Employment contract vs B2B — a cost comparison
An employment contract gives protection and full contributions, B2B lowers the client's cost. When is each model worthwhile and safe.
Choosing between an employment contract (umowa o pracę) and a B2B arrangement is one of the most common decisions when shaping a team. The difference goes beyond employer cost and covers the scope of rights and risks on both sides.
Cost to the engaging party
Under umowa o pracę, the employer pays ZUS contributions from its own funds (pension, disability, accident, FP, FGŚP) — together over ten per cent on top of the gross salary. Add to that the cost of paid leave, sick pay for the first 33 days and mandatory OHS training.
Under B2B, the client pays only the invoice — the contractor personally pays contributions and tax. For the company this means a lower cost and more flexibility in settlements, but also no employee obligations toward the contractor.
Rights and protection of the contractor
- UoP: paid holiday, sick leave, protection against dismissal, notice period, severance pay.
- UoP: higher maternity and pension benefits thanks to the full contribution base.
- B2B: freedom over place and time of work, deductible costs, possible lump-sum or flat tax.
- B2B: no paid leave, no protection against termination, self-arranged health insurance.
Risk of sham B2B
Under Article 22 of the Labour Code, a relationship bearing the features of subordination — performing work at the time and place designated by the other party in exchange for remuneration — is an employment relationship regardless of the contract's name. A continuous B2B relationship with a single client, lacking genuine entrepreneurial features, can be challenged by the Labour Inspectorate or a labour court, and the employer may be ordered to pay back contributions.
Rates and thresholds in Poland are updated annually — consult an accountant before making any decisions.
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