Employment contract, mandate contract, B2B: which one and when in 2026

The choice of form of employment is one of the first big decisions facing every business owner recruiting their first people. The Labour Code, the Civil Code and the Act on the Social Insurance System create three main paths: the employment contract (the safest for the employee, the most expensive for the company), the mandate contract / contract for specific work (cheaper, but with limited protection) and B2B cooperation (partner to partner, not employer to employee).

There is no single “best” form. Each suits a different situation. Below are specific criteria, amounts and traps for 2026.

Employment contract: the classic, but expensive

The employment contract is defined in the Labour Code (Article 22). The key features: the employee performs work personally, under direction, at a place and time set by the employer, for pay. If these features are present, the contract must be called an employment contract, whatever the parties want (the so-called civil-law fiction).

Costs and contributions (2026)

At the minimum wage of PLN 4,806 gross (from January 2026, one rate for the whole year):

| Item | Amount | |---------|-------| | Gross | PLN 4,806.00 | | Employee’s contributions (Social Insurance Institution (ZUS) + health) | about PLN 1,032 | | PIT advance (after PLN 250 deductible costs, PIT-2) | PLN 168 | | Employee’s net pay | PLN 3,605.85 | | Employer’s contributions (social + Labour Fund + Solidarity Fund + Guaranteed Employee Benefits Fund) | about PLN 984 | | Employer’s cost | about PLN 5,790 |

Advantages for the employee

• At least 20 days of leave (26 after 10 years of service)
• Sickness benefit from the first day of sick leave (80% or 100% of pay)
• Protection against dismissal (notice period, justification)
• The period counts towards length of service (pension, leave)
• Compulsory accident contributions + the Guaranteed Employee Benefits Fund (employer’s insolvency)

Disadvantages for the employer

• The highest insurance costs (about 20% of the employee’s gross pay in the form of employer’s contributions)
• The obligation to keep working time records, regulations (from 50 employees), health and safety
• Limited flexibility: it is hard to dismiss “without a reason”
• Full formal burdens (DRA, RCA, PIT-11, ZUS ZUA)

When it makes sense

1. Long-term, regular cooperation (more than 6 months)
2. A position requiring loyalty (salesperson, key account, manager)
3. Work under your direction in the office, on site, during your hours
4. Legally protected positions (work by pregnant women, by disabled people with subsidies from the State Fund for Rehabilitation of Disabled Persons (PFRON))

Mandate contract: flexibility with contributions

The mandate contract (Article 734 of the Civil Code) is a civil-law contract. The mandate-contract worker performs specified activities for pay, but without a relationship of subordination. In practice it is the form most often chosen for “non-permanent” work (one-off projects, extra work, students).

The question of ZUS contributions

Until 2016 mandate contracts were “cheap”, with ZUS only in part. From 2016 the rules tightened. In 2026:

| The mandate-contract worker’s situation | Compulsory contributions | |-------------------------|---------------------| | Only this one contract | Full social + health | | Has a second job with the minimum wage | Health only | | Student under 26 | No ZUS contributions (PIT only) | | Retiree, disability pensioner | Full social + health (sickness voluntary) | | A person running a sole trader business (has their own ZUS) | Health only from the mandate contract |

Minimum hourly rate

In 2026 the minimum hourly rate for mandate contracts is PLN 31.40 gross (Regulation of the Council of Ministers of 11 September 2025, Journal of Laws 2025, item 1242). The rate must be recorded, and the principal is obliged to confirm the number of hours worked.

Contract for specific work: watch out for checks

The contract for specific work (Article 627 of the Civil Code) concerns a specific result: designing, creating, producing a work (artistic, literary, IT). Unlike a mandate contract, it is as a rule not subject to ZUS contributions. Taxation: PIT with 20% deductible costs (or 50% for copyright up to PLN 120,000 a year).

BUT: since 2021 ZUS has actively checked contracts for specific work. Each must be reported within 7 days (form ZUS RUD). In an inspection ZUS often reclassifies a contract for specific work as a mandate contract (and charges arrears of contributions + interest + penalties). Safe contracts for specific work are: translating a book, recording an album, a graphic design. Dangerous ones: “cleaning the office every week”, “customer service”, “writing code to order”.

When a mandate contract makes sense

1. Project work (1–3 months, a defined scope)
2. Seasonal work (Christmas trade, summer construction)
3. A person who already has another job (then only the health contribution)
4. Students under 26 (zero ZUS contributions)
5. Fees and one-off tasks

B2B: a partner, not an employee

A B2B contract is cooperation between two business entities: your company and the contractor’s sole trader business or company. Each side has its own accounting, ZUS, PIT and VAT. The contractor issues an invoice, and you pay it and put it in costs.

Costs for you (the principal)

No ZUS contributions, no PIT (the advances lie with the contractor). The only cost = the gross amount from the invoice. If VAT, then input VAT to be deducted.

Example: the contractor issues an invoice for PLN 10,000 + 23% VAT = PLN 12,300. Net cost for you = PLN 10,000 (a tax-deductible cost). The VAT paid of PLN 2,300 you deduct in the JPK_V7 (the monthly file with the VAT settlement), so the net burden is PLN 10,000.

Costs for the contractor

The B2B contractor (a sole trader business) pays their own ZUS contributions (full ZUS in 2026: social contributions of PLN 1,788.29 a month without sickness, plus the health insurance contribution, minimum PLN 432.54; preferential ZUS in the first 24 months: PLN 420.86 of social contributions, plus health) + PIT + VAT. That is why the B2B rate is higher than net pay under an employment contract: the contractor covers their own burdens.

The “hidden employment relationship” trap

If the B2B contractor:

• Works in your office
• During your hours
• Under your direction
• Only for you (has no other clients)
• Receives the same pay as before under an employment contract

…the tax office and the National Labour Inspectorate (PIP) may treat the contract as a “hidden employment relationship” and reclassify it. The consequences: arrears of ZUS contributions, penalties, interest.

When B2B makes sense

1. Highly qualified specialists (programmer, consultant, expert)
2. Many clients (the contractor also works for other companies)
3. Remote work, without control of hours (freedom of organisation)
4. Rates above PLN 15,000 gross / month, where there is a saving on contributions for both sides
5. A long-term relationship, but without an employment relationship (consultants, freelancers)

A comparison in a table

| Feature | Employment contract | Mandate contract | B2B | |-------|---------------|----------|-----| | Legal basis | Labour Code | Civil Code | Civil Code + VAT Act | | Employer’s ZUS contributions | Yes (~20%) | Yes (usually) | No | | Protection on notice | Yes (notice period) | Minimal | None | | Leave | 20–26 days | None (contract + bonus) | None | | Working time records | Compulsory | Voluntary | Not applicable | | Initial health and safety training | Compulsory | Usually not | Not applicable | | Minimum | PLN 4,806 gross | PLN 31.40 / h | Any | | Tax settlement | PIT-11 from the employer | PIT-11 from the principal | The contractor does it | | On insolvency | Protection by the Guaranteed Employee Benefits Fund | None | None | | Flexibility | Low | Medium | High |

How to decide: a matrix

| Situation | Recommendation | |----------|--------------| | First office employee, long-term | Employment contract | | A student for 20 h / week in the summer | Mandate contract (no ZUS) | | A retiree helping with accounting 10 h / month | Mandate contract | | A programmer with their own company and many clients | B2B | | A key account manager with flexible targets | Employment contract | | A graphic designer for a 3-month project | Contract for specific work or B2B | | A “technical” employee with protection | Employment contract | | A consultant on implementing a business management system (ERP) | B2B |

Summary

The form of employment is part of the psychological contract with the employee. It defines expectations, duties and risks on both sides. A well-chosen form lowers costs and increases flexibility. A badly chosen one ends in an inspection by PIP or ZUS. At Profais we help in the area of HR and payroll. Choosing the form of employment in a specific situation often requires legal or tax advice, which is provided by tax advisers and legal advisers (in line with the Tax Advisory Act). If you are planning your first hire, see also the checklist for moving from sole trader to employer.

Sources: pip.gov.pl, zus.pl, Labour Code Articles 22, 29, Civil Code Articles 627, 734.