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An employment contract in Maine is a formal agreement detailing the terms of employment and compensation between an employer and employee. It includes employee duties, job title, work status (full-time or part-time), pay, benefits, vacation time, leave, and confidentiality. Most contracts are "at-will," allowing either party to terminate the relationship at any time, though there are exceptions preventing termination based on discrimination. The video also discusses employment taxes and minimum wage laws relevant to Maine’s employment contracts.