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An employment contract is an agreement entered into between an employer and an employee at the commencement of the period of employment and stating the exact nature of their business relationship, specifically what compensation the employee will receive in exchange for specific work performed.

The central focus of most employment contracts is money. The employee may be compensated through wages, a salary, or by commission.

In addition to monitary compensation, the employment contract often specifies a fringe benefit package, including a retirement plan, employee stock options, the termination or resignation notice period, holiday entitlement, required hours of work, and health insurance benefits.

Topics: Employment Contract Employee Compensation Period Package Labor...

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