Definition: An agreement between an employee and employer that specifies the terms of employment. An employment contract may be explicit or implied. Most employees work under employment contracts, whether or not they realize it. For example, if on new-hire orientation day, an employee signs something as simple as a promise to abide by company policy, it likely constitutes an employment contract. It's not unusual for employers to dictate employment contracts, other than collective bargaining agreements. Typically, only upper-management employees might have the option of negotiating their employment contracts. A violation of one or more of the terms in an employment contract by either an employee or employer is typically called breach of contract.
Also Known As: Contract of Employment and Employment Agreement
