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kaustubh chandratre 2kaustubh chandratre 2 

(Here you have to write trigger) as soon as new contract is created under an employee, employee record should get updated ( Start date, end date, Status) If that employee already have another active contract then based on primary contract, data should get

PriyaPriya (Salesforce Developers) 
Hey Kaustubh,

Have you already created the objects in your org ?

There is already a standard object 'Contract'. Instead of creating a new you can use that. 

As your requirement is to update the parent record whenever any child is created or updated, then refer this link where similar scenario has been explained using trigger :-

https://developer.salesforce.com/forums/?id=906F0000000kIzEIAU
 
Kindly mark it as the best answer if it works for you.
 
Thanks & Regards,
Priya Ranjan