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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 or independent contractors. At-will employees do not have a fixed contract duration and can be terminated by either party at any time. In contrast, independent contractors are hired for specific purposes and timeframes. The employment contract outlines fundamental aspects of the relationship, including job duties, classification (at-will or contractor), termination policies, compensation types, benefits, and the liabilities of both parties involved.