Why is contractual employment unethical?

what makes it unethical?

i have never heard that it is. if anything, it is the terms and conditions both parties agreed to so how is it unethical? breaching the contract is unethical...

it is neither unethical or illegal.
Most persons who are managers and above have written contracts with their employers (especially directors and VPs). the contracts outline every area of their employment, including stocks, bonuses, perks, vehicles, etc.

what is more prevalent now is the "At -Will Work environment"
this means that there is no contract and either party can terminate employment for essentially no reason, and no unemployment.

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