A formal declaration within company documentation or an employment agreement typically specifies that the employment relationship is not bound by a fixed term or specific conditions and can be terminated by either the employer or employee at any time, for any legal reason, or for no reason at all, with some exceptions such as discrimination based on protected characteristics. A typical instance might be a clause in an employee handbook stipulating that employment is terminable at the discretion of either party.
This type of declaration provides clarity and predictability for both employers and employees, managing expectations about the duration of employment. Historically, this form of employment relationship has been the default in many jurisdictions, offering flexibility in workforce management for businesses while also allowing employees to pursue new opportunities readily. This established framework helps avoid misunderstandings about job security and reduces potential disputes regarding termination.