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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, who lack a fixed contract duration and can be terminated by either party at any time, or independent contractors, hired for a specific purpose and duration. The employment contract details the key aspects of the relationship, including employment duties, classification (at-will or independent contractor), termination conditions, compensation type and manner, employment benefits, and the liabilities of both parties.