The relationship between an employer and employee is governed by a contract of employment. Under the Terms of Employment (Information) Acts 1994 to 2014, an employer must provide all new employees with a written statement of terms and conditions governing his/her employment. For employees who have not previously received such a written statement, a contract clarifies the details of the employment relationship, the rights and duties of both parties, and may prove crucial in the event of disagreement between the parties.