An employment agreement lays out the terms of the relationship between employer and employee. It covers relevant aspect of the terms of the employment such as general employee responsibilities, the date of hire, and the commitments of the employer. Not all agreements are the same, but they do have those basic terms.http://www.reuters.com/article/idUSTRE53569C20090406

Some key areas discussed in employment agreements (which are in the form of contracts) are the employee's duties, terms of employment, and compensation. Often, these issues are discussed within the job interview, but are then written into a contract to make a formal agreement. This action is done after an offer of employment is given to the future-employee.http://www.reuters.com/article/idUSTRE53569C20090406 The employment agreement is a result of negotiation between the employer and employee. Together, the employee and employer form the basis of what is expected of the employee, the salary, wages, or commission, and also starting and ending dates of the employment. The employment agreement is also used to state the circumstances in which employment termination could occur. Many companies have specific terms about termination circumstances such as an inability to work due to a terminal illness.http://www.reuters.com/article/idUSTRE53569C20090406

An employment agreement can also protect the employer from proprietary information being used by a former employee that could have detrimental effects to the employer by adding a non-compete clause.http://www.reuters.com/article/idUSTRE53569C20090406