In the Lone Star State, the standard employment relationship assumes that either the employer or the employee can terminate the relationship at any time, for any reason that is not legally prohibited. This means an employer can generally dismiss an employee without warning or providing a specific reason, as long as the termination doesn’t violate state or federal anti-discrimination laws. Similarly, an employee is free to resign whenever they choose, generally without needing to provide advance notice. For example, a company could decide to reduce its workforce due to economic downturn, impacting employees regardless of performance. Conversely, an individual could leave a position to pursue a better opportunity without fear of legal repercussions.
This system offers flexibility to both employers and employees in adapting to changing circumstances. Businesses can quickly adjust staffing levels to meet demand, while individuals have the freedom to pursue career advancement or personal priorities. Historically, this approach to employment has fostered a dynamic labor market in Texas. However, its important to understand that specific legal exceptions, such as contracts or collective bargaining agreements, can modify this default arrangement, and certain dismissals based on protected characteristics like race, religion, or gender are unlawful.