Employees working for federally regulated employers in Canada may have the right to challenge their termination through an unjust dismissal complaint under the Canada Labour Code.
Unlike a typical wrongful dismissal claim, an unjust dismissal complaint may allow an eligible employee to seek reinstatement, back pay or other compensation. However, strict eligibility requirements apply, and complaints generally must be filed within 90 days of dismissal.
Understanding whether your employer is federally regulated, whether you qualify and how to file a complaint is an important first step in protecting your employment rights.
What Is Unjust Dismissal Under the Canada Labour Code?
Unjust dismissal occurs when an eligible federally regulated employee is terminated in circumstances that may be challenged under the Canada Labour Code. Unlike a typical wrongful dismissal claim, which generally focuses on whether an employee received adequate notice or compensation, an unjust dismissal complaint allows an eligible employee to challenge the dismissal itself.
Employees who successfully establish that their dismissal was unjust may be entitled to remedies such as reinstatement, back pay or other compensation under section 242 of the Canada Labour Code.
Not every termination qualifies as unjust dismissal. Eligibility depends on factors such as the employee’s length of service, position, whether their employer is federally regulated and the circumstances surrounding their termination.
Who Can Claim Unjust Dismissal?
To determine whether unjust dismissal applies to your situation, you must first establish whether your employer is federally or provincially regulated. Federally regulated employers are governed by the Canada Labour Code.
Federally regulated industries and workplaces include, but are not limited to:
- Banks and banking institutions, such as CIBC and BMO.
- Interprovincial and international transportation, including certain railway, postal and trucking services.
- Airports and air transportation, including airlines such as Air Canada.
- Telecommunications and broadcasting, including telephone, radio, television and cable systems.
- Certain fisheries and related operations.
- Grain elevators and certain grain-related operations.
- Uranium mining and processing.
- Certain First Nations activities and federal Crown corporations.
The Government of Canada provides a list of federally regulated industries and workplaces. You can also review our list of federally regulated employers in Canada.
Employees who are unsure which employment laws apply to their workplace can read our guide to federally regulated vs. provincially regulated employees in Canada.
Unjust Dismissal vs. Wrongful Dismissal
Unjust dismissal and wrongful dismissal are different legal concepts. Unjust dismissal complaints are available to eligible federally regulated employees under the Canada Labour Code. These complaints may result in remedies such as reinstatement, back pay or other compensation.
Wrongful dismissal claims generally concern whether an employer provided adequate notice of termination or compensation in lieu of notice. Depending on the circumstances, employees may also be entitled to additional damages. Unlike a typical wrongful dismissal claim, the federal unjust dismissal process may allow an employee to seek reinstatement.
Under section 242(4) of the Canada Labour Code, the Canada Industrial Relations Board may order an employer to reinstate an unjustly dismissed employee, provide compensation or take other appropriate action to remedy the dismissal.
Unjust Dismissal and the Canada Labour Code
Under section 240 of the Canada Labour Code, employees may be eligible to file an unjust dismissal complaint if they meet the following requirements:
- Have completed at least 12 consecutive months of employment with the same employer.
- Are not covered by a collective agreement.
- Are not employed in a managerial position.
- File their complaint within 90 days of dismissal, subject to limited exceptions.
Under section 242(3.1) of the Canada Labour Code, the Board cannot consider an unjust dismissal complaint where the employee was genuinely laid off because of a lack of work or the discontinuance of a function. However, describing a termination as a layoff does not automatically prevent an employee from challenging the dismissal.
Other restrictions may apply where a different statutory complaint or redress process is available.
For additional information about eligibility, visit the Canada Industrial Relations Board’s guide to unjust dismissal complaints.
How to File an Unjust Dismissal Complaint
Eligible federally regulated employees must begin the unjust dismissal complaint process through the Labour Program of Employment and Social Development Canada (ESDC).
Step 1: Complete the complaint form. Complete the Unjust Dismissal Complaint Form. Under section 240(2) of the Canada Labour Code, complaints generally must be filed within 90 days of dismissal.
Step 2: Gather supporting documents. Collect relevant documents, including your termination letter, employment agreement, severance offer and any correspondence relating to your dismissal.
Step 3: Submit your complaint. Submit the completed complaint to the federal Labour Program according to its filing instructions. The original complaint must not be filed directly with the Canada Industrial Relations Board.
Step 4: Labour Program review. The Labour Program will review the complaint and communicate with the employee about the process. Under section 241(1) of the Canada Labour Code, an employee or the Head of Compliance and Enforcement may request written reasons for the dismissal. The employer must provide those reasons within 15 days of receiving the request.
Step 5: Settlement efforts. Under section 241(2) of the Canada Labour Code, the Labour Program must endeavour to assist the employee and employer in settling the complaint. This may involve discussions, exchanging information or voluntary mediation.
Step 6: Request referral to the Canada Industrial Relations Board. If the complaint cannot be resolved, the employee may request that it be referred to the Canada Industrial Relations Board (CIRB) for adjudication. According to the CIRB’s Information Circular No. 15, the employee generally has 30 days after receiving the applicable Labour Program notice to request adjudication. The request must be submitted through the Labour Program rather than directly to the CIRB.
Step 7: CIRB proceedings. Once the complaint is referred, the CIRB will notify the parties and provide instructions for submitting responses and supporting documents. The Board may also offer further mediation. The CIRB’s adjudication procedures explain what employees and employers can expect after referral.
Step 8: Decision and remedies. The CIRB may decide the complaint based on written submissions or hold a hearing where appropriate. If it determines that the dismissal was unjust, remedies under section 242(4) of the Canada Labour Code may include reinstatement, compensation for lost wages or other appropriate relief.
Employees may obtain legal representation during the complaint process or choose to represent themselves.
Options Available to Federally Regulated Employees
Federally regulated employees who have been terminated may have several legal options depending on their circumstances, including:
- Accepting a termination or severance settlement offered by their employer.
- Seeking additional termination or severance compensation where legally available.
- Filing an unjust dismissal complaint under the Canada Labour Code if they meet the eligibility requirements.
Employees who have already signed a severance agreement may still have the right to file an unjust dismissal complaint under the Canada Labour Code. In a Federal Court of Appeal decision, the Court confirmed that a signed release does not necessarily prevent an eligible employee from pursuing an unjust dismissal complaint. Learn more about filing an unjust dismissal complaint after signing a severance agreement.
Unjust Dismissal in Ontario: Monkhouse Law’s Successful Cases
Monkhouse Law Employment Lawyers has successfully represented employees in unjust dismissal complaints, including cases involving federally regulated banks.
P.D. v. Bank of Nova Scotia: A bank employee was accused of theft and dishonesty. Following the hearing, the adjudicator found that the allegations were without merit. The employee was reinstated with full back pay.
M. v. Bank of Montreal: A bank employee was dismissed without cause, with the employer arguing that the termination was a legitimate layoff. The adjudicator disagreed and awarded the employee, who had 18 years of service, 22 months of back pay and reinstatement.
Read more about how Monkhouse Law successfully represented a bank employee seeking reinstatement following an unjust dismissal.
Speak With an Employment Lawyer About Unjust Dismissal
If you have been terminated from a federally regulated workplace in Ontario, you may have the right to challenge your dismissal under the Canada Labour Code.
Monkhouse Law Employment Lawyers assists employees with unjust dismissal complaints, severance agreements and other employment law matters. Contact Monkhouse Law today for a free 30 minute phone consultation to discuss your termination and understand your legal rights and available options.