An employee contract is a legal agreement between the employer and newly hired employee that contains the rights and responsibilities of the employee at a certain job position. It is a legally bonded document that sets the right expectations in front of the company. The document typically contains information about wages, benefits, hours, and job responsibilities. It also contains provisions to keep company information and data confidential in certain cases. Both the parties, employer and employee include their name, address, details, and signature to authorize the contract. The terms mentioned in the employee contract help the employer to avoid risks while hiring a new employee.