The Federal Court of Appeal recently released its decision in Wilson v Atomic Energy of Canada Limited, 2015 FCA 17 [Wilson], a judgment confirming that section 240 of the Canada Labour Code (Code) does not prohibit federally regulated employers from terminating employees without cause. Leading up to Wilson, two lines of case law coexisted in contradiction. The first line of case law held that federally regulated employees could only be terminated for cause while the second line of case law held that federally regulated employees could be terminated without cause in accordance with sections 230 and 235 of the Code.

We have been advising clients for some time that the latter line of case law was the more appropriate and Wilson confirms this; however, Wilson also provides that an employee may still file an unjust dismissal complaint where the employee believes that the reason for his or her dismissal is unjust, notwithstanding the employer providing termination packages in excess of those entitlements provided under the Code or agreed upon amounts.

Disclaimer
This post is intended to provide general information concerning developments in the law and is not intended to provide legal advice in respect of any particular situation.