BMO Layoffs 2024: Severance Pay and Employee Rights

The Bank of Montreal (BMO) is one of Canada’s largest financial institutions, employing over 55,000 people across roles in retail banking, wealth management, investment banking, and technology. As a major employer, BMO plays a critical role in the Canadian economy. However, like many large corporations, it periodically undergoes workforce reductions, which can impact employees in various departments.

If you’re a BMO employee facing layoffs in 2024, understanding your rights is essential. Whether you’re part of a large restructuring or a smaller workforce adjustment, you could be entitled to significant severance pay. At Samfiru Tumarkin LLP, we’ve helped thousands of Canadian employees secure the compensation they deserve after losing their jobs.

This guide explains your rights as a BMO employee, how severance pay is calculated, and what steps to take if you’ve been laid off. We also provide details on recent BMO job cuts to keep you informed about company-wide changes, along with legal insights drawn from notable cases.

Employees at BMO: Severance pay facts

Employees at BMO are entitled to up to 24 months of severance pay when laid off or terminated without cause, whether full-time, part-time, or hourly. Independent contractors may also qualify for severance if they have been misclassified.

Key Severance Facts

• Severance Pay: Can reach up to 24 months’ pay, based on factors like position, tenure, age, and ability to find similar work. Learn more about severance pay, and explore resources that explain how it works in Ontario, Alberta, and B.C.
• What’s Included: In addition to salary, severance may cover bonuses, commissions, and other compensation.
• Deadlines: You have up to two years from termination to pursue severance, regardless of any employer-imposed deadlines, which are not legally enforceable.
• Better Packages: We have successfully secured much larger amounts for individuals employed across a variety of positions, from entry-level jobs to executives.

Layoffs at BMO, like any other Canadian employer, must comply with employment laws. Employees are entitled to severance packages if they are laid off, even during corporate restructuring or business closures.

Historically, BMO has faced layoffs during specific times of the year, such as the fall, which often coincides with bonus periods. It’s important to note that bonuses, commissions, and other compensation may still be owed as part of your severance package, even if your employment ends before payout dates.

Your rights when facing a layoff

• Notice of Termination: BMO must provide advance notice or pay in lieu of notice.
• Severance Pay: Compensation depends on your age, position, length of service, and ability to find similar work.
• Enhanced Severance: BMO often offers enhanced packages to avoid potential legal claims.
• Wrongful Dismissal: If BMO doesn’t meet its obligations, you have grounds for a wrongful dismissal claim.
• Temporary Layoffs: Even a temporary pause in your work can result in a severance package through a constructive dismissal claim.

Employer tactics to watch for

Employers may employ certain strategies during layoffs to minimize their obligations:

• Pressuring Employees to Sign Quickly: Avoid signing agreements under pressure. Employer deadlines for severance acceptance are not legally binding.
• Misclassification of Roles: Many independent contractors are actually employees entitled to severance.
• Leaving Out Bonuses and Other Compensation: Ensure severance includes all entitlements, such as commissions or accrued bonuses.

How is severance pay calculated for BMO employees?

Severance pay is meant to bridge the gap between jobs, offering financial stability as you transition. It’s based on several factors:

• Length of Service: Longer tenure often means higher severance.
• Age: Older employees may be entitled to more due to challenges in finding comparable work.
• Position: Senior roles or specialized positions may attract higher compensation.
• Availability of Similar Work: If your skills are in a niche market, severance may increase.
• Employment Contract: A termination clause in your employment agreement may attempt to limit your severance, but these are often unenforceable.

Many employees mistakenly believe they are only entitled to the minimum ESA amounts. In reality, you may be owed up to 24 months’ pay. Use our BMO Severance Pay Calculator to get a quick estimate.

To learn more about how severance works in Canada, watch this quick primer featuring employment lawyer Lior Samfiru:

BMO Job Cuts: Layoff timeline and analysis

BMO has announced several layoffs over recent years due to recessions, downsizing, restructuring, cost-cutting measures, and shifts in operational focus. Below is a timeline of recent layoffs:

• September 2023: BMO is ending its retail auto finance business, laying of staff as bad debt piles up due to slowing economy.
• June 2023: BMO is reportedly reducing its capital markets division by four per cent, or more than 100 employees, as it grapples with slower trading and investment banking activity.
• September 2022: BMO is cutting an undisclosed number of jobs in its capital markets unit in response to weakening market conditions.
• December 2019: BMO is laying off approximately 2,300 employees — marking the most dramatic reduction by a Canadian bank in more than 15 years.
• May 2016: BMO is slashing approximately 1,850 jobs as consumers shift more of their banking online and technological advancements allow the bank to digitize some of its operations.
• December 2013: BMO is laying off nearly 1,000 employees in a bid to reduce expenses and improve its overall operations.

Steps to take if you’ve been laid off

If you’ve been affected by BMO layoffs, here’s what you need to do:

1. Don’t Sign Anything Right Away: Avoid signing severance agreements until you’ve reviewed them with an employment lawyer at Samfiru Tumarkin LLP.
2. Understand Your Entitlements: Use our Severance Pay Calculator to determine what you’re owed.
3. Speak to an Employment Lawyer: Contact us for a consultation to review your severance package.
4. Document Everything: Keep records of termination notices, severance offers, and communication with HR.

Why choose Samfiru Tumarkin LLP?

Unlike firms that rely heavily on courtroom victories, our proven strategy focuses on maximizing severance packages early in the claim process, helping clients avoid the time, cost, and stress of litigation. With extensive courtroom experience to fall back when necessary, we excel at securing generous severance outcomes quickly and efficiently for our clients.

By prioritizing resolution and client-focused strategies, we’ve successfully helped thousands of non-unionized employees navigate layoffs and terminations with confidence.

FAQs about BMO layoffs

Does BMO offer enhanced severance packages?

Yes, BMO often offers enhanced severance packages to avoid legal disputes. However, these offers may still fall short of what you are owed under common law.

Can BMO lay me off without notice?

Not without compensating you appropriately. If proper notice or severance pay isn’t given, you have been wrongfully dismissed, and are owed additional pay.

Resources for BMO employees

• Severance for provincially regulated employees
• Severance pay by company
• Federally regulated employees and severance pay
• Severance packages in mass layoffs
• Layoffs in Canada

If you’re a BMO employee facing layoffs, you don’t have to navigate this challenging time alone. Our experienced employment lawyers in Ontario, Alberta, and B.C. are ready to stand by your side, protect your rights, and secure the severance and compensation you’re owed. Beyond employment law, Samfiru Tumarkin LLP also offers expert guidance in disability claims and personal injury cases, ensuring comprehensive support for all your legal needs.

As a non-unionized employee, you deserve clear advice and effective solutions for your employment issues. Contact us today or call 1-855-821-5900 for a consultation and take the first step toward the compensation you deserve.

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.