An employment contract is a formal agreement between an employer and an employee that outlines the terms of employment. This document typically includes details such as job responsibilities, salary, benefits, work hours, and duration of employment. It serves to protect the rights of both parties and ensures clarity regarding expectations. Employment contracts can be either written or verbal, but written contracts are preferred for legal protection. They may also include clauses related to confidentiality, non-compete agreements, and termination conditions. Understanding the terms of an employment contract is essential for both employers and employees to avoid misunderstandings.