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An employment contract is an agreement between an employer and an employee that establishes a new employment relationship. An employee can either be an at-will employee, who has no fixed contract period and can be terminated by either party at any time, or an independent contractor, who is hired for a specific purpose and time frame. The contract outlines essential aspects of the employment relationship, including the employee's duties, classification (at-will or independent contractor), termination terms, compensation, benefits, and the liability of both parties.
