An employment contract is the agreement between an employer and an employee that sets out the job, pay, hours, benefits and the rules both sides agree to follow.

An employment contract is the agreement that sets the terms of a job. It covers who the employer is, what the role is, how much the person is paid, the working hours, where the work happens and how either side can end the relationship. It can be a formal signed document, but in many countries a contract also exists through an offer letter, an email or even a verbal agreement once someone starts work.
What a contract must contain depends on where the employee works. Some countries require certain details in writing by the first day of work. Others allow a short offer letter plus a company handbook. This page is general information, not legal advice. Rules vary by country and region, so check local law or talk to an employment lawyer.
A clear contract prevents arguments later. When pay, hours, holiday and notice are written down, there is less room for different memories of what was promised. It also protects the company, for example with clauses about confidentiality or who owns work created on the job.
For the new hire, the contract is often the first real document they get from you. A contract that arrives late or is full of errors sends the wrong message before day one, and it can slow down payroll and system access.
Most companies follow the same basic steps once a candidate accepts an offer:
Example: A 60 person software company hires a support specialist. The offer is accepted on Monday. By Tuesday, HR sends the contract through its preboarding software, the new hire signs it on their phone that evening, and payroll gets the start date and salary the next morning without anyone retyping it.
An offer letter is usually a short summary of the job and pay that invites the candidate to accept. An employment contract is the fuller document with all the terms. In some places the offer letter is the contract, so it is worth writing it carefully.
Not always. In many countries a contract exists as soon as someone agrees to work for pay. Some places do require certain terms to be given in writing within a set time, so check the rules where your employees work.
Ideally before their first day, during preboarding. That gives both sides time to ask questions and lets HR set up payroll and accounts on time.


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