# What is an Employment Contract?

An employment contract is a legally binding agreement between employer and employee. It outlines role, pay, benefits, and obligations. SMEs must ensure contracts are clear, compliant, and securely stored. Digital contracts and eSignature reduce errors and delays.

Source: https://faqtic.co/glossary/employment-contract

## Why it Matters for SMEs

- Ensures compliance
- Clarifies terms
- Reduces disputes

## Example in Practice

Factorial generates and stores signed contracts for all employees.

## Frequently Asked Questions

### Are written contracts required?

Yes, in most jurisdictions.

### Can contracts be digital?

Yes, with legally valid eSignatures.

### How often should contracts be updated?

On role, pay, or legal changes.

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