One of my relatives works for a large well known game developer; same employer for years. Because they decide to classify many of their devs as contract workers, they are denied rights afforded to 'full-time' employees - when she is laid off for months at a time (to prevent being called a full-time) she can't collect unemployment. No health care, no benefits whatsoever. And due to contracts, can't work for a rival ei…
I'm amazed that this is legal in a first world country- it would be illegal to do this in a couple of third-world countries I'm personally familiar with: the laws state that if you're a on contract for more than a certain number of months, you automatically become a permanent employee. Firing and rehiring for the same position as a contractor is straight-up illegal.
I believe its the use of layoff and such terminology, that gets them around laws