Also your healthcare in most cases.
> Eligibility for COBRA. In general, employees who were previously actively enrolled in health insurance coverage for at least one day, but lost it due to a change from full-time to part-time employment or termination(both voluntary and involuntary), are eligible for COBRA
https://help.zenefits.com/COBRA/Understanding_COBRA/01_Emplo...
You can still be fired in an instant and be escorted out the door, especially if you have/had access to critical systems
Normally you'll have to be told that you're underperforming, be put on a "performance improvement plan", and have to be given time to improve yourself, or demonstrate that you are performing well.
You can be made redundant for no reason, but you have to be warned the moment management are considering redundancies that your job is at risk, and you are able to make a case for how redundancies could be avoided, or how your position could be changed to fit into the new structure. If you are made redundant, you have to be paid extra (although it's a tiny amount and only after 2 years)
This is de facto the case in the United States as well. Employers will put employees on a PIP before letting them go to prevent them from claiming that they were wrongfully terminated (due to discrimination, retaliation, etc.).
Word has it, this is the norm in video games as well.
It is not a perfect system in practice, but I don't think it is conceptually incorrect.