yup. i was hired on a 1y contract, and because i did a good job, got a permanent one after 9 months (which is quite common where i work).
also, you can't be just fired for performance reasons right away -- you need to first do a documented improvement plan and you need to at least try to move the employee to a different part of the company.
if she was in the netherlands, she could easily sue CF for wrongful dismissal.