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An employment contract is an agreement between an employer and an employee that establishes an employment relationship. There are two main types of employment: at-will employees, who lack a fixed contract duration and can be terminated by either party at any time, and independent contractors, hired for a specific purpose and period. The employment contract details the fundamental aspects of the relationship, including job duties, classification of the employee, terms of employment termination, compensation structure, benefits, and liability of both parties.