Federally Regulated Employers Can Now Terminate Without Just Cause

The recent Federal Court of Appeal decision in Wilson v Atomic Energy of Canada Limited addressed the long-standing question of whether federally regulated employers under the Canada Labour Code can terminate employees without just cause. Judge Stratas at the Federal Court of Appeal found that federally regulated employers may dismiss employees without cause upon reasonable notice or pay in lieu thereof, stating that:

"In conclusion...Part III of the Canada Labour Code does not jettison the common law principles which govern the termination of an employment relationship. Had Parliament intended to implement a drastically different legal order in which common law principles played no role, it would have said so in plain language."