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2. Labour Relations >
3. Federal Mediation and Conciliation Service >
4. Arbitration

Arbitration

Arbitration is a process that involves a professional arbitrator who resolves certain types of disputes governed by the Canada Labour Code, such as grievances, unjust dismissals and wage recovery. The arbitrator examines both sides of the dispute and renders a binding decision.

The Federal Mediation and Conciliation Service coordinates the appointment of these arbitrators.

• Grievance Arbitrators: The interpretation and application of a collective agreement sometimes gives rise to misunderstandings and disagreements that union and management are unable to resolve. A grievance may then be referred to arbitration.
• Unjust Dismissal Adjudicators: Adjudicators are appointed to hear complaints of unjust dismissal. Part III (Labour Standards) of the Canada Labour Code (provides non-unionized workers with the right to file a complaint if they believe they have been unjustly dismissed from their employment. If a complaint cannot be resolved with the assistance of an inspector from the Labour Program, the complainant may request that the Minister appoint an adjudicator to hear the complaint and make a decision.
• Wage Recovery Referees: Referees are appointed to hear wage recovery appeals. Part III (Labour Standards) of the Canada Labour Code gives aggrieved non-unionized workers the right to file a complaint. Where employees, under federal jurisdiction, file a complaint alleging that the employer has not paid them the wages or other amounts to which they were entitled, a Labour Program inspector may issue a payment order to the employer or conclude that the complaint is unfounded. The employer or the employee may appeal the inspector's decision to the Minister of Labour, who then appoints a wage recovery referee to hear the appeal and make a ruling.

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Date Modified:

2012-04-27