Labor-only contracting
As defined under Article 106 of the Labor Code, labor-only contracting, a prohibited act, is an arrangement where the contractor, who does not have substantial capital or investment in the form of tools, equipment, machineries, work premises, among others, supplies workers to an employer and the workers recruited are performing activities which are directly related to the principal business of such employer.
To determine whether a contractor is engaged in labor-only contracting, "the totality of the facts and the surrounding circumstances of the case are to be considered."(Polyfoam-RGC International Corporation v. Concepcion, G.R. No. 172349, June 13, 2012).
To determine whether a contractor is engaged in labor-only contracting, "the totality of the facts and the surrounding circumstances of the case are to be considered."(Polyfoam-RGC International Corporation v. Concepcion, G.R. No. 172349, June 13, 2012).
