Originally Posted by
CosmicKirby
It's a similar situation to getting fired IRL in some places. By law they can fire you 'for any reason' as per your contract, yet they still need a reason to fire you, and there's certain reasons that, even with a contract, they CANNOT fire you over, such as your race/religion/other protected status. So if one day you get up and fired without a word, and upon investigation it appears to be some minor infraction, the proof is on the fired to explain if they were fired for an illegal reason.
Fortunately and unfortunately this is near impossible to do. If there was wrong doing it's unfortunate, but if there was none on the employers part, then it protects them from the fired's attempts and legal response.
Unfortunately for all of us, this sort of situation just BREEDS fear mongering and paranoia. Any situation where the information is unknown is ripe for that sort of mentality and social grooming.