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an employment contract is an agreement made between an employer and the employee with the purpose of creating a new employment relationship type of employment an employee could be an at-will employee or an independent contractor an at-will employee does not have a fixed period of time stipulated in the contract and could be terminated by either party at any time an independent contractor is usually hired for a determined purpose and for a determined time the employment contract agreement outlines the basics of the newly created employment relationship such as the employment duties whether the employee is an at-will employee or an independent contractor the employment termination the type and manner of compensation the employment benefits and the liability of the parties