What characterizes an 'At-Will' employment agreement?

An 'At-Will' employment agreement is characterized by the provision that either party, which includes both the employer and the employee, can terminate the employment relationship at any time and for any reason, as long as the reason is not illegal. This flexibility allows employers to release employees without needing to provide justification, and similarly, employees have the freedom to resign without a formal reason.

This type of employment agreement reflects the principle of freedom to contract and is common in many employment situations, allowing for a dynamic workforce. It contrasts significantly with agreements that contain specific terms regarding duration, job security, or termination procedures, where job stability and procedural fairness are prioritized. In such cases, termination generally requires specific justification or notice, which is not a requirement in at-will contexts.