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An employment contract is a formal agreement between an employer and an employee to establish an employment relationship. Employees may be classified as at-will or independent contractors. At-will employees do not have a specific contract duration and can be terminated by either party at any time. In contrast, independent contractors are hired for a specified purpose and time period. The employment contract details the fundamentals of the relationship, including the employee's duties, classification, termination conditions, compensation structure, benefits, and liabilities of both parties.