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an employment contract or contract of employment is a kind of contract used in labor law to attribute rights and responsibilities between parties to a bargain the contract is between an employee and an employer it has risen out of the old master servant law used before the 20th century employment contracts relies on the concept of authority in which the employee agrees to accept the authority of the employer and in exchange the employer agrees to pay the employee a stated wage self-employed people should be able to look after their own affairs and therefore work they do for others should not carry with it an obligation to look after the rights to a minimum wage holiday pay sick leave fair dismissal a written statement of the contract the right to organize in a union and so on an independent contractor is in business for him or herself providing services to other businesses and does not work for or under an outside authority an employee works for an organization and is covered by federa
