[jagtesh]

One big reason for this is the tax law in US and Canada. Legally, contractors (esp. when incorporated) are considered employees if they work exclusively for one client over an extended period of time without interruption. Occasionally, I have seen such contractors take a few month sabbatical and return to work after that (still contracting).

Note: There are other criteria that have to be met as well for the govt to consider someone an employee: - if work happens a the employer’s premises - if the employer owns all equipment needed for work - how is the work instructed - can denote a manager/employee dynamic)