BMO Layoffs: Your Rights, Legal Options, and Severance Pay Explained

Facing a layoff from the Bank of Montreal (BMO) can be a stressful and uncertain experience. With over 55,000 employees across Canada and the U.S., BMO’s recent layoffs—such as the May 2024 reduction in investment banking roles—are part of ongoing restructuring efforts. Employees in banking, finance, customer service, and technology have been impacted by these job cuts.

At Samfiru Tumarkin LLP, we’ve spent years helping BMO employees navigate layoffs and terminations. From securing top severance packages to addressing unjust and wrongful dismissal claims, our lawyers have consistently delivered results. Our lawyers’ experience includes representing employees in high-profile cases against BMO, including Maticevic v. Bank of Montreal,as well as resolving countless other disputes without the need for a lengthy court process.

If you’ve been impacted by a layoff, you’re not alone. This blog will help you understand your severance entitlements, explore your legal options, and learn from recent cases involving BMO employees. With the right guidance, you can move forward confidently and ensure you receive what you’re owed.

What Every BMO Employee Should Know After a Layoff

1. You don’t have to rush into a decision. There’s no enforceable deadline to accept a severance offer, even if your employer gives you one. Take the time you need to review the offer, understand your rights, and assess the impact of the layoff.
2. Severance is based on more than just years of service. Factors like your age, job title, and the availability of similar work all play a role in determining the full amount you’re owed, which can be up to 24 months’ pay.
3. Your severance offer isn’t always final. A second opinion can uncover gaps in your severance package, such as unpaid bonuses, benefits, or other entitlements. Many employees are owed more than they initially realize.
4. You have legal protections. Canadian employment law is designed to ensure employees are treated fairly during layoffs. Employers must provide proper notice of termination or severance, and termination packages must meet legal standards.
5. You’re not alone in this process. Layoffs can feel overwhelming, but with the right guidance, you can navigate this situation confidently and secure the compensation you’re owed.

Watch: Key Things to Know After a Layoff, with employment lawyer Lior Samfiru on the Employment Law Show.

Lessons From Legal Cases Involving BMO

When facing a layoff, it’s natural to wonder if you’ll need to go to court to get what you’re owed. At Samfiru Tumarkin LLP, we excel at obtaining strong severance packages without resorting to a courtroom. Our focus is on securing fair compensation early in the process, helping employees avoid the time, expense, and stress of court proceedings whenever possible.

With extensive experience representing non-unionized employees across industries, including finance, banking, and technology, we provide effective, client-focused solutions to navigate layoffs and protect your rights. However, when necessary, we are fully prepared to escalate cases and advocate in court to ensure our clients receive the compensation they deserve.

Case Studies: How Courts Have Ruled in BMO Layoff Disputes

While we prioritize early resolution, it’s important to understand how courts have ruled in key cases involving BMO. These rulings reinforce employee rights and provide valuable insights:

Maticevic v. Bank of Montreal

The employee in this case had worked for BMO for several years and was terminated abruptly without adequate severance. Represented by Samfiru Tumarkin LLP employment lawyer Stephen LeMesurier, the plaintiff successfully argued that the dismissal was unjust and that BMO acted in bad faith by failing to provide proper compensation or a fair opportunity to transition to other employment. This case drew on LeMesurier’s extensive experience, including his history of securing favorable outcomes in bank-related matters.

Outcome: The labour adjudicator ruled in favor of the employee, awarding significant damages for wrongful dismissal.

Chrabalowski v. BMO Nesbitt Burns Inc.

An senior investment advisor terminated by BMO without cause sought damages for wrongful dismissal, including moral damages and compensation for the loss of clients.

Outcome: Damages for wrongful dismissal were awarded, however, the court denied the request to add additional claims because the time limit for making those claims had passed.

Roda v. Bank of Montreal

In this case, the employee argued that BMO failed to provide proper severance pay when they were dismissed, including the minimum amount of money guaranteed by law.

Outcome: The court ruled in favor of the employee, awarding damages for wrongful dismissal. The decision highlighted that BMO did not meet the legal minimum requirements for severance pay.

Ratz-Cheung v. BMO Nesbitt Burns Inc.

A BMO investment advisor was let go without cause and claimed compensation for losing the chance to sell her book of business.

Outcome: The court awarded damages for wrongful dismissal but denied the extra claim, saying there wasn’t enough evidence to support it.

Recent Developments at BMO

BMO has conducted multiple rounds of layoffs in recent years as part of cost-cutting and restructuring efforts. Here’s a timeline of significant events:

• May 2024: Layoffs in the U.S. investment banking unit as part of ongoing cost-cutting measures.
• September 2023: Closure of the retail auto finance division, resulting in job losses.
• June 2023: Capital markets division reduced by 4% (over 100 employees).
• September 2022: BMO cut a number of jobs in its capital markets because of weakening market conditions.
• December 2019: BMO laid off 2,300 employees in its most significant workforce reduction in 15 years.
• May 2016: BMO slashed 1,850 jobs as consumers shifted more of their banking online.
• December 2013: BMO laid off nearly 1,000 employees to reduce expenses.

Steps to Take If You’ve Been Laid Off by BMO

1️⃣Don’t Sign Anything Immediately: Take your time to review all termination documents carefully. Speak with a lawyer before signing anything to ensure you’re fully informed and not rushed into a decision.

2️⃣Calculate Your Severance: Use our Severance Pay Calculator to estimate what you may be owed. Knowing the value of your entitlements can help guide your next steps.

3️⃣Document Everything: Keep copies of termination letters, severance offers, and any correspondence with your employer.

4️⃣Get Legal Advice: Contact an employment lawyer to ensure your severance reflects all of your rights and entitlements.

5️⃣ Start Exploring New Opportunities: Begin updating your resume and looking for new roles. Proactively seeking work not only helps your career but also shows that you’re making an effort to mitigate your losses, which is important in severance cases.

FAQs about layoffs

Can an employment contract affect my severance?

Yes, an employment contract can affect your severance if it includes enforceable termination clauses, but many of these clauses may be invalid for several reasons.

Can I be put on a temporary layoff?

Temporary layoffs for non-unionized employees are generally not permitted by law unless specifically allowed by an employment contract or. Like any change to your job, they can be treated as a termination through a constructive dismissal claim.

Am I entitled to severance as a contractor?

You may qualify if your work relationship is closer to that of an employee, which is quite common in Canada.

Can I negotiate my severance package?

Yes! Most severance offers can be negotiated to reflect full compensation.

Why choose Samfiru Tumarkin LLP?

At Samfiru Tumarkin LLP, we’ve helped over 50,000 clients secure fair severance packages, recovering millions of dollars for employees across Canada. Our team includes lawyers with extensive experience handling BMO-related cases, ensuring you receive expert guidance. Here’s how we can assist:

• Review Your Severance Package: Ensure your offer reflects your full entitlements.
• Negotiate Better Compensation: Get the severance you deserve without unnecessary litigation.
• Representation in Wrongful Dismissal Claims: If your termination was mishandled, we’ll advocate for your rights.

Our team specializes in representing non-unionized employees in Ontario, Alberta, and British Columbia, ensuring their rights are fully protected. Beyond employment law, we also handle disability claims and personal injury cases, providing comprehensive legal support.

Get help with your severance today

Contact Samfiru Tumarkin LLP to get the compensation you’re entitled to. Call 1-855-821-5900 or request a consultation online.

Additional resources for employees

• Severance for provincially regulated employees
• Severance pay by company
• Severance packages in mass layoffs
• Termination for cause: Why severance may still be owed
• Wrongful Dismissal: What it is and how to respond
• Employment rights when a business closes

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.