TD Bank Layoffs 2025: What You’re Owed & How to Get It

TD Bank layoffs have impacted thousands of employees across Canada and beyond in recent years. If you’ve recently been let go – or believe your job may be at risk – you may be entitled to substantial severance pay under Canadian employment law.

This guide explains what TD employees need to know about their rights, how severance is calculated, and the critical steps to take before accepting any package.

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About TD Bank

Toronto-Dominion Bank (TD Bank) is one of the largest banks in Canada and North America. With over 95,000 employees worldwide and more than 27 million customers, TD operates across Canada, the U.S., and globally in areas like personal banking, wealth management, and commercial services.

The bank’s roots date back to 1855, and it was officially formed in 1955 through the merger of The Bank of Toronto and The Dominion Bank. TD is federally regulated under the Canada Labour Code (CLC), which provides stronger legal protections to employees than provincial laws.

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Severance Pay Overview for TD Employees

If you’re a non-unionized employee at TD Bank and have been laid off, you’re likely entitled to more than the minimum standards listed in your termination letter. Under Canadian law, full severance pay can be worth as much as 24 months’ salary – and must reflect your personal circumstances, not just company policy.

What severance can include:

• ✔️ Base salary
• ✔️ Bonuses (earned and pro-rated)
• ✔️ Commissions
• ✔️ Benefits continuation
• ✔️ Vacation pay
• ✔️ Pension contributions
• ✔️ Car allowance or other perks

Even if you’re classified as an “independent contractor,” you could still qualify for severance if you’ve been misclassified.

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TD is Federally Regulated – Why That Matters

Because TD Bank is a federally regulated employer, its employees are protected under the Canada Labour Code (CLC) – not provincial employment standards. This distinction gives non-unionized TD workers access to stronger legal protections, especially when it comes to terminations.

Key rights under the CLC:

• ✔️ Protection from dismissal with just cause (for most non-managerial roles with over 12 months of service)
• ✔️ The ability to file an unjust dismissal complaint under Division XIV
• ✔️ Potential reinstatement to your job in some cases
• ✔️ Additional compensation for damages or lost income

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How TD Calculates Severance Pay

Severance pay is not a flat rate. TD employees are entitled to severance based on several personal factors that reflect how difficult it may be for them to secure comparable work.

The most common factors include:

• ✔️ Length of service – More years often means more pay. However, short-service workers are often owed disproportionately larger severance packages than longer-serving employees.
• ✔️ Age – Older employees receive more due to job market challenges.
• ✔️ Position – Senior or specialized roles tend to result in higher severance.
• ✔️ Total compensation – Includes not just salary, but bonuses, commissions, and benefits.
• ✔️ Job prospects – If your role is niche or limited in the market, you are entitled to more.

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Timeline of TD Layoffs

TD Bank has conducted multiple rounds of layoffs over the past decade, often tied to restructuring, cost-cutting, and shifting business strategy. These job cuts have impacted employees at all levels – both in Canada and abroad.

Below is a timeline of notable layoffs at TD Bank:

• May 22, 2025: TD Bank is cutting 2,000 jobs as part of a major restructuring plan expected to save $650 million.
• November 2023: TD eliminated approximately 3% of its workforce as part of a broad realignment effort.
• October 2015: TD cut an undisclosed number of roles to reduce costs during a challenging fiscal period.
• April 2015: TD laid off several senior executives during an internal “organizational reveiw.”

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How to Maximize Your Severance

If you’ve been laid off by TD Bank, it’s critical not to accept their first offer without understanding your full legal rights. Most employees are offered far less than what they’re actually owed, which can be up to 24 months’ pay – especially when bonuses, commissions, or benefits are left out.

Here’s how to protect your financial future and maximize your severance:

1. Don’t sign anything right away.
TD may give you a tight deadline, but it’s not legally binding.

2. Review your total compensation.
Severance isn’t just about salary – include bonuses, commissions, vacation pay, car allowance, and more.

3. Negotiate enhancements.
You may be able to push for extended health benefits, additional compensation, or even outplacement services.

4. Document everything.
Keep copies of all severance offers, termination letters, and communication with TD’s HR department.

4. Get a legal opinion.
An employment lawyer at Samfiru Tumarkin LLP can identify issues in your package that you will miss on your own.

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Employer Tactics to Watch For

When a company like TD initiates a layoff, the goal isn’t just operational efficiency – it’s also cost containment. That often means offering lowball severance packages or pressuring employees to accept quickly. Here are the most common tactics to watch for:

Common strategies employers use during layoffs:

• ⚠️ Pressure to sign quickly: TD may set a deadline (e.g. 5 business days) – but this is not legally binding.
• ⚠️ Low initial offers: Many severance packages start far below what’s owed by law.
• ⚠️ Excluding bonuses or commissions: These are often left out, even if you earned them before the layoff.
• ⚠️ Misclassification as a contractor: Some workers are told they aren’t “employees” when in fact they are entitled to full severance.
• ⚠️ Termination clauses: Your employment contract may contain language that attempts to reduce the severance you are owed. In many cases, these clauses are unenforceable.
• ⚠️ Allegations of ‘just cause’: Some employers claim you were fired for misconduct to try to avoid paying severance – often without legal basis.

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Real Legal Cases Involving TD Bank

Employees have successfully taken legal action TD Bank for terminations that violated their rights. These real-world cases show how the law applies – and what’s possible when employers overstep.

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FAQs About TD Layoffs

Does TD offer enhanced severance packages?

Yes – but those packages are often designed to minimize what TD pays. You may be owed significantly more than what’s initially offered, especially if your severance doesn’t include bonuses, commissions, or benefits continuation.

Can TD lay me off without notice?

Only if you’re given adequate severance pay. If you’re not properly compensated, it may be a case of wrongful dismissal, even in a restructuring.

What if I was let go just before bonus season?

You may still be entitled to a pro-rated bonus or even the full bonus, depending on the terms of your employment and how long you worked during the bonus year.

Do I have to accept the first severance offer?

No. You’re under no obligation to sign immediately – and in most cases, you shouldn’t. Expert legal review is essential to ensure you’re getting everything you’re owed.

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Additional Resources for TD Employees

Learn more about your severance rights and how the law applies to layoffs in banking and federally regulated industries:

• Severance for federally regulated employees
• Severance pay in mass layoffs
• Severance for banking industry employees
• Understanding layoffs in Canada
• Severance rules in Ontario
• Severance rules in Alberta
• Severance rules in British Columbia

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Legal Review You Can Trust

This guide was prepared by Samfiru Tumarkin LLP – Canada’s leading employment law firm for non-unionized employees. We’ve helped over 50,000 people secure the compensation they deserve, and we’re the most positively reviewed law firm in the country, with over 2,000 five-star reviews on Google.

Our employment lawyers have represented employees at every major bank in Canada, including TD, RBC, BMO, and Scotiabank, helping them navigate complex severance situations with confidence.

Trusted by Thousands. Respected Nationwide

With unmatched experience in severance law – and a reputation built on results, not time-consuming court battles – we’re the team Canadians rely on when their job or financial future is at stake.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.