An employment contract is an agreement between the employee and employer specifying the terms of employment.http://labor-employment-law.lawyers.com/employment-contracts/Employment-Contracts.html

Generally, an employment contract is a formal agreement between employer and employee about the terms of the employment.http://labor-employment-law.lawyers.com/employment-contracts/Employment-Contracts.html Some employment contracts are explicit (where one reads and signs an agreement) while others are implied. An implied employment contract means that the contract is from verbal statements and/or actions taken by the employer or employee. This is determined by employee handbooks or through policies adopted during the employee’s employment.http://employment.findlaw.com/employment/employment-employee-hiring/employment-employee-hiring-contract.html

Eligibility terms for benefits may also be included in an employment contracts.. For instance, depending on the company, employees may receive health benefits, vacation, sick leave, and/or employee grievance procedures. An employment contract may also lay these terms out. http://employment.findlaw.com/employment/employment-employee-hiring/employment-employee-hiring-contract.html

There are several different purposes for an employment contract, one being to show the employer’s right to fire an employee is limited. In most states within the United States, employers can terminate employment “at will,” meaning at any time. However, if there is an explicit contract that states the employee must stay with the business or company for a certain amount of time, then the employer cannot terminate the employee’s employment. Most states recognize verbal statements declared by an employer to be a binding contract. For example, an employer can say to an employee, “You’ll be here as long as you make at least a 10% profit for the company,” or something similar to that. That statement could create a binding contract of employment. However, this statement needs to be specific enough to be enforceable.http://employment.findlaw.com/employment/employment-employee-hiring/employment-employee-hiring-contract.html