Labor-only
Contractor lacks substantial capital and the workers perform activities directly related to the principal's business under the principal's control — workers may be deemed employees of the principal.
Legitimate contracting
Contractor carries on an independent business, has substantial capital/tools, and controls the means/methods.
Trilateral relations
Principal, contractor, and workers — liabilities depend on classification under Art. 106 and DO regulations.
Sources
Last reviewed November 9, 2026. Laws, rules and Bar Bulletins change; if a source above has been amended or superseded, the official text controls.