Federally Regulated Employees Do Not Have Just Cause Protection

A recent decision of Canada's Federal Court of Appeal has provided clarity to a decades-long debate as to whether non-unionized, federally regulated employees can be terminated without cause. The genesis for the debate lies in the wording of the Canada Labour Code which allows an employee to make a complaint where the dismissal is "unjust". The case law has been divided on this issue, with some adjudicators interpreting this as providing just cause protection.

Most employment relationships in Canada are subject to provincial regulation.  Generally, speaking, provincially regulated employers may terminate a non-unionized employee at any time without cause provided that the terminated employee receives their contractual entitlements on termination (which must at least meet minimum standards set out in provincial regulations), or in the absence of contractual entitlement, reasonable notice of termination at common law.