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An employment contract is an agreement between an employer and employee that establishes the terms of their 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, whereas independent contractors are typically hired for a specific purpose and time frame. The contract details essential aspects of the employment relationship, including job duties, classification, termination procedures, compensation type and structure, employment benefits, and the liabilities of both parties.