What is meant by “at-will employment”?

The concept of “at-will employment” refers to a type of employment relationship where either the employer or the employee can terminate the employment at any time, with or without cause, and without prior notice. This arrangement provides flexibility for both parties, allowing them to end the employment relationship as they see fit.

The essence of at-will employment is that it does not require a specific reason for termination – an employer can let an employee go for no reason at all, as long as it does not violate any federal or state laws, such as anti-discrimination laws. Similarly, employees are also free to leave their job without providing justification, allowing for greater autonomy in career decisions.

In contrast, the other options describe different types of employment relationships or policies. A contract with a definite end date indicates a fixed-term employment relationship, which does not fall under at-will criteria. A requirement for performance reviews pertains to evaluation practices but does not influence the at-will nature of employment. A policy for mandatory overtime is related to work hours and scheduling but does not establish the terms of employment termination. Thus, the clarity of at-will employment is captured accurately in the statement about termination without cause by either party.