1.Clarifies Rights and Responsibilities An employment contract defines the rights and obligations of both employer and employee, including job duties, salary, working hours, and benefits, preventing misunderstandings and disputes. 2.Legal Protection The contract serves as a legal document that protects both parties in case of disputes, ensuring their rights are upheld under the law. 3.Defines Working Conditions It specifies working hours, leave policies, termination conditions, and confidentiality obligations, helping both parties maintain clear expectations and avoid conflicts. 4.Ensures the employment relationship complies with local labor laws, reducing legal risks for both employers and employees. 5.Supports Visa Applications For employees requiring visa sponsorship, an employment contract is essential for work visa applications (e.g., Australia’s 482 and 186 visas), serving as proof of genuine employment.