BMO Closing Retail Auto Finance Business: What Employees Need to Know

What happened?

BMO (Bank of Montreal) has announced the closure of its retail auto finance business, resulting in significant layoffs. This move comes as the bank shifts focus to areas where it believes it has stronger competitive positioning.

The decision follows a sharp rise in bad debt provisions, increasing from $136 million to $492 million for the quarter ending July 31. The closure affects auto financing operations in both Canada and the United States, with BMO ending its agreements with auto dealerships as of September 15. Existing financing contracts approved before that date will still be honoured.

“By winding down the indirect retail auto finance business, we have the ability to focus our resources on areas where we believe our competitive positioning is strongest,” BMO told Reuters via a statement.

How does this impact employees?

The closure of this division has left many employees uncertain about their future. If you’ve been laid off or are facing termination, here’s what you should know:

• You Are Likely Owed Severance: Employees at BMO are entitled to full severance pay under Canadian employment law.
• What Severance Includes: Severance packages can cover salary, bonuses, commissions, benefits, and more.
• Rights Don’t Change: Even in times of corporate restructuring, your rights as an employee remain protected.

For a detailed overview of BMO’s layoff history and severance entitlements, visit our BMO Layoffs: Severance Pay and Employee Rights guide.

Key severance facts for BMO employees

If you’ve lost your job due to the closure, here’s what you need to know about severance in Canada:

• Severance Pay: Can be up to 24 months’ pay, depending on your role, age, length of service, and ability to find similar work.
• Deadlines: You have up to two years from your termination date to pursue a claim for severance.
• Misclassified Employees: Contractors may also be eligible for severance if misclassified as independent contractors.

Use our Severance Pay Calculator to estimate what you’re owed.

Steps to take if you’ve been laid off

1. Don’t Sign Anything Yet: Before accepting any severance offer, have it reviewed by an employment lawyer to ensure it’s fair.
2. Understand Your Rights: Learn about severance pay and employment standards through our BMO Layoffs Guide.
3. Contact Us for Help: Book a consultation with our team for a detailed review of your severance package and employment contract.

Talk to an employment lawyer

If you’ve been affected by layoffs at BMO, it’s critical to understand your rights and secure the compensation you’re owed. Contact us today for expert legal advice and a free consultation.

Call 1-855-821-5900 or complete a quick form to get started.