IBM Canada: Severance Packages
IBM Canada is a wholly-owned subsidiary of the International Business Machines (IBM) Corporation, which is an American multinational technology company.
The tech giant provides a variety of solutions, including computer components, software, and consulting services.
Founded in 1911, IBM employs more than 11,000 people in Canada, according to LinkedIn.
In addition to its Canadian headquarters in Markham, Ontario, the tech giant has offices in major cities across the country, including Ottawa, Toronto, Calgary, and Vancouver.
In addition to North America, IBM has operations in more than 170 countries, including France, Spain, and Australia.
Recent layoffs at IBM
- April 2024: Long-serving IBM Canada employees have reportedly been let go.
- March 2024: IBM is reportedly eliminating jobs in its marketing and communications division.
- April 2023: Unconfirmed online reports that IBM has laid off dozens to hundreds of employees in Canada, including in Toronto and Ottawa.
- Red Hat, a subsidiary of IBM, laid off 4 per cent of its workforce in an effort to “rebalance.”
- Kyndryl, a 2021 spinoff from IBM, is also cutting approximately 2,000 jobs as the company works to transform and streamline its internal systems.
- January 2023: IBM announced that it’s laying off around 3,900 employees after missing its annual cash target.
- June 2022: IBM confirms it’s eliminating its entire Russian workforce as the company ends its operations in the country.
- May 2020: IBM confirmed to multiple media outlets that it’s conducting layoffs, but refused to provide specific details about the workers affected.
- June 2019: IBM is cutting a small percentage of its workforce. A source claims that more than 1,000 workers could be affected.
- March 2014: IBM is laying off a significant portion of its domestic workforce as the tech giant looks to cut approximately 13,000 jobs globally.
Severance pay for IBM Canada employees
In Canada, non-unionized employees at IBM 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, and hourly in Ontario, Alberta, or B.C.
Severance is the compensation a non-unionized worker in Canada 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 for provincially regulated employees
• Rights to severance for tech sector staff
• Severance packages in mass layoffs
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 tens of thousands of employees over the years in severance package negotiations.
- LEARN MORE: Severance pay by company
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.
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 IBM may provide you with.
Once you sign these documents, you eliminate your ability to negotiate your severance package.
Generally speaking, if an employee doesn’t receive the proper amount of severance pay when they lose their job, it’s possible that they have been wrongfully dismissed.
An employment lawyer at Samfiru Tumarkin LLP can review your situation and explain how much compensation you are legally entitled to.
Talk to an employment lawyer
The knowledgeable 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 lawyers have 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 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.