The employment agreement is an agreement established between an employer and an employee. The contents of employment agreements normally cover all relevant aspects of the terms of employment, including the date of employment, general responsibilities of the employee and the commitments of the employer towards the employee, tenure of employment, schemes for holidays and leaves, conditions of termination etc. Three essential aspects addressed in most employment agreements are the duties and liabilities of the employee, the terms of employment extended by the employer, and the compensation for services rendered by the employee. These areas make up the basis of an employment agreement in general.
Employment agreements also regulate the behaviour of the employee in the workplace as all company policies and procedures normally form a part of the employment agreement.