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An employment contract is an agreement between an employer and an employee that establishes a new employment relationship. Employees may be classified as at-will employees, who can be terminated by either party at any time without a fixed contract duration, or as independent contractors, who are hired for specific purposes and timeframes. The contract details the fundamentals of the relationship, including job duties, classification (at-will or contractor), termination terms, compensation type and method, benefits, and party liabilities.