You Cannot Fire A Federally Regulated Employee Without Just Cause

The Supreme Court of Canada ("SCC") has clearly determined that sections 240 to 246 of the Canada Labour Code ("Code") displaces the ability of an employer to fire a federally regulated employee without just cause.¹ In other words, employers cannot simply provide the employee with a severance package and dismiss the employee without having cause to terminate the employment.²

Employers have the right to terminate employees for cause.³ Employees who are arbitrarily dismissed without just cause can seek out their entitlements from three sources:

1. legislation;
2. reasonable notice of termination or pay in lieu thereof at common law; and
3. termination provisions contained in an enforceable employment contract.