Definition
A legally binding agreement specifying terms of employment including duties, compensation, and termination conditions. Rare in the U.S. where at-will employment reigns, but standard elsewhere in the civilized world.
Example Usage
My European employment contract guarantees 25 vacation days and requires six months notice for termination—concepts utterly foreign to my American colleagues.
Origin
Formalized employment relationships dating back to guilds and apprenticeships in medieval Europe
Fun Fact
Only about 10% of U.S. workers have formal employment contracts, compared to near-universal coverage in most European countries, which is why American employees can be fired while European ones require documentation and cause.
Related Terms
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See “employment contract” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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