Unjust dismissal complaint (Canada Labour Code)

The Canada Labour Code gives some dismissed employees a way to challenge a dismissal as unjust. A buyer of a federally regulated business meets the term when asking what complaints are open against the seller. This entry covers the federal Code only; for a business under provincial law, check the province’s own rules.

How a complaint runs

Under section 240(1), and subject to sections 240(2) and 242(3.1), a dismissed person may complain in writing to the Head if the employee has completed the minimum continuous employment the section sets and is not a member of a group of employees subject to a collective agreement. Section 240(1.1) bars a complaint based on substantially the same facts as a complaint made under section 246.1(1) or 247.99(1), unless that one was withdrawn. Section 240(2) sets a time limit, which the Head may extend in the cases section 240(3) lists. The Head must try to help the parties settle. If the complaint is not settled within a period the Head considers reasonable, section 241(3) has the Head refer it to the Board on the complainant’s written request. If the Board finds the dismissal unjust, section 242(4) lets it order compensation, reinstatement or other like relief. Section 242(3.1) bars the Board from considering a complaint about a person laid off for lack of work or because a function was discontinued, or where a procedure for redress is provided under Part I or Part II of the Code or another Act of Parliament.

What to ask

• Whether any complaint is open or settled, and any written reasons for dismissal given under section 241(1)
• Whether recent departures were dismissals or layoffs for lack of work
• Employment and Social Development Canada says a complaint under the Code does not prohibit a civil action for wrongful dismissal while the Labour Program investigates

See what employment liabilities come with a business and the Canada Labour Code.