An Employment Agreement is a legal document that outlines the terms of employment between an employer and an employee. Moreover, it is mandatory to execute employment agreement with an employee. It serves as a model document containing terms and conditions of the employment. It is always recommended to execute a written agreement so as to clearly define and lay down the terms of employment. An Employment Agreement specifies broad terms like appointment, scope of work of employee, compensation, other perks, duties, hours of work, notice period etc. among other details. This is executed once an employee joins the organization.