Companies are owned by people too. The idea that somehow the decision to engage in a consensual pooling of resources to organize an entity to conduct business somehow degrades a person is a wild take. In fact, the existence of companies as separate entities is in some way an insulation from the sort of state intervention upon the individual and their right to association that you describe. That's not a higher standard. That's higher barbarism, at best. Courts have the power to compel, coerce, and enforce through, however removed, the use of force upon the individual who may or may not have voluntarily assented to such power. Why would anyone hire anyone in the first place if you can't downsize when needed? You'd leave, if the state lets you, and in many places, it simply won't.

> I am happy I live and work somewhere where we hold companies to a higher standard.

I don't know where you live, but virtually every place I can think of with strong labor protection policies have them for the benefit of those with jobs at the expense of those without jobs who would like to get one. Harder to fire equals harder to hire with few exceptions.

Does the employee have an obligation to the company to work forever?

No.