Companies nowadays rarely offer long term contract to their employees. What are the advantages and disadvantages to this practice?

Currently, the job contracts are maiden in the short term
instead
long term between enterprises and employees. There are some positive and negative points in
this
practice, explained next. One of the advantages is more freedom for employees to change to another company after the end of the contract. Another beneficial thing is the possibility of dealing with better salaries when making a new contract.
On the other hand
, it can be a reason for instability and unpredictability in a long perspective. Workers can feel unsafe to make debts in long periods,
such
as buying a house, buying a new car, or pay education for kids.
For example
, it is very often to pay for a house in fifteen or twenty years. If the employee is not sure about the future of his wages, it can be a trouble to afford these goods. Some may argue that short-term work contracts are fairer for both sides, once the parties can adjust the terms from time to time.
However
, in areas where there are more workers than available jobs, it can be unfair and companies can dismiss an employee after the end of the contract and hire another person paying less. It is the law of supply and demand, that can be cruel sometimes.
Overall
, there are some benefits and some drawbacks to firms that do not offer long-term contracts to their employees. It depends on several factors
such
as the qualification of the staff, the situation of the economy, and the occupation field. Definitely,
this
subject is very complicated and must be analyzed case by case.
Submitted by fmulato on

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