ARTICLE
19 July 2016

Supreme Court Rules Federally Regulated Companies Cannot Dismiss Non-Unionized Employees Without Cause

BL
Borden Ladner Gervais LLP

Contributor

BLG is a leading, national, full-service Canadian law firm focusing on business law, commercial litigation, and intellectual property solutions for our clients. BLG is one of the country’s largest law firms with more than 750 lawyers, intellectual property agents and other professionals in five cities across Canada.
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.
Canada Employment and HR

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.

About BLG

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More