I've seen it both used as you describe (meeting expectations and doing nothing more) as well as to describe simply doing no work and waiting to be fired while collecting a paycheck for the time it takes for your employer to fire you.
This fracture has created a explosive discourse where each side calls the other side selfish idiots. If we can pivot this instead to "work-to-rule", which is less easy to fracture, then maybe we can get some actual productive discourse around unwritten and unpaid labor expectations that employers place on their employees.