Choosing between a B2B contract and an Employment Contract (UoP) is more than a legal formality. It impacts taxation, benefits, flexibility, and compliance.

Understanding Contract Types in Poland

B2B Contract

A B2B (Business-to-Business) contract involves a self-employed individual providing services to a company. Governed by the Civil Code, it offers flexibility but requires the contractor to manage their own taxes and social security contributions.

Employment Contract (UoP)

An Employment Contract, also called an UoP (Polish Umowa o Pracę) establishes a formal employer-employee relationship under the Labor Code. It provides job security, benefits, and employer-managed tax and social security contributions.

Key Differences Between B2B and Employment Contracts

Let’s start with a clear-cut comparison:

Feature	B2B Contract	Employment Contract (UoP)
Legal Framework	Civil Code	Labor Code
Taxation	Self-managed, flat-rate, or lump-sum	Employer-managed, progressive rates
Social Security (ZUS)	Contractors pay contributions	Employer deducts and pays contributions
Benefits	Negotiable	Mandatory (paid leave, sick days, etc.)
Termination	As per contract terms	Regulated by the Labour Code
Flexibility	High	Moderate
Misclassification Risk	High if not properly structured	Low

Financial Comparison Example

Contract Type	Gross Monthly Cost to Employer	Net Pay to Individual	Additional Costs
B2B	€3,000	~€2,400	Invoicing, VAT, self-managed taxes
Employment (UoP)	€3,600	~€2,000	Full ZUS, paid leave, benefits

Figures are estimates for IT professionals and may vary based on individual circumstances.

This table alone reveals why tech companies in Poland lean toward B2B for short-term, agile roles. But the decision is rarely that simple.

While B2B might look cheaper at first glance, misusing it, especially by treating a contractor like a full-time employee, can result in serious compliance issues and unexpected costs

Want a deeper look at how payroll, taxes, and social contributions work in Poland? Check out our guide to Poland’s Payroll and Social Security Regulations for IT Specialists.

What to choose in 2025: B2B vs. UoP

Employment contracts offer stability, legal protection, and predictable costs, which appeals to both employers and candidates who prioritize long-term security. 

B2B contracts, on the other hand, continue to gain popularity, especially in tech and IT. They offer more flexibility, lower upfront costs, and often higher take-home pay for contractors. 

Pros and Cons for Employers

B2B Contracts

Pros:

• Cost-effective due to lower employer obligations.
• Greater flexibility in scaling the workforce.
• Simplified administrative processes.

Cons:

• High risk of misclassification leading to legal and financial penalties.
• Less control over contractors’ work schedules and methods.
• Potential challenges in enforcing company policies.

Employment Contracts

Pros:

• Lower legal risk with clear compliance with labor laws.
• Better integration of employees into company culture.
• Attractive to candidates seeking job security and benefits.

Cons:

• Higher costs due to mandatory benefits and contributions.
• Less flexibility in adjusting workforce size.
• More complex administrative requirements.

Pros and Cons for Candidates

B2B Contracts

Pros:

• Potential for higher net income due to tax deductions.
• Greater autonomy and flexibility in work arrangements.
• Opportunity to work with multiple clients.

Cons:

• Lack of traditional employment benefits.
• Responsibility for managing taxes and social security.
• Less job security and protection.

Employment Contracts

Pros:

• Access to benefits like paid leave, sick days, and health insurance.
• Employer-managed tax and social security contributions.
• Greater job security and legal protections.

Cons:

• Lower net income compared to B2B arrangements.
• Less flexibility in choosing projects and clients.
• Potentially more rigid work schedules.

Looking for tailored advice? Talk to our team about choosing the right contract model for your team.

2025 Legal Updates Impacting Polish Contracts

Increased Minimum Wage

As of January 1, 2025, the minimum gross monthly wage in Poland is PLN 4,666, with an hourly rate of PLN 30.50. This affects salary calculations and benefits tied to the minimum wage.

Enhanced Powers for Labor Inspectors

Labor inspectors now have the authority to reclassify B2B contracts as employment contracts without court proceedings, increasing the importance of correctly structuring B2B agreements.

To avoid the reclassification of B2B contracts as employment relationships:

• Ensure contractors have autonomy over their work schedules and methods.
• Avoid providing company equipment or integrating contractors into employee workflows.
• Clearly define the scope of work and deliverables in the contract.
• Allow contractors to work with multiple clients.

Failure to adhere to these practices can result in fines ranging from PLN 1,000 to PLN 30,000, along with obligations to pay back taxes and social security contributions.

Final Thoughts

Choosing between a B2B and an Employment Contract in Poland requires careful consideration of legal obligations, financial implications, and the nature of the work relationship. 

Employers must assess their capacity to manage compliance risks, while candidates should weigh the trade-offs between flexibility and security.

At All IT Club, we work with companies hiring for both models. Here’s what we recommend:

• Use UoP if you’re hiring for permanent roles, team leadership, or need long-term compliance stability.
• Use B2B if you need speed, flexibility, and are hiring for short- to mid-term projects where autonomy is key.

In our experience, startups prefer B2B for development sprints, while scale-ups often convert top contractors to UoP after trust is built.

For personalized advice or assistance in structuring compliant contracts, feel free to reach out to our team. We help tech companies and specialists navigate Polish regulations and make informed, practical decisions.

FAQs: 

Q1: Can I work only for one company on B2B?

Yes, but it increases misclassification risk for the employer.

Q2: Do B2B contractors pay ZUS?

Yes, but on a flat-rate basis. You handle it yourself.

Q3: Can B2B include paid leave?

Yes, if negotiated in the contract. It’s not automatic.

Q4: Can foreigners work in Poland on B2B?

Yes. Many do. But you still need a legal entity and a visa setup.

Q5: Is B2B cheaper for employers?

Short-term, yes. But long-term legal and retention costs may rise.

Q6: Can I switch from UoP to B2B later?

Yes, but you’ll need to register as a business (działalność gospodarcza).