24 V.S.A. § 1121: Authority to adopt

(a) A municipality may adopt rules relating to personnel administration, including the following: job classification, tenure, retirement, pensions, leaves of absence, vacations, holidays, hours of work, group insurance, salaries, layoff, reinstatement, promotion, demotion, dismissal, transfer, injury, settlement of disputes, and appeals.

(b) The personnel rules may apply to any or all employees of a municipality, including officers and employees of a fire department or police department maintained by the municipality. Rules adopted by the selectboard of a town under this subchapter shall not apply to employees of a town school district.