What does "at-will employment" refer to?

"At-will employment" refers to a type of employment arrangement where either the employer or the employee can terminate the employment relationship at any time, and for any lawful reason, without the need for prior notice. This concept provides flexibility for both parties, allowing employers to dismiss employees based on performance issues, changes in the business, or economic conditions, while also enabling employees to leave their jobs for any reason that suits their personal or career goals.

In the context of employment practices, at-will employment is a fundamental principle in many jurisdictions, underpinning the idea that employment is voluntary and that both parties retain the right to end the relationship without needing to provide justification, as long as the reasons are not discriminatory or otherwise unlawful. This characteristic of at-will employment makes it distinct from employment situations that are governed by contracts, guaranteed job security policies, or fixed-term agreements.