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An employment contract, often referred to as an executive agreement, is usually made with employees in leadership positions. However, it is not always necessarily an employment relationship, and for this reason, the executive contract should always be examined on a case-by-case basis. Merely the title of the contract does not define the employment relationship. Only the content of the contract determines what kind of agreement it actually is.

The assessment of the contractual relationship starts with whether the executive operates under the supervision and control of the employer. For example, a CEO is generally not in an employment relationship and therefore not subject to employment law, but it would still be advisable for them to have a written CEO contract.