This is also true in the United States. In particular, there was a major class action suit brought against Microsoft in 1996 on behalf of thousands of workers who were classified as contractors for years at a time. [0] As a result, almost all companies now have strict limits on the max contract term, which is often one or two years.

0: https://en.wikipedia.org/wiki/Permatemp#Vizcaino_v._Microsof...