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An employment contract is an agreement between an employer and an employee that establishes a new employment relationship. The employee may be classified as an at-will employee or an independent contractor. At-will employees do not have a set duration in their contract and can be terminated by either party at any time, while independent contractors are hired for a specific purpose and timeframe. The employment contract details the fundamental aspects of the relationship, including the employee's duties, classification, termination conditions, compensation, benefits, and liabilities of both parties.