An employment contract agreement is the paperwork created by a company outlining an employee's work situation with the company. The agreement must be signed before employment begins. These contracts include details on the circumstances of employment, compensation processes and termination processes. Depending on the specific position, the contract may be more or less complicated. Large companies often create standard employment contracts for hourly workers, and unique contracts for higher positions. These can include clauses on not working for the employer's competitors or sharing company information after one leaves the company. Many states do not recognize such agreements because they break the individual's rights.