An employment contract is a formal contract between the worker and the hiring party. The contract governs the wages, benefits, working conditions and other necessary negotiations between the worker and the tenant.
Employee vs. Independent Contractor

An employee and an independent contractor differ only it requires a contract. An employee works under the control and supervision of the company, who is responsible for paying taxes on the wages of the employee and must comply with the labor laws of the applicable jurisdiction. An independent contractor is self-employed, responsible for taxes and works within the agreement contract.

Specification

An employment contract is used to specify the terms of the agreement negotiated between the tenant and the worker. Apart from wages, these terms include project responsibilities of each party, the term effective dates and contingencies, such as "follow the party x project given the appropriate resources" and "the party hiring an entire pay completion of the project.

Agreement

The employment contract is used to document the agreement between the two parties. Once the contract is signed by both parties, this is proof that the negotiation process has been finalized and both parties must now comply with the terms of the contract.

Legal protection

The employment contract is legal protection for tenants and workers. If a party does not comply with obligations, the contract will determine the responsibility of the party negligent and result in a Court of Justice.

Tax records

Describing the wages, benefits and job duties, the employment contract is tax receipts for both parties, should either be verified by the Internal Revenue Service.

Unions

Unions are exclusive agents that represent specific groups of workers, such as teachers or actors negotiation. Workers who belong to a union work under contract (also called a collective agreement) which was negotiated by the union now hiring. For these reasons, many workers prefer to work in the context of the protection agreement negotiated by a union.

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