Still Not Worth The Paper It's Written On: Release Won't Oust Canada Labour Code Unjust Dismissal Complaints

Bank of Montreal v. Li affirms that a release will not preclude an employee from making an unjust dismissal complaint pursuant to the Canada Labour Code.

The Federal Court of Canada in Bank of Montreal v. Li ("Bank of Montreal") recently upheld a decision of an adjudicator that a settlement agreement and release signed by an employee did not preclude the employee from filing an unjust dismissal complaint under section 240 of the Canada Labour Code (the "Code"). Even though the settlement agreement and release contemplated that the employee would receive $27,154 in exchange for the employee releasing their employer from any actions, claims, damages and proceedings, the Court reaffirmed its decision in National Bank of Canada v. Canada (Minister of Labour) ("National Bank") that such agreements will not protect an employer from unjust dismissal complaints, but may affect the remedy awarded to the employee if the adjudicator concludes that the employee was