What Is an Employment Contract?

An employment contract is an agreement between an employer and an employee that sets out the terms and conditions of the job. It may be a formal document or a combination of an offer letter, policies and other written terms. It records what each side expects and provides a reference if there is a disagreement.

What it usually includes

• Parties and job title, with the main duties.
• Start date and, for fixed-term jobs, the end date.
• Place of work and any remote or travel requirements.
• Pay: rate, payment dates and any bonuses or commission.
• Hours: normal working time, overtime and shift patterns.
• Leave: vacation, sick pay and holidays.
• Benefits: health, retirement and other perks.
• Probation period: length and conditions.
• Notice periods for ending the job.
• Confidentiality, intellectual property and conduct terms.
• Restrictive covenants, such as non-compete or non-solicitation clauses.
• Dispute resolution and governing law.

Types

• Permanent or open-ended.
• Fixed-term, for a set period or project.
• Part-time and zero-hours, with different guarantees.
• Internship or training agreements.
• Casual or on-call contracts.
• Independent contractor agreements, which are not employment contracts but may look similar.

What to check before signing

1. Read everything, including attached policies.
2. Compare it with the offer you received, and ask about differences.
3. Check pay and deductions, hours and overtime.
4. Understand notice and termination.
5. Look at restrictive clauses, especially non-competes and ownership of your work.
6. Check for probation conditions.
7. Ask questions in writing.
8. Keep a signed copy.

For student workers and graduates

Part-time and graduate jobs often use standard contracts. Check whether they allow flexibility for exams, how hours are scheduled and, for international students, whether the job complies with visa rules. University careers offices often review offers for students.

Legal protections

Employment law gives workers rights that cannot be removed by a contract, such as minimum wage, safety rules and protection from discrimination. The details depend on location.

Related terms

See job offer letter, probation period at work, non-compete clause, benefits package and gross vs net pay.