When dismissing an employee, Canada Labour Code (“Code”) governed employers face different legal considerations than provincially regulated employers. In particular, section 240 of the Code provides that any non-managerial employee who has been employed for at least 12 months and is dismissed may bring a CLC complaint to consider whether the dismissal was unjust.[1] Unlike civil courts, the Labour Board has the power to award any remedy that is equitable, including reinstatement and back pay.[2] These awards can often be much larger or more onerous for employers than in non-Code contexts.
This article provides a brief overview as to when a Labour Board Adjudicator may find a dismissal to be just or unjust, as well as practical tips for employers.
Without Cause Dismissals: Unjust
Code-governed, non-managerial employees who have been employed for at least 12 months cannot be lawfully dismissed on a without cause basis pursuant to the 2016 Supreme Court of Canada decision of Wilson v. Atomic Energy[3].
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