If you are equating contract labor to cheap labor, sooner or later you will realize that it is not always the case. If there is an operational necessity, such as a sudden rush of orders or a breakdown issue, you can manage the situation by outsourcing the activity at a minimum cost. Otherwise, the liabilities will continue to increase over time, and the situation will become more difficult to handle as years pass by.
Increasing Liabilities with Contract Labor
So when you are engaging contract labor, the liabilities will keep on increasing. With the new labor codes on the anvil, the liabilities will increase further.