What is a formal agreement between an employee and employer called?

A formal agreement between an employee and employer is called an Employment Agreement. This document outlines the terms and conditions of employment, including aspects such as job responsibilities, compensation, benefits, working hours, and any other relevant policies or procedures. By establishing clear expectations for both parties, an Employment Agreement serves to protect the rights of the employee while also ensuring that the employer's needs are met.

Other options may refer to related concepts but do not serve the same formal legal purpose. For instance, a Job Contract typically might refer to a specific document outlining duties and salary, but it may not cover the comprehensive terms found within an Employment Agreement. A Work Agreement could be seen as a more casual arrangement without the regulatory details that an Employment Agreement includes, while an Employee Handbook is a guide that provides employees with information about company policies but does not function as a contract between the employer and employee. Thus, the Employment Agreement is the definitive term for the formal relationship established between an employee and employer.