An employment agreement defines the terms of a legal binding contract between an employee and employer such as compensation, duration, benefits etc. The purpose of an employment agreement is to ensure that both you and your employer have a clear understanding of what is expected during the term of employment. Why is this necessary? KMPs are key managerial personnel who are at senior level in the hierarchy and considered to be critical resources. The employment agreement of a KMP is different from other employment agreements and will likely address specific deliverables and obligations.