A Vermont employment contract is a binding agreement that defines the terms of employment for a newly-hired employee. It relays essential details regarding the appointed position, including the job title, work responsibilities, contract length, probationary rules, payment, and termination procedures. Employers can also incorporate a “non-compete” clause that restricts the employee’s ability to work with competing businesses during their term of employment and for a limited period following termination.
Once signed, the employment contract will represent the entire agreement between the employer and employee. Any changes made thereafter, such as modifying the employee’s wage or commission rate, must be authorized by both parties in writing before going into effect officially.
Independent Contractor Agreement – Defines a contractor’s service obligations and governs the working relationship with their client.
Subcontractor Agreement – Used by a contractor to reassign, or “subcontract,” a portion of work obligations to a subcontractor.
- Labor Statutes: Title 21
- Definition of Employee: § 302(2)
- Minimum Wage: $12.55/hr (§ 384)
- Overtime: One and a half (1.5) times the regular wage (§ 384(b)).
- Record Keeping: Employers must keep records of employees’ hours and wages for two (2) years; however, unemployment law requires employers to keep records for three (3) years (§ 393, § 1314, A Summary of Vermont Wage and Hour Laws, p. 6).
Permitted? Yes, an at-will employment contract can be terminated at any time for almost any reason. However, at-will termination is unlawful if the employer fires the employee for any of the following reasons:
- Exercising a workers’ right
- Serving in the military
- Being summoned for jury duty