RBC Severance Package: What Employees Are Typically Offered

If you’ve been laid off by the Royal Bank of Canada (RBC), you may have received an RBC severance package outlining what the bank is offering in exchange for signing a release.

While these packages often look standard or generous at first glance, they frequently do not reflect what employees are legally owed under Canadian employment law. Understanding what’s included — and what’s missing — is critical before you sign anything.

This guide explains how RBC severance packages typically work, what employees should watch for, and when it makes sense to seek legal advice.

What Is an RBC Severance Package?

An RBC severance package is a compensation offer provided to a non-unionized employee when their employment ends due to a layoff or termination without cause. In most cases, the package is conditional on the employee signing a full and final release, giving up the right to pursue further claims.

Importantly, a severance package is not automatically equal to your full legal entitlement. It is often a starting point for negotiation.

What’s Typically Included in an RBC Severance Package

While every situation is different, many RBC severance packages include some or all of the following:

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

What’s Often Missing From RBC Severance Packages

One of the most common issues with RBC severance packages is what they leave out.

Employees are frequently surprised to learn that the following may be missing — even when they’re legally owed:

• Bonuses or incentive compensation (earned or pro-rated)
• Commissions or variable pay
• Extended benefits coverage
• Compensation reflecting age or difficulty finding comparable work
• Full notice under the law, which can be significantly longer than what’s offered

Why RBC Severance Packages Are Often Negotiable

RBC, like other large employers, uses standardized severance templates designed to manage risk and control costs. These packages are rarely tailored to an employee’s unique circumstances.

Factors that often justify a higher severance amount include:

• Length of service
• Age at termination
• Seniority or specialized role
• Total compensation (salary + bonuses + benefits)
• Limited job prospects in the current market

Do You Have to Accept an RBC Severance Package Right Away?

No. Despite what a deadline in the offer may suggest, you are not required to accept an RBC severance package immediately.

Taking time to understand your legal rights can make a significant difference in the outcome. Once a severance agreement is signed, it is usually final.

If you’re unsure what your package is worth, a good first step is to estimate your entitlement.

How RBC Severance Packages Relate to RBC Layoffs

Most RBC severance packages arise from broader workforce reductions and restructuring. For a full overview of job cuts and public reporting, see our guide to RBC layoffs.

Understanding the broader context can help clarify why severance packages are being offered — 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’re unsure how pension or benefits are being handled
• You hold a senior, specialized, or long-tenured role

A short review can often reveal whether additional compensation is owed.

RBC Severance Package: Frequently Asked Questions

Is an RBC severance package negotiable?

In many cases, yes. Initial offers are often starting points rather than final entitlements.

Does RBC have to offer severance?

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

Are bonuses included in RBC severance packages?

Often they are not — even when employees may be legally entitled to them.

Can I be laid off by RBC without severance?

Only in limited circumstances. Most layoffs require compensation in lieu of notice.

Get Clarity Before You Sign

If you’ve received an RBC severance package, it’s important to understand whether it reflects what you’re actually owed — not just what’s being offered.

A brief review with an employment lawyer at Samfiru Tumarkin LLP can help confirm whether your package accounts for all aspects of your compensation and personal circumstances.

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.