What's the difference? The intention of employing them is to offer them a permanent contract, but if things do not work out, firing people is hard. So, we almost always have three stages when we employ someone:

- one-month trial period - one-year contract - permanent contract

For senior people, the trial period is more of a formality as they are often quick to become productive in the organization. Of course, when after a couple of months it is discovered that the new senior and management do have a fundamental difference of opinion with regard to the future of the organization, professionally, or even personally, the end of the one-year contract is the moment to part ways. This can be initiated by employer, employee, or even both, but that depends on the situation.