It is common for employers to ask employees to sign a release as
a condition of receiving an enhanced severance package in a without
cause termination. If the employee accepts the package and signs
the release, the release will usually bar legal claims by the
employee arising from their employment.
It has not always been clear that a release prevents an employee
from bringing an unjust dismissal complaint under the Canada
Labour Code (Code). The Code gives certain
non-unionized employees, who have completed twelve consecutive
months of continuous employment, the right to file a complaint if
they consider their dismissals to be unjust. The Code says
that right applies "notwithstanding any other law or any
custom, contract or arrangement." In an earlier
case, the Federal Court said employees can file an
unjust dismissal complaint even after signing a release. That
decision was upheld by the Federal Court of Appeal. Despite
that ruling some unjust dismissal
