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A strong employment agreement is crucial for small and medium-sized enterprises (SMEs) as it provides clarity on roles, responsibilities, compensation, and workplace expectations, helping to prevent misunderstandings and legal disputes. For resource-constrained SMEs, this clarity ensures smoother operations and more consistent management while projecting professionalism that attracts and retains talent. Beyond legal safeguards, such agreements also serve as tools to shape company culture by reinforcing values like accountability, collaboration, and ethical behavior. By including terms related to confidentiality, intellectual property, and performance standards, SMEs can maintain better control over their operations and assets, ultimately fostering a transparent, respectful, and high-performing work environment.