Employee dismissal decision by Supreme Court bad for workers

Given concerns over youth unemployment, decision is particularly troubling
By Charles Lammam and Hugh MacIntyre
|Canadian HR Reporter|Last Updated: 09/06/2016

A recent Supreme Court of Canada decision on a labour regulation quietly flew under the radar. The 6-3 decision confirmed that, under Canada’s Labour Code, employers operating in federally regulated industries (such as airlines, broadcasters and banks) cannot dismiss non-union employees without first establishing a clear case for dismissal, even if employers offer a generous severance package.

On first blush, the decision appears to “protect” employees from arbitrary dismissals. In reality, it solidifies a regulation that ultimately hinders employment opportunities and overall prosperity, hurting workers in the process.

In general, when labour regulations are overly restrictive, they impede the ability of employers and workers to adjust to changing economic conditions such as a weakening economy or the introduction of new technologies that improve how products are made or how services are delivered.