Unjust Dismissal Clarified: Without Cause Terminations Not Prohibited By The Canada Labour Code

The unjust dismissal sections of the Canada Labour Code ("Code") were, at one time, thought to have provided enhanced job security for non-unionized individuals employed in the federal sector by significantly narrowing the circumstances in which an employer could discharge an employee. The Code applies to federally regulated employers, primarily those in the banking, broadcasting, telecommunication, inter-provincial transportation and aeronautics sectors. Although there were some contrary authorities, the prevailing view was that a non-union, non-managerial employee with more than 12 months of service could only be dismissed because of lack of work or the discontinuance of a function unless the employer could establish "cause". Cause was a relatively high standard; comparable to the concept of "just cause" applicable to most unionized employees.