In Wilson v. Atomic Energy Canada Ltd., the Supreme Court of Canada held that the Canada Labour Code precludes employers from dismissing employees subject to the Code without cause. The Court upheld a labour arbitrator's decision that Mr. Wilson – who was dismissed without cause but with a significant severance package in lieu of notice – was unjustly dismissed. The Court held that the statutory scheme introduced in 1978 displaced the common law, by which employers are allowed to dismiss without cause as long as they either give reasonable notice or pay in lieu of notice. The statutory scheme provides that employees are only allowed to be dismissed with cause, and if they are found to be unjustly dismissed, the employee could obtain remedies including significant damages or reinstatement.
This decision is significant for federally regulated organizations, including banks, as it significantly limits their options for terminating employees, and effectively gives non-unionized employees very similar rights to their unionized counterparts.
You can read BLG's more detailed analysis of the case here.
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