What are the advantages or issues with employing staff on a contract basis ?

[Tillyscoutsmum]

I am about to take over as Chairperson of a pre school and I have noticed that all the staff are employed on 12 month contracts. They have all been there for years (35 in one instance !) and just get issued with a new contract (on same terms) at the start of each school year.

Could anyone give me an idea as to why they may have chosen to do it this way ? Are there are advantages/disadvantages I need to be aware of ?

Thanks in advance

Advantages - once they've been there that long absolutely none; they are all permanent.
Disadvantages - but of a faff issuing a new one yearly for no reason.

Thanks flowery. I sort of assumed they'd have all the normal "protection" on the basis they have been there so long. It just seems a bit daft the continue the 12 month contract thing tbh. I'm going to suggest they scrap them but just wanted to make sure there weren't any reasons why it would be a problem.

It is cheaper.

How's it cheaper Putthatbookdown ?

Well, in the place I worked before those with "permanent"contracts got pension contributions, more holiday and sick pay.

Once they've been there 4 years they are permanent regardless of what their contract says, and anyway treating fixed term staff less favourably in terms of benefits/pay etc is illegal.