BMO Severance Package: What Employees Are Typically Offered

If you’ve been laid off by the Bank of Montreal (BMO), you were likely presented with a BMO severance package and asked to sign a release in exchange for compensation.

While these packages often appear structured and standardized, they frequently do not reflect what employees are legally owed under Canadian employment law — particularly for short-service, senior, or specialized employees.

Before accepting any offer, it’s important to understand what’s typically included, what may be missing, and whether the package can be negotiated.

What Is a BMO Severance Package?

A BMO severance package is compensation offered to a non-unionized employee when their employment ends due to a layoff or termination without cause.

In most cases, the offer will require you to sign a full and final release, meaning you give up the right to pursue additional compensation.

Importantly:

A severance package is not automatically equal to your full legal entitlement. It is often a starting point.

What’s Typically Included in a BMO Severance Package

Although each situation is unique, BMO severance packages often include:

• Base salary continuation or a lump-sum payment
• Accrued vacation pay
• Limited continuation of health and dental benefits
• Pension or retirement plan information
• A deadline to accept the offer

What’s Often Missing From BMO Severance Packages

Many employees are surprised to discover that important compensation elements are not included in their initial offer.

Common omissions may include:

• Earned or pro-rated bonuses
• Incentive compensation
• Commissions
• Extended benefits continuation
• Compensation reflecting age or limited job prospects
• Full notice entitlement under the law

Because BMO is a federally regulated employer, employees are typically governed by the Canada Labour Code, which can provide stronger protections than provincial standards.

Are BMO Severance Packages Negotiable?

In many cases, yes.

Large employers like BMO often use standardized templates to manage risk and control costs. These packages rarely account for an employee’s full circumstances.

Factors that can justify a higher severance amount include:

• Length of service
• Age at termination
• Seniority or leadership role
• Total compensation (salary + bonuses + benefits)
• Market conditions affecting re-employment

The first offer is rarely the final amount owed.

Do You Have to Accept a BMO Severance Package Right Away?

No.

While your termination letter may include a deadline, you are not legally required to accept the offer immediately.

Taking time to understand your rights can significantly impact the outcome. Once a severance agreement is signed, it is usually final.

How BMO Severance Packages Relate to BMO Layoffs

Most BMO severance packages arise from broader workforce reductions and restructuring initiatives.

For a full overview of job cuts and public reporting, see our guide to BMO layoffs.

Understanding the broader context can help clarify why packages are structured the way they are — and why they may be conservative.

When Should You Speak to an Employment Lawyer?

You should strongly consider legal advice if:

• Your severance package excludes bonuses or variable pay
• The offer seems low compared to your years of service
• You’re being pressured to sign quickly
• You hold a senior or specialized role
• You’re unsure how pension or benefits are being handled

A short legal review can often identify compensation gaps that are not obvious at first glance.

BMO Severance Package: Frequently Asked Questions

Is a BMO severance package negotiable?

Often, yes. Initial offers are frequently starting points rather than final entitlements.

Does BMO have to offer severance?

Most non-unionized employees are entitled to severance when laid off or terminated without cause.

Are bonuses included in BMO severance packages?

Not always — even when employees may be legally entitled to them.

Can BMO terminate me without severance?

Only in limited circumstances. Most terminations without cause require compensation.

Get Clarity Before You Sign

If you’ve received a BMO severance package, it’s important to confirm whether the offer reflects your full legal entitlement — not just the company’s initial proposal.

A brief review of your situation can help determine whether additional compensation may be owed.

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.