Employees on contractual employment status

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I wonder if it is common in all other countries as well, It makes me think or it actually bothers me a bit that there are well a lot of companies right now here in the Philippines that employs people on a contractual basis, this being said that people do not get benefits, they have to work for a 5 month terms and they had to renew contract and be re-assigned to another section of the company - this is common to employees with blue collar jobs. Much recently we are aware as well there have been a lot of companies who does follow the same with even office personnel and they are graduates of 4 year courses, but are not regular employees with no health benefits, nothing to enjoy years after their employment. You will be surprised as to how many are working as this status in their own companies. We know that companies do this for the sake of trying to save money for their own operations, etc. But i think it is already becoming a practice and somehow there is a law being broken if our government will look deeper into it. Is this kind of practice common to your country, as well? If so or if not, what prevails as employment status in your place?