[twawaaay]

I worked a lot for banks and aside from mandatory vacation there are other rules.

For example in one bank I worked for there is a 2 year limit on how long you can work there as a contractor. This is to make sure that all key personnel is actually employed by the bank and the assumption being that if somebody worked for 2 years they become key personnel by default and have to either be hired as an employee or fired as a contractor.

[jagtesh]

One big reason for this is the tax law in US and Canada. Legally, contractors (esp. when incorporated) are considered employees if they work exclusively for one client over an extended period of time without interruption. Occasionally, I have seen such contractors take a few month sabbatical and return to work after that (still contracting).

Note: There are other criteria that have to be met as well for the govt to consider someone an employee: - if work happens a the employer’s premises - if the employer owns all equipment needed for work - how is the work instructed - can denote a manager/employee dynamic)

[lazyasciiart]

Microsoft has approximately the same rule, and it’s entirely for the sake of employment law, not because they care about key personnel being contractors.