Canada Labour Code Does Not Prohibit Without Cause Terminations

5.2.15

The Federal Court of Appeal in Wilson v. Atomic Energy of Canada Ltd., 2015 FCA 17 (“Atomic Energy”) confirmed that federally regulated employers can dismiss non-union employees without cause. 

The Canada Labour Code (the “Code”), which applies to federally regulated employers, provides that non-union employees with 12 months or more service can bring complaints alleging that the termination of their employment was “unjust.”  An adjudicator, appointed under the Code, can award a range of remedies, if they find the termination was unjust, including reinstatement of the employee.