This happens a lot in the US too; it's unfortunately a side effect of the hiring policies at most companies. Many companies would prefer to pay $150,000 per yea

This happens a lot in the US too; it's unfortunately a side effect of the hiring policies at most companies. Many companies would prefer to pay $150,000 per year to a contractor than pay $100,000 per year plus benefits. The contractor route gives you more cost certainty, plus when you lay off a contractor by canceling or refusing to renew the contract, it doesn't count as a layoff. Using contractors this way allows companies to respond more quickly to negative economic conditions, and at a lower cost (you often have to pay severance to employees).