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An employment contract is an agreement between an employer and an employee that establishes an employment relationship. Employees can be classified as at-will employees or independent contractors. At-will employees do not have a set contract duration and can be terminated by either party at any time. In contrast, independent contractors are typically hired for a specific purpose and time frame. The contract outlines essential aspects of the employment relationship, including duties, classification (at-will or independent contractor), termination conditions, compensation, benefits, and the liabilities of both parties involved.