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To create a contract for an employee in the HRMS, log in and navigate to the admin section, then click on 'employees' and select 'active employees.' Choose the employee's profile and click 'add' in the contract and resignation section. Select the contract type, and a contract letter template will appear. Enter the contract salary, performance allowance, and expiration date. If needed, you can add additional conditions apart from the template. Click 'save and close' to finalize the contract, which will now be visible in the contract and resignation section. You can view and print the PDF of the contract. In the employee's profile, the remaining days until the contract expires will also be displayed.