps. A great number of employers have yet to initiate work in this area.
Additionally, as soon as the final version of the amendment to the Labor Code changing the provisions on mobbing is known, employers will have to review existing policies, develop procedures to prevent undesirable behavior, introduce corrective measures, and provide support to victims. There is likely to be a significant amount of demand for advisory services in this area.
