contract of employmentcontract of employment: a contract governing the relationshi...: a contract governing the relationship between an employer and an employee and typically setting out the duties to be undertaken by the employee in exchange for remuneration or a salary. A contract of employmentcontract of employment: a contract governing the relationshi... need not be in writing, although under the Employment Rights Act 1996 an employee must at least be provided with a written statement of terms of employment.