The Supreme Court of Canada ruled today in Wilson v. Atomic Energy of Canada Ltd. that federally regulated employers must provide justification for dismissing a non-unionized employee, confirming that that federally regulated, non-unionized employees cannot be dismissed without cause or reasons. This means that a federal sector employer cannot simply terminate the employment of an employee by providing reasonable notice, whether measured by the statutory minimums provided under the Canada Labour Code (the "Code") or the common law. Without proper justification, an employee may be entitled to a host of remedies under the Code including, but not limited to, reinstatement of employment with back pay, which can be much costlier and more problematic than pay in lieu of reasonable notice. Unfortunately, this ruling sets the federal sector apart from most Canadian provinces, including British Columbia. Our colleagues in Ontario have posted their thoughts on the matter, including the background facts to the decision and implications for federally regulated employers.
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