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An employment contract is an agreement between an employer and an employee that establishes a new employment relationship. Employees can be classified as at-will employees or independent contractors. At-will employees do not have a fixed contract duration and can be terminated by either party at any time. In contrast, independent contractors are hired for a specific purpose and time. The employment contract outlines essential elements of the relationship, including the employee's duties, classification, termination procedures, compensation type and manner, benefits, and the liability of both parties.