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Whereas an offer letter is unofficial (avoiding statements that promise future wages or employment), an employment contract is exactly the opposite, setting wages and length of employment in legally binding stone.
The employment agreement spells out the rules, rights and responsibilities for both the employer and the employee, and includes any special obligations undertaken that are unique in a specific hiring situation. Additionally, an employment agreement is active throughout the entire tenure of the signing employee.
A contract is defined as an enforceable agreement between two parties. An employment contract is an enforceable agreement between two parties that contains whatever terms and conditions of employment the parties agree upon and, when accepted, becomes controlling upon the employment relationship.
An employment contract which details the employers expectations ensures that an employee is fully aware of his or her obligations and has agreed to the terms set forth. It also provides an employer with grounds for disciplining or terminating an employee who does not meet those expectations.