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Employment Termination in United States

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Termination process

All states (except Montana) fall under "employment at-will" which means employees or employers can terminate their relationship at any time.

Employers can generally fire employees without any reason, explanation, or warning. Several states recognise exceptions to the at-will employment doctrine in cases such as:

  • Employment contracts — employees who’re covered by collective bargaining agreements or contracts may have protections against summary dismissal that at-will employees lack
  • Implied contracts — employers cannot fire employees arbitrarily if an implied contract has been agreed upon in principle, whether or not it’s documented
  • Good faith and fair dealing — employers cannot terminate employees to avoid paying for agreed benefits like healthcare, pensions, or commission-based work like sales
  • Public policy — state laws can prohibit employers from letting employees go without just cause

Remote’s legal experts can help you navigate terminations to ensure employees are only let go fairly without leading to legal complications

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Notice period

Notice periods can be included in the employment contract with agreement between both parties.

Employers typically provide at least two weeks advance notice although it’s not generally required if employees are hired on an at-will basis.

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Severance pay

Severance pay in the United States is generally one or two month’s pay for every year worked, although there’s no requirement for it under the Fair Labour Standards Act.

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Probation periods

Probation periods are not required under Federal Law in the United States. In all states (except Montana) "employment at-will" legislation applies which means the addition of a probation period is not necessary for employers.