An employment contract usually defined to mean just like a “contract of service”. An employment agreement or employment contract is a type of contract used with labor law for attribute rights in addition to responsibilities between parties to bargain. The agreement is between a “employee” and a “employer. ” It has arisen out from the old master-servant legislation, used before the particular 20th century. However generally, the agreement of employment symbolizes a relationship of economic dependence in addition to social subordination.