Federal Court Of Canada Finds "Without Cause" Dismissals Permitted Under The Canada Labour Code

In the recent case of Wilson v. Atomic Energy of Canada Ltd. ("AECL") 2013 FC 733, the Federal Court confirmed that companies subject to the Canada Labour Code (the "Code") are permitted to dismiss non-union employees without just cause. The Federal Court overturned a decision of a Code adjudicator appointed to hear the case allowed the complaint against the AECL on the basis that the AECL could not avoid an unjust dismissal complaint by providing a sizable severance package. In the Court's view, the decision was "unreasonable", as the adjudicator failed to consider the termination and severance requirements under the Code. The notice and severance pay provisions which require employers to provide notice and severance pay to employees who are dismissed without cause were found to be inconsistent with the premise that employers are not permitted to dismiss without cause. The Court further held that if Parliament had intended to preclude dismissals without cause, it would