A typical working scenario includes working for one company and having some type of working agreement, set pay and/or benefits, a stable location, regular hours and some type of payroll taxes and Social Security contribution.
Many contracts are verbal and open-ended, meaning the employee receives the same annual compensation, hours and workload without having to sign a new contract each year.
The employee can negotiate for a raise or change in work circumstance, or the employer might offer a raise, bonus or promotion, but the parties don’t sign a new contract. In the case of union employees, work situations are even more formal, with written contracts being the norm.