Unjust Dismissal
Canada Labour Code: Eligibility, Procedure, Just Cause, Remedies & Judicial Review
This chapter examines the unjust dismissal remedy under the Canada Labour Code,
including eligibility, jurisdiction, procedural fairness, just cause,
reinstatement, compensation and judicial review.
The Unjust Dismissal Remedy
The Canada Labour Code creates a distinct statutory dismissal remedy for eligible
federally regulated employees, with powers extending well beyond ordinary
common-law notice damages.
Eligibility & Jurisdiction
The statutory remedy is limited by employment status, length of service,
managerial status and other jurisdictional requirements.
What Constitutes a Termination?
The Code remedy requires a dismissal. Particular issues arise with fixed-term
agreements, resignation and disputes over whether the employment relationship
truly ended at the employer’s initiative.
Other Statutory Remedies
The availability of another statutory means of redress may prevent an unjust
dismissal complaint from proceeding where substantially the same dispute can be
addressed through another federal statutory process.
The Statutory Process
The Canada Industrial Relations Board process, procedural fairness and principles
governing interpretation of the unjust dismissal provisions.
Termination Without Cause
The unjust dismissal regime restricts the ability of an eligible federally
regulated employer to terminate employment simply by providing notice or pay in lieu.
Settlement Agreements & Continuing Jurisdiction
The effect of a settlement or release upon the continuing availability of the
statutory unjust dismissal remedy.
Defence: Just Cause
Where the employee falls within the Code remedy, the employer may defend the
dismissal by establishing just cause.
Remedies for Unjust Dismissal
The Board possesses broad remedial powers designed to place the employee, so far
as possible, in the position that would have existed but for the unjust dismissal.
Judicial Review
Judicial review of unjust dismissal decisions focuses on the applicable standard
of review, deference to the administrative decision maker and the circumstances
in which a finding may be set aside.
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