Can a severance package be used as grounds for wrongful dismissal?

Canada (Federal), Canada

The following excerpt is from Con-Way Central Express Inc. v. Armstrong, 1997 CanLII 5872 (FC):

It should be added that the case which the applicant submits is decisive to this issue, Midland Courier v. Gomes et al. (1994), 73 F.T.R. 286, does not assist the applicant. In that case, the complainant was given the option of accepting a severance package, under which she would agree not to file a complaint for wrongful dismissal, or being dismissed for cause. The complainant chose to accept the severance package but later decided to file a complaint under section 240 of the Canada Labour Code alleging wrongful dismissal. The adjudicator held that he had jurisdiction to hear the complaint despite the fact that the complainant agreed not to file a complaint when she accepted the severance package. The adjudicator determined that the release was final and binding in the event that the complainant was dismissed for cause. However, the adjudicator stated that if it was found that there was insufficient cause, the complainant would be entitled to deal with the complaint. The employer sought judicial review of the adjudicator"s decision to proceed with the complaint. In allowing the application, Mr. Justice Rouleau stated the following at page 290:

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