This type of employment agreement allows either the employer or the employee to terminate the relationship at any time, for any legal reason, or for no reason at all, with or without notice. A typical example might be found within an employee handbook or during onboarding. This does not, however, permit termination for illegal reasons such as discrimination based on race, religion, or gender.
Such agreements provide flexibility for both parties. Employers can adapt their workforce to changing business needs, while employees gain the freedom to pursue other opportunities without penalty. Historically, this concept evolved as the dominant form of employment relationship in the United States, contrasting with contractual employment with fixed terms. Its development reflects changing economic conditions and labor market dynamics.