Unjust Dismissal: Employer Process Checklist for Federally Regulated Workplaces

Canada Labour Code unjust dismissal is one of the most significant — and frequently misunderstood — protections available to non-unionized employees in federally regulated workplaces. Under Division XIV of Part III of the Canada Labour Code (sections 240–246), an employee who has completed 12 consecutive months of continuous employment and who is not a manager may file a complaint alleging they were unjustly dismissed. If the complaint succeeds, an adjudicator can order reinstatement, back pay, and other remedies that go far beyond what provincial wrongful dismissal claims typically provide. For federally regulated employers — including those in air transportation, banking, telecommunications, interprovincial railways and road transport, postal and courier services, radio and television broadcasting, grain elevators, and most federal Crown corporations — understanding the unjust dismissal process is not optional. It is a core operational requirement that directly affects how you manage performance, document discipline, and execute terminations. This guide provides a step-by-step employer process checklist aligned with monitored government sources, covering who qualifies, how the complaint process unfolds, what remedies an adjudicator can impose, and how to build a defensible termination record. Eligibility Criteria Under Division XIV Section 240(1) of the Canada Labour Code allows a complaint by an employee who: has completed 12 consecutive months of continuous employment, is not a manager, and is not a member of a group of employees subject to a collective agreement. The Code also excludes employees where another procedure for redress has been provided under or pursuant to another Act of Parliament. Which Employers Are Federally Regulated? These provisions apply where the employer is federally regulated. Examples commonly recognized by the Government of Canada include banking, telecommunications, interprovincial and international transportation, broadcasting, and postal services. Step 1: Employee Files a Written Complaint (90-Day Window) Under section 240(2) of the Canada Labour Code , an employee who believes they were unjustly dismissed must make a written complaint within 90 days from the date of dismissal. Step 2: Mediation May Be Offered The Government of Canada indicates that unjust dismissal complaints may proceed through mediation. Mediation is intended to help the parties resolve the dispute without a formal decision. Step 3: Decision of the Board If the matter is not resolved, the complaint may proceed to adjudication. Under sections 240–246 of the Code, the Minister refers the complaint to an adjudicator who hears the matter and renders a binding decision. Employers should verify the current procedural steps on the Government of Canada's unjust dismissal page, as the process has been updated over time. Step 4: Remedies if the Complaint Succeeds Under section 242(4) of the Canada Labour Code , if the decision-maker finds the dismissal unjust, remedies can include: ordering the employer to pay compensation not exceeding the amount of remuneration that would, but for the dismissal, have been paid ordering reinstatement, and making any other like order that is equitable to counteract the consequences of the dismissal Employers should not assume reinstatement is automatic, but it is an available remedy under the Code. The remedies available under Division XIV can be broader than ordinary termination entitlements under Part III of the Canada Labour Code . Reinstatement Reinstatement is expressly available under section 242(4), but the Code does not say it is the default remedy. Employers should treat it as a real possibility in unjust dismissal cases. Compensation The Code allows compensation up to the amount of remuneration the employee would have received but for the dismissal. Depending on the circumstances, this may include lost wages and benefits. Other Equitable Orders Section 242(4) also permits 'any other like remedy' that is equitable and necessary to counteract the consequences of the dismissal. Any examples beyond that statutory wording should be supported by specific authority before being presented as standard remedies. Under the Canada Labour Code , notice of termination or pay in lieu of notice is not required if the employee is dismissed for just cause. However, the standard for establishing just cause before a federal adjudicator is rigorous and employer-friendly only when supported by thorough documentation. What Constitutes Just Cause Federally? Federal adjudicators generally assess just cause using principles drawn from labour arbitration jurisprudence. The following categories are commonly recognized: Serious misconduct: Theft, fraud, violence, harassment, insubordination, or breach of trust Chronic performance deficiency: Persistent failure to meet clearly communicated performance standards despite progressive discipline Dishonesty: Falsification of records, misrepresentation on