Human Resources Certification Institute (HRCI) Practice Exam 2025 - Free HRCI Practice Questions and Study Guide

Employment contracts are primarily used to outline the terms and conditions of employment between the employee and the employer. This foundational document establishes the expectations and responsibilities of both parties, including but not limited to job duties, compensation, benefits, work hours, and duration of employment. By clearly detailing these elements, the employment contract helps prevent misunderstandings and disputes that could arise later in the employment relationship.

While employment contracts may sometimes touch on specific aspects related to social media policies, workplace dress codes, or performance metrics, these elements are typically defined in separate policy documents or employee handbooks rather than being the primary focus of an employment contract. The primary purpose is to ensure that both the employer and employee have a clear understanding of their legal agreement, which is essential for a healthy and productive employment relationship.