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It's just labor law, these are countries where job security is considered very important. As a result, a lot hinges on having an indefinite duration contract.

The same rule exists in France and you'll have a hard time getting a loan or even a rental if you don't have the sacrosanct CDI (Indefinite Duration Contract), or legal guarantors with one.

It may seem absurd in these edge cases, but it's a way of putting pressure on employers to either hire people for the long term, or let them go.

In this case, it's not necessarily a bad thing in 90% of cases either (because those that don't get permanent employment despite scoring ERCs are certainly very rare), it prevents people from being stringed along in a lab where they're not really building up a career, but rather setting themselves up to be 40 and unemployable, when they're eventually not given the job security the lab would have given 5+ years earlier if they ever intended to/could do so.

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