EMPLOYEE TERMINATION LETTER

State of Vermont

TABLE OF CONTENTS

1. Employer and Employee Information
2. Purpose and Effective Date of Termination
3. Reason for Termination
4. Final Wages and Compensation
5. Accrued Benefits and Paid Time Off
6. Health Insurance Continuation (COBRA / VT Continuation)
7. Unemployment Insurance Information
8. WARN Act / Vermont Plant Closing Notice
9. Return of Company Property
10. Post-Employment Obligations
11. Anti-Retaliation and Non-Discrimination Statement
12. References and Employment Verification
13. Severance (If Applicable)
14. General Provisions
15. Acknowledgment and Signatures
16. Enclosures and Attachments Checklist
17. Sources and References

1. EMPLOYER AND EMPLOYEE INFORMATION

Employer (Company):

Employee:

Prepared By:

Delivery Method:

☐ Hand delivery with signed acknowledgment
☐ Certified mail, return receipt requested
☐ Email with read receipt and follow-up hard copy
☐ Other: [________________________________]

2. PURPOSE AND EFFECTIVE DATE OF TERMINATION

This letter serves as formal notification that the employment of [Employee Full Legal Name] ("Employee") with [Company Legal Name] ("Company") is terminated effective [__/__/____] ("Termination Date").

Employee's last day physically in the workplace: [__/__/____]

3. REASON FOR TERMINATION

Vermont recognizes the at-will employment doctrine, subject to statutory and common-law exceptions, including the implied covenant of good faith and fair dealing recognized in certain circumstances by Vermont courts.

☐ Voluntary Resignation
☐ Involuntary Termination – Performance
☐ Involuntary Termination – Misconduct
☐ Position Elimination / Reduction in Force
☐ End of Contract / Temporary Assignment
☐ Mutual Agreement
☐ Other – [________________________________]

Explanation: [________________________________]

4. FINAL WAGES AND COMPENSATION

Vermont Final Paycheck Requirements (21 V.S.A. § 342)

Critical Distinction Based on Type of Separation:

Involuntary Termination (Discharge/Layoff): Under 21 V.S.A. § 342(c)(2), all earned and unpaid wages must be paid within 72 hours of the discharge.

Voluntary Resignation: Final wages must be paid on the next regular payday or, if there is no regular payday, on the Friday following resignation.

Failure to pay timely may result in penalties under 21 V.S.A. § 348, including double the unpaid amount plus costs and attorney fees.

Payment method: ☐ Direct deposit ☐ Paper check ☐ Other: [________________]

72-Hour Deadline (if involuntary): Final wages must be paid no later than [__/__/____] at [____] (time).

Expense Reimbursement

Outstanding business expenses must be submitted within [____] days. Approved amounts will be reimbursed within [____] business days.

5. ACCRUED BENEFITS AND PAID TIME OFF

Vacation Payout

Under Vermont law, accrued vacation is generally treated as wages when an employer's policy treats it as earned compensation. If the Company's policy provides for vacation payout at separation, it must be included in the final paycheck.

☐ Company policy provides for vacation/PTO payout upon separation.
☐ Company policy does not provide for payout.

Earned Sick Time

Under the Vermont Earned Sick Time Law (21 V.S.A. § 481 et seq.), employers are generally not required to pay out accrued, unused sick time upon separation.

6. HEALTH INSURANCE CONTINUATION (COBRA / VT CONTINUATION)

Federal COBRA (Employers with 20+ Employees)

Under 29 U.S.C. §§ 1161–1169, Employee may elect continuation coverage for up to 18 months.

Vermont Continuation Coverage (8 V.S.A. § 4090a)

Vermont requires insurers to offer continuation coverage to eligible employees and dependents, regardless of employer size, for a period determined by the plan. This applies to employers with fewer than 20 employees who are not subject to federal COBRA.

☐ Federal COBRA applies
☐ Vermont continuation coverage applies
☐ No group health coverage offered

7. UNEMPLOYMENT INSURANCE INFORMATION

Employee may be eligible for unemployment compensation administered by the Vermont Department of Labor ("VDOL").

How to File a Claim:
- Online: https://labor.vermont.gov
- Phone: (877) 214-3330

The Company will respond timely and accurately to VDOL inquiries.

☐ The Company will not contest Employee's unemployment claim.
☐ The Company reserves the right to provide accurate separation information to VDOL.

8. WARN ACT / VERMONT PLANT CLOSING NOTICE

Federal WARN Act (29 U.S.C. § 2101 et seq.)

Applies to employers with 100+ employees for plant closings or mass layoffs.

Vermont Notice of Potential Plant Closings (21 V.S.A. § 483)

Vermont requires employers with 50 or more employees to provide 45 days' written notice to the Secretary of Commerce and Community Development, affected employees, and local officials before a plant closing or mass layoff affecting 50+ workers.

☐ Not applicable to this termination.
☐ Federal WARN notice provided on [__/__/____].
☐ Vermont plant closing notice provided on [__/__/____].

9. RETURN OF COMPANY PROPERTY

Employee must return all Company property on or before the Termination Date.

Employee must delete Company data from personal devices and certify deletion upon request.

10. POST-EMPLOYMENT OBLIGATIONS

Employee remains bound by all survivable agreements:

☐ Confidentiality / Non-Disclosure Agreement dated [__/__/____]
☐ Non-Competition Agreement dated [__/__/____]
☐ Non-Solicitation Agreement dated [__/__/____]
☐ Intellectual Property Assignment dated [__/__/____]
☐ Other: [________________________________]

Note: Vermont courts scrutinize non-compete agreements and will enforce them only if they are supported by adequate consideration, are reasonable in scope and duration, and protect a legitimate business interest.

11. ANTI-RETALIATION AND NON-DISCRIMINATION STATEMENT

This termination was made without regard to any characteristic protected by the Vermont Fair Employment Practices Act (21 V.S.A. § 495) or federal law, including race, color, religion, ancestry, national origin, sex, sexual orientation, gender identity, age, disability, HIV status, or place of birth.

Nothing in this letter restricts Employee's right to:

• File a complaint with the Vermont Human Rights Commission or the EEOC;
• Participate in any governmental investigation;
• Engage in protected activity under the National Labor Relations Act;
• Report violations of law under the Vermont Whistleblower Protection Act (21 V.S.A. § 507).

12. REFERENCES AND EMPLOYMENT VERIFICATION

The Company will confirm only: dates of employment, last position held, and final salary (with written authorization).

Requests directed to: [________________________________]

13. SEVERANCE (IF APPLICABLE)

☐ No severance is being offered.
☐ Severance offered per separate agreement (enclosed).

14. GENERAL PROVISIONS

14.1 Governing Law. This letter is governed by the laws of the State of Vermont. Exclusive venue for disputes lies in the state courts of Vermont.

14.2 No Admission. This letter is not an admission of liability.

14.3 No Waiver. This letter does not release claims by either party.

14.4 Severability. Invalid provisions do not affect remaining provisions.

14.5 Entire Notice. This letter is the entire termination notice, except for surviving written agreements.

15. ACKNOWLEDGMENT AND SIGNATURES

Company Representative

Signature: ________________________________________

Printed Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]

Employee Acknowledgment

I acknowledge receipt of this letter and all enclosures. My signature confirms receipt only and does not waive any legal rights.

Signature: ________________________________________

Printed Name: [________________________________]

Date: [__/__/____]

☐ Employee declined to sign. Witnessed by:

Witness: [________________________________] Date: [__/__/____]

16. ENCLOSURES AND ATTACHMENTS CHECKLIST

☐ Final pay statement
☐ COBRA / Vermont continuation election notice
☐ Vermont DOL unemployment information
☐ Benefits and 401(k) rollover information
☐ Copies of surviving agreements
☐ Severance Agreement and Release (if applicable)
☐ Property return checklist
☐ Vermont plant closing notice (if applicable)
☐ Other: [________________________________]

17. SOURCES AND REFERENCES

• 21 V.S.A. § 342 – Payment of wages: https://legislature.vermont.gov/statutes/section/21/005/00342
• 21 V.S.A. § 348 – Penalties for wage violations
• 21 V.S.A. § 481 et seq. – Earned Sick Time
• 21 V.S.A. § 483 – Notification of potential plant closings
• 21 V.S.A. § 495 – Fair Employment Practices Act
• 21 V.S.A. § 507 – Whistleblower Protection
• 8 V.S.A. § 4090a – Vermont continuation coverage
• 29 U.S.C. §§ 1161–1169 – Federal COBRA
• Vermont Department of Labor: https://labor.vermont.gov

This template is provided by ezel.ai for informational purposes only. It does not constitute legal advice. Verify all citations before use. Have this document reviewed by a licensed Vermont attorney.