Arizona law provides that an employer may terminate an employee at any time. The term is called "at-will employment."In Arizona, termination laws govern the conditions under which an employee can be terminated, ensuring that dismissals are conducted fairly and legally. The Arizona Employment Protection Act is an exception to "employment-at-will. " This law prevents an employer from firing an employee for certain reason. While a termination letter is considered good practice, there are no federal or Arizona state laws that require an employer to give you one. To file a complaint, you may complete one of the following two options: File a complaint online. Pay the employee at the time of discharge. As long as the employer doesn't violate any applicable civil rights or employment laws, the company is free to terminate employees without reason or cause. Compensatory hours shall be paid out at the employee's average base salary during the last three years, or current hourly rate, whichever is higher.