The state of performing incomplete or poor quality work for pay. For example, suppose a video editor is hired to produce five 10-minute videos. If the client receives four two-minute videos, the video editor may be non-compliant with regard to the contract. Non-compliance may be actionable.
Definition. An employee who works under contract for an employer. A contract employee is hired for a specific job at a specific rate of pay. A contract employee does not become a regular addition to the staff and is not considered a permanent employee.
To sum it up, an employment contract is a document that both you and your employee sign that dictates the terms of your professional relationship. There is no requirement that you have to enter into a written employee contract with every employee that you have.