The employment contract establishes the employment relationship between employee and employer. An employer is a physical or legal person who employs a worker and for whom the worker performs certain tasks during employment relationship. An employee is a physical person who performs certain tasks for the employer in an employment relationship. In an employment relationship, the employer is obliged to give the worker a job and to pay him a salary for the work performed, and the worker is obliged to personally perform the assigned work according to the instructions given by the employer in accordance with the nature and type of work. An employment contract, with regard to time, divides into fixed-term and permanent contracts. A fixed-term employment contract is written as exception in employment contracts, in order to facilitate the regulation of employment relationships which start with contract’s end date in sight. Contracts are limited by a deadline, a performance of a certain job, or an occurrence of an event. Employees benefit from indefinite duration contracts, while fixed term contracts serve employers better, allowing them to stay flexible and adaptable to modern labor market.