In the shadow of the economy: Judicial decisions on wrongful dismissal in eras of economic uncertainty

The relationship between economy and law is a central issue in sociological theory and research. Yet, few have examined the effects of contemporary economic conditions on legal process. Employment law is one area in which the effects of the economy on legal processes are particularly relevant. With the growth of global economic competition, employers in western nations have actively restructured their operations to reduce employment costs. This transformation in the organization of labour has inundated courts with wrongful dismissal actions. Understanding how courts respond to these actions can provide greater insight into the relationship between law and shifting economic conditions.; Three perspectives on the relationship between economy and law guide this dissertation. One perspective suggests that socio-economic context shapes law by influencing the types of cases arriving to court. A second perspective suggests that the combination of socio-economic context and individual characteristics shape legal processes. Finally, neo-institutionalists suggest an endogenous relationship between law and business organizations, with law shaping organizations and organizational interpretations of law in turn shaping law. I examine these perspectives by analyzing judicial decisions on Canadian wrongful dismissal cases.; Two sets of wrongful dismissal decisions are collected, coded and analyzed. The first data set is a stratified random sample of reported and unreported wrongful dismissal decisions made in the years between 1970 and 1997. Quantitative analyses show that economic context influences wrongful dismissal judgements by shaping the types of cases arriving to judgement and by interacting with extra-legal factors to produce different case outcomes for different types of plaintiffs. Most importantly, plaintiffs dismissed for economic reasons in the 1990s' recession are treated differently than plaintiffs dismissed for non-economic reasons during the same period and plaintiffs dismissed for economic reasons in other economic periods.; Qualitative analyses of judicial decisions on “economic” dismissal provide insight into these findings. The analyses reveal that judges develop particular rationalizations of economic dismissal, which vary according to socio-economic period. In some periods these rationalizations appear to be influenced by business discourses on economic restructuring prevailing in particular economic contexts. I conclude this dissertation by discussing the theoretical, methodological and policy implications of these findings.