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An employment agreement is an arrangement or understanding between an employer and employee. In fact, some people sign noncompete agreements as terms of their employment without even realizing it.An employment contract is an agreement between an employer and employee regarding the employee's term of employment. The contract that embodies the results of the negotiations between the employer and the union, and sets forth their agreements. An employment contract is between an employer that hires an employee to perform a service in exchange for payment. A "non-compete agreement" is any restrictive covenant entered into between employer and employee that restricts post-employment activities of the employee. Contracts between employers and employees are standard procedure for most businesses. Their contract will automatically conclude on the end date set forth in the terms and conditions of their employment. What Provisions Determine How I Exit an Employment Contract?