generally, this will only be a contract of employment, which is a written contract that clearly sets out the conditions and terms of employment between the employee and the employer. the three major differences between the two are: employment contracts should also not be confused with employment agreements. employment agreements can commonly be described as any agreement between an employer and an employee, including those made verbally without paperwork or signatures. employment contracts, on the other hand, usually involve a written document and signatures from both parties.