The appellant employer dismissed the respondent employee for unsatisfactory work performance (non-culpable incompetence).
The arbitration board found the dismissal was without just cause because the employer failed to follow the Re Edith Cavell criteria.
The board awarded damages in lieu of reinstatement under s. 142(2) of the Labour Relations Code, finding reinstatement inappropriate.
The Court of Appeal set aside the board's decision, holding that s. 142(2) did not apply to non-culpable dismissals and ordering reinstatement.
The Supreme Court of Canada allowed the appeal, holding that the standard of review for both the board's interpretation of s. 142(2) and its remedial award was reasonableness.
The Court found the board's broad interpretation of s. 142(2) to include non-culpable dismissals was reasonable, and its decision to award damages in lieu of reinstatement due to exceptional circumstances (the breakdown of the employment relationship) was also reasonable.
