What is the primary function of an employee contract?

The primary function of an employee contract is to outline employer-employee responsibilities. This legal document serves to clearly define the terms and conditions of employment, ensuring both parties understand their rights and obligations. It typically includes important information such as job duties, compensation, work hours, and any other specific agreements. By setting these parameters, the contract helps create a structured working relationship, minimizing misunderstandings and providing a framework for accountability.

While personal goals can be a component of performance discussions, they are not the main purpose of an employee contract. Increasing productivity and managing workplace conflicts are also significant factors in the overall employee experience, but they are often addressed through management practices, team dynamics, and other organizational strategies rather than through the contract itself. The contract’s main role is to establish clear expectations and responsibilities from the outset of the employment relationship.