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 issues arise, the contract can be referred to for clarification. Additionally, it may include clauses about confidentiality, termination, and dispute resolution, ensuring that both the employer and employee are on the same page throughout their working relationship.