> But of course many companies have found a way around both problems.
> You see, rather than making permanent employment contracts, they make
> extremely short temporary contracts that they just renew over and over
> again for as long as the employee is hired. These temporary contracts
> are typically for periods of three to even just one month.

In the UK retail industry having contracts that are for a low or even 
zero number of hours are very common. The employer is then legally 
allowed to give you 40 hours of work every week for 6 months and then 
nothing (or only 4 hours or something).

> You see, you can't fire somebody without good reason.

The problem is (in the UK at least) that "they are not very good at 
their job and we want to replace them with someone better" is not a 
"good reason" in the eyes of the law.

> (At least these employees get all the same legal benefits as those who
> have a permanent contract, eg. in terms of holydays and legal protection.
> However, they have to live in constant fear that their employer one day
> decides not to renew.)

Typically here though for professional temporary workers they get paid 
significantly more (sometimes even double) than permanent staff. So if 
you can get yourself a "temporary" contract that an employer repeatedly 
renews you are on to a real winner. The fact that you might then be 
unemployed for 6 months after a few years work is more than offset by 
the increased salary you got during that time.

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