Laws governing the termination and discipline of employees

State procedures: Are there state-specific laws on the procedures employers must follow with regard to discipline and grievance procedures?

None for private employers. 

At-will or notice: At-will status and/or notice period?

Subject to many exceptions, Vermont is an employment-at-will state. 

What restrictions apply to the above?

Common exceptions to at-will employment include:

  • statutory protections;
  • contractual agreements;
  • torts; or
  • violation of public policy. 

Courts have held repeatedly that certain provisions in employee handbooks may establish an implied contract for employment, creating an exception to the at-will rule.

Final paychecks: Are there state-specific rules on when final paychecks are due after termination?

Employees who are terminated involuntarily must be paid within 72 hours of discharge. Voluntary termination requires payment “on the last regular pay day, or if there is no regular pay day, on the following Friday” (21 V.S.A. Section 342(b)).