My guess: they keep you around on contract for 1-6 months because laying you off immediately would be very disruptive.
One company I worked for did this. It felt weird to everyone. But they did give a slightly better severance to those that stuck out their contracts so it worked out slightly better for them.
One company I worked for did this. It felt weird to everyone. But they did give a slightly better severance to those that stuck out their contracts so it worked out slightly better for them.