A formal declaration within company documentation, often included in employee handbooks or offer letters, establishes a policy where either the employer or the employee can terminate the working relationship at any time, for any legal reason, or for no reason at all, without incurring liability. A typical example might assert that the relationship is not contractual and can be ended with or without cause or prior notice by either party.
This clarification provides transparency and manages expectations regarding the duration of employment. By clearly outlining the parameters of the working relationship, it helps mitigate potential misunderstandings and disputes. Historically, it reflects a shift from more traditional employment models based on fixed terms, providing flexibility for both employers and employees in the modern workforce. This flexibility can be advantageous in rapidly changing market conditions.