When is job (sub) contracting permissible?
Job contracting is permissible only under the following circumstances : • The contractor or subcontractor carries on a distinct and independent business and undertakes to perform the work contracted on its own account, under its own responsibility, according to its own manner and method, free from the control and direction of the principal in all matters connected with such performance except only as to the results thereof; • The contractor or subcontractor has substantial capital, i.e. the adequacy of resources actually or directly used by the contractor or subcontractor to perform its work and may refer to capital stocks and subscribed capitalization, tools, equipment; implements, machinery, uniforms, protective gear, safety devices actually used; and, • The agreements between the contractor or subcontractor and the principal assures the contractual employees to all labor and occupational health and safety standards, free exercise of the right to organize, security of tenure, social
