An employment contract is a formal agreement between an employer and an employee that outlines the terms of their working relationship. This document typically includes details such as job responsibilities, salary, benefits, and working hours. It serves to protect both parties by clearly defining expectations and obligations. Having an employment contract is important because it helps prevent misunderstandings and disputes. If any issues arise, both the employer and employee can refer back to the contract for clarification. Overall, it provides a sense of security and professionalism in the workplace, ensuring that everyone is on the same page.