It is not difficult to create an employee contract. You just need to make a document that will set down the position that the person will hold, how much they will be paid, what they will be expected to do, and the like. This is a legal document that makes it so that the person has to fulfill the roll for which you have hired them. In some cases, the contract may also state when the job will end. College Football coaches, for example, will often sign contracts that allow them to work for the university for four or five years at a time. After that, a new contract will need to be created or someone else will be hired. One thing that you must put into an employee contract is a section that includes all of the reasons why you can fire the employee from the position. For instance, you may want to be able to let them go if they do not meet certain production numbers. You may want to be allowed to fire them if they skip a certain amount of days of work without informing anyone that they are going to be gone. You need to list all of the reasons that you can think of in the contract. The first reason that this is a good idea is just that it lets the person know what is expected of them. The employee will have a clear idea about what he or she is supposed to do each day. This will extend to an idea about what is supposed to be done over the course of the contract. You will find that your employees will do a much better job if they have a very clear idea regarding what it is that they are supposed to do in the first place. This limits confusion and mistakes. The main reason that you need to do this, however, is in case they sue you after you fire them. They may claim that they were fired without just cause, and they could take you to court over the lost wages. You need to be able to produce the contract that the employee signed. If it states that they will be fired if certain things happen and you can prove that those things happened, you will win the case. You will not have to pay the former employee.