What constitutes wrongful dismissal in Canada?

Wrongful dismissal in Canada occurs when an employee is terminated without just cause and without receiving proper notice or compensation in lieu of notice. Just cause refers to a legitimate, legally acceptable reason for terminating an employee's contract, such as gross misconduct. When an employer fails to provide a valid reason for the dismissal or does not follow the appropriate legal procedures for notice or compensation, this constitutes wrongful dismissal.

In Canadian employment law, the notice period is an important aspect of the employer's obligation when terminating an employee without cause. This is designed to provide some financial security to the employee while they seek new employment.

The other scenarios presented do not fit the definition of wrongful dismissal. When termination occurs after providing prior warning, this implies that the employee has been informed about the potential for termination and possibly given a chance to improve their performance, which aligns with due process. Voluntary resignation indicates that the employee has chosen to leave their job, eliminating the wrongful dismissal claim since the employer did not initiate the termination. Lastly, shortening a notice period due to an economic downturn typically reflects a legitimate business decision, especially during unforeseen circumstances. While it may impact employees, it does not inherently constitute wrongful dismissal.