BMO: Severance Packages
Bank of Montreal (BMO) is a Canadian multinational investment bank and financial services company.
With roots going back to 1817, BMO is currently the eighth largest bank in North America by assets — providing personal and commercial banking, global markets, and investment banking services to more than 12 million customers.
Headquartered in Montreal, Quebec, the bank has locations in major cities across Canada, including Toronto, Calgary, and Vancouver.
According to LinkedIn, BMO employs a global workforce of more than 51,000 people.
Recent layoffs at Bank of Montreal
- September 2022: 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.
Severance for BMO employees
In Canada, Bank of Montreal employees can get up to 24 months of severance pay when they are fired or laid off from their job. This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.
Severance is the compensation a non-unionized worker receives from their employer when they are fired without cause.
Even if you are fired for cause, it’s very likely that you are still entitled to full severance pay because employees often don’t meet the conditions necessary for this type of dismissal.
LEARN MORE
• Severance packages in mass layoffs
• Rights to severance for federally regulated employees
• Severance for provincially regulated employees
Regardless of a company’s grasp on employment law, they are legally required to provide proper compensation following a termination.
This concept applies during challenging economic conditions, downsizing, the closure of a business, or major public health events such as the COVID-19 pandemic.
WATCH: Employment lawyer Lior Samfiru explains everything you need to know about severance pay on an episode of the Employment Law Show.
The employment lawyers at Samfiru Tumarkin LLP have represented numerous banking sector employees over the years in severance package negotiations.
We have successfully secured much larger amounts for individuals employed across a variety of positions, from entry level jobs to executives.
How to properly calculate severance pay
Employers often incorrectly calculate severance pay. There is a belief that severance pay is one week’s pay, two weeks’ pay, or a week for every year of service an employee has with the company.
For non-unionized employees, the main factors of termination or severance pay include age, length of service, position, bonuses, benefits, and the ability to find new work.
If you work at the Bank of Montreal, you are likely a federally regulated employee. That means your severance package must consider:
- Your minimum severance as a federally regulated employee, as set out by the Canada Labour Code.
- Your full severance pay according to our legal system (common law) which can be as much as 24 months’ pay.
To figure out how much compensation you may be entitled to, use our firm’s Pocket Employment Lawyer.
ADDITIONAL RESOURCES
• Severance Pay in Ontario
• Alberta severance packages
• Understanding severance in B.C.
• Layoffs in Canada
Don’t sign on the dotted line!
Do not accept any severance offer, termination papers, or exit agreement that BMO may provide you with.
Once you sign back these documents, you eliminate your ability to negotiate a fair and proper severance package.
Generally speaking, if an employee does not receive the proper amount of severance pay when they lose their job, they may be considered to have been wrongfully dismissed. An employment lawyer at Samfiru Tumarkin LLP can analyze your situation and explain how much compensation you may be owed.
Talk to an employment lawyer
The experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals across the country. In addition to severance package negotiations, our team has experience securing solutions for the following employment matters:
Our lawyers in Ontario, Alberta, and B.C. stand ready to help you solve your workplace issues.
If you are a non-unionized employee who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.
Disclaimer: The materials above are provided as general information about the rights of 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.