EFinance glossary

Employment Contract

Quick definition

A legal agreement defining the employer-employee relationship.

Overview

An employment contract is a legal document that sets out the terms and conditions of employment, including responsibilities, working hours, salary and benefits.

Common Use Cases

  • Formalising the employer-employee relationship.
  • Defining roles and responsibilities.
  • Protecting the rights of both parties.
  • Resolving workplace disputes.

Examples in Small Businesses

  • Drafting contracts for new employees.
  • Revising terms when employees are promoted.
  • Clarifying the conditions of temporary work.
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