In most cases, employment contracts are permanent and rarely renegotiated. However, sometimes a company may run into financial difficulties or an employee may prove to be more valuable to the company than initially anticipated. In either case, an employer may contact an employee to renegotiate and create a new employment contract. With the current economy, it is more common of employers to contact employees to renegotiate a less expensive contract for the company rather than increase the contract to reward performance. Because a contract is legally binding, an employee does not have to submit to a less valuable contract, but the company will often offer incentives for the future.