Unjust dismissal under the Canada Labour Code allows eligible non-unionized federally regulated employees to challenge whether their firing was actually justified.
This protection is stronger than ordinary wrongful dismissal rights. If you qualify, your employer does not avoid an unjust dismissal complaint simply by paying termination or severance compensation.
The normal deadline to file an unjust dismissal complaint is only 90 days from the date you were dismissed. If you have been fired from a federally regulated job, get advice quickly and don’t sign a release before understanding both your unjust dismissal and severance rights.
On This Page:
- 1. What Unjust Dismissal Means
- 2. Who Can File a Complaint
- 3. What Can Make a Dismissal Unjust
- 4. The 90-Day Deadline & Complaint Process
- 5. Reinstatement, Compensation & Severance
- 6. What to Do After You Are Fired
What Is Unjust Dismissal Under the Canada Labour Code?
Unjust dismissal is a federal employment-law protection that lets eligible employees challenge the reason their employer fired them.
It applies to qualifying employees in federally regulated workplaces governed by the Canada Labour Code.
This is important because most provincially regulated employers can end non-unionized employment without cause if they provide proper notice or severance.
For an employee protected by the Canada Labour Code’s unjust dismissal rules, paying termination compensation does not automatically make the dismissal acceptable. The employee can challenge whether the employer had a valid reason to dismiss them.
Is unjust dismissal the same as wrongful dismissal?
No. Unjust dismissal and wrongful dismissal deal with different problems.
- Unjust dismissal: Was the employer justified in firing you?
- Wrongful dismissal: Did the employer provide the notice and compensation you were legally owed?
A federally regulated employee can have both unjust dismissal and wrongful dismissal issues after losing their job.
Who Can File an Unjust Dismissal Complaint?
You can normally file an unjust dismissal complaint if you are a qualifying non-unionized employee of a federally regulated employer.
You generally need to meet all of these requirements:
- You worked for a federally regulated employer
- You were dismissed by the employer, including certain constructive dismissals
- You had at least 12 consecutive months of employment
- You were not covered by a collective agreement
- You were not a manager
- You file within the required deadline
Federally regulated workplaces include industries such as banking, airlines, telecommunications, interprovincial transportation, railways, shipping, pipelines and certain federal Crown corporations.
See our Canada Labour Code guide if you are unsure whether federal employment law applies to your workplace.
What if your employer calls you a manager?
A managerial title does not necessarily settle whether you are excluded from unjust dismissal protection.
Your actual responsibilities matter. If you are unsure whether you qualify, don’t let the 90-day deadline expire while debating your job title with the employer.
Can unionized employees file an unjust dismissal complaint?
No. Employees covered by a collective agreement must deal with dismissal through their union and the grievance process.
Samfiru Tumarkin LLP’s employment law team can’t assist with unionized workplace disputes.
What Can Make a Dismissal Unjust?
A dismissal can be unjust when the employer cannot show a valid and fair reason for ending the employee’s employment.
Examples can include situations where:
- The employer fires an eligible employee without a valid reason
- Performance allegations are not supported by the employee’s actual record
- The employee was not given a reasonable opportunity to correct ordinary performance problems
- The employer treats relatively minor misconduct as justification for dismissal
- The employer alleges serious misconduct but can’t prove what happened
- A major unilateral change to the job amounts to constructive dismissal
Can your employer fire you without cause?
Not simply because it is willing to pay termination and severance amounts if you are protected by the unjust dismissal provisions.
The Canada Labour Code specifically protects an eligible employee’s right to challenge the dismissal even when the employer has complied with minimum termination and severance requirements.
This is a major difference between federally regulated employees with unjust dismissal protection and most provincially regulated non-unionized employees.
What if your employer says you were fired for cause?
Being told you were fired “for cause” does not make the allegation legally valid.
The employer must be able to support the reason for dismissal. Ordinary performance problems or a relatively minor mistake do not automatically justify the most serious employment penalty.
If you are accused of serious misconduct, don’t sign a document admitting cause or agreeing that you are owed nothing.
What about layoffs or job eliminations?
A genuine layoff caused by lack of work or the discontinuance of a job function is generally outside the unjust dismissal process.
However, the employer’s label is not the final answer. Calling a dismissal a “restructuring” or “layoff” does not prevent an employee from questioning whether that was the real reason their job ended.
Even where unjust dismissal does not apply, you can still have substantial severance pay rights.
How Long Do You Have to File an Unjust Dismissal Complaint?
You normally have 90 days from the date of dismissal to file an unjust dismissal complaint.
This deadline is much shorter than the deadline for many court claims involving severance or wrongful dismissal.
Where do you file the complaint?
You first file the unjust dismissal complaint with the federal Labour Program—not directly with the Canada Industrial Relations Board.
The Labour Program will normally try to help the employee and employer resolve the dispute.
If the complaint does not settle, it can be referred to the Canada Industrial Relations Board for a decision.
Can you ask for the reason you were fired?
Yes. After an unjust dismissal complaint is filed, a written request can be made for the employer’s reasons for dismissal.
The employer must provide its written reasons within 15 days of the request.
Keep your termination letter, performance reviews, warnings, emails and other documents that relate to the reason the employer gives.
What Can You Get From an Unjust Dismissal Complaint?
An employee who proves unjust dismissal can receive compensation, reinstatement or other remedies needed to address the consequences of the dismissal.
Possible remedies include:
- Getting your job back
- Compensation for wages lost because of the dismissal
- Other appropriate relief connected to the consequences of the dismissal
Can you actually get your job back?
Yes. Reinstatement is a real remedy under the Canada Labour Code.
That makes unjust dismissal very different from an ordinary wrongful dismissal lawsuit, where the usual remedy is money rather than returning to the job.
Reinstatement is not automatic. Whether it is appropriate depends on the circumstances and the remedy ordered in your case.
Can you still claim severance?
Yes. Unjust dismissal protection does not erase your separate termination and severance rights.
Federally regulated employees can have minimum rights under the Canada Labour Code as well as greater common-law rights where they have not been validly limited by an employment contract.
If you are terminated, don’t sign a release before having your full severance package reviewed—you may be owed as much as 24 months’ pay.
The best legal route can depend on whether your priority is reinstatement, compensation, common-law severance or a negotiated settlement.
Can you have both an unjust and wrongful dismissal claim?
Yes. Filing an unjust dismissal complaint does not automatically prevent a federally regulated employee from also having a civil wrongful dismissal claim.
The two claims protect different rights. Because the procedures and remedies are different, get advice about the best strategy rather than assuming one claim replaces the other.
What Should You Do After an Unjust Dismissal?
Act quickly after a federal dismissal because the unjust dismissal deadline is only 90 days.
- Confirm that you are federally regulated. The Canada Labour Code only applies to federal workplaces.
- Check your eligibility. Look at your length of service, whether you are unionized and whether you truly work in a managerial role.
- Keep your documents. Save your employment contract, termination letter, performance reviews, discipline records, emails and severance offer.
- Write down what happened. Record the events leading to the dismissal while they are still fresh.
- Don’t sign a release. First determine your unjust dismissal and full severance rights.
- Do not miss the 90-day deadline. Severance negotiations can continue while the deadline approaches.
If your employer did not formally fire you but instead imposed a major pay cut, demotion or other fundamental change, review your constructive dismissal rights immediately. Constructive dismissal can also fall within the federal unjust dismissal process.
Unjust Dismissal FAQs
Is unjust dismissal only for federal employees?
The Canada Labour Code unjust dismissal process applies to eligible federally regulated employees. Provincially regulated employees have different termination and wrongful dismissal rights.
Do you need 12 months of service?
Yes. You normally need at least 12 consecutive months of employment with the same employer to use the unjust dismissal process.
If you have less service, you can still have termination and severance rights even though you do not qualify for an unjust dismissal complaint.
Can an employer pay severance and still unjustly dismiss you?
Yes. Paying termination or severance compensation does not prevent an eligible employee from challenging whether the dismissal itself was unjust.
Can constructive dismissal be unjust dismissal?
Yes. A sufficiently serious unilateral change to your employment can amount to constructive dismissal and support an unjust dismissal complaint if you otherwise qualify.
Do you file directly with the Canada Industrial Relations Board?
No. The complaint must first be filed with the federal Labour Program. If it is not resolved, it can later be referred to the Canada Industrial Relations Board.
Get Help With an Unjust Dismissal
Federally regulated employees can have stronger dismissal protections than they realize. The biggest risk is assuming a severance cheque ends the issue—or missing the 90-day deadline while deciding what to do.
Samfiru Tumarkin LLP helps non-unionized federally regulated employees challenge unjust dismissals, respond to improper cause allegations, pursue reinstatement where appropriate, negotiate termination settlements, and secure the full severance pay and compensation they are legally entitled to receive.
If you were fired from a bank, airline, telecommunications company, railway, interprovincial transportation company or another federally regulated workplace, get advice before signing a release or allowing the 90-day deadline to expire.