Unjust Dismissal Under Canada Labour Code

Remedy – Lost Income


The principle of assessing such a loss is not based on wrongful dismissal concepts. This principle is firm. 1

The purpose of the monetary remedy is, as in the case of human rights jurisprudence, to make the victim whole. 2 The case law in human rights is similar. Cases in human rights jurisprudence may also be argued, as the same principle of make whole is also used.

The Board is allowed by the Code to order lost compensation to be paid  “not exceeding the amount of money that is equivalent to the remuneration that would, but for the dismissal, have been paid by the employer.” The principle underlying this remedy is that the complainant should be put in the position she would have been in but for the unjust dismissal.

One example is a case in which the adjudicator ordered lost compensation from the date of termination to the hearing date, this being from August 3, 2010 to March 3, 2012. 3

Duty to Mitigate

The common law on this issue has been used by adjudicators to establish the income loss. This includes the Supreme Court of Canada decision in Evans. 5