An employment relationship is a voluntary legal relationship between an employee and an employer in which their mutual rights, obligations and responsibilities are regulated by heteronomous and autonomous sources of labor law i.e. laws, collective agreements, labor regulations and labor contracts. The individual working relationship of a specific employee and employers is based on an employment contract. Many employees in Croatia are employed precisely through employment contracts. The employment contract regulates the mutual relations between the employee and the employer and through it the employee enters into an employment relationship with the employer. An employment relationship is possible only if both contracting parties agree one with another. The employment contract has its content prescribed by the Labor Law, and it must contain any employment contract or certificate of employment, if the contract is not concluded in writing. When concluding an employment contract, the will of the employer and the employee must be harmonized. Conclusion is usually offered by the employer, and the contract is concluded for an indefinite or definite period of time. Through general rights, direct or indirect discrimination in the field of work and working conditions is prohibited, it is necessary to ensure conditions for working in a safe manner and the right to education and training in connection with the workplace. The employer is obliged to give the worker a job and pay him a salary for the work performed and the worker is obliged to carry out the work according to the instructions and at the place determined by the employer. From the basic rights and obligations, some others also arise, such as working hours, rest and leave, protection of workers unable to work, etc. In case of termination of the employment relationship, it is possible by the death of the employee or the employer, at the end of the period for which a fixed-term employment contract was concluded, when the worker reaches sixtyfive years of age, by agreement between the worker and the employer, by recognition of the right to a disability pension, if the worker was not satisfied at the workplace or violated the law. The very purpose of writing this paper was to show what the current legislative and legal regulation of labor relations is, i.e. what certain prescribed rules mean when concluding employment contracts and how they contribute to the relations between employees and employers.