Scotiabank Layoffs 2024: Severance Pay for Employees

The Bank of Nova Scotia (Scotiabank) is one of Canada’s Big Five banks. The financial institution is currently the third largest bank in the country by deposits and market capitalization. Founded in 1832, Scotiabank employed a total workforce of more than 90,000 people as of October 31, 2022.

Headquartered in Toronto, Ontario, the company has over 900 banking branches across Canada. According to Scotiabank’s Net-Zero Pathways Report, the bank is planning to achieve net-zero emissions by 2050.

Scotiabank Layoffs: Severance pay facts

Employees at Scotiabank 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 Scotiabank, 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, Scotiabank 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: Scotiabank 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: Scotiabank often offers enhanced packages to avoid potential legal claims.
• Wrongful Dismissal: If Scotiabank 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 Scotiabank 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 Scotiabank 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:

Scotiabank job cuts: Layoff timeline and analysis

Scotiabank 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:

• October 2023: Scotiabank is reducing its global workforce by approximately three per cent as it continues to look for ways to “streamline operational processes.”
• February 2023: Samfiru Tumarkin LLP has been contacted by several Scotiabank employees who claim that the bank is laying off a substantial number of workers.
• October 2015: Scotiabank is laying off an undisclosed number of workers as part of a broader cost-reduction strategy.

Steps to take if you’ve been laid off

If you’ve been affected by Scotiabank 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 Scotiabank layoffs

Does Scotiabank offer enhanced severance packages?

Yes, Scotiabank 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 Scotiabank 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 Scotiabank employees

• Severance for provincially regulated employees
• Severance pay by company
• Federally regulated employees and severance pay
• Severance packages in mass layoffs
• How severance pay works for banking industry workers
• Layoffs in Canada
• BMO Layoffs
• CIBC Layoffs
• RBC Layoffs
• TD Layoffs
• National Bank Layoffs

If you’re an Scotiabank 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.

How to properly calculate severance pay

There is a general belief that severance is one week’s pay, two weeks’ pay, or a week for every year of service an employee has with a company.

The reality is that severance for non-unionized employees in Canada is calculated using a variety of factors, including age, length of service, position, bonuses, benefits, and your ability to find new work.

ADDITIONAL RESOURCES
• Severance Pay in Ontario
• Alberta severance packages
• Understanding severance in B.C.
• Layoffs in Canada

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Don’t sign on the dotted line!

Do not accept any severance offer, termination papers, or exit agreement that you receive. Once you sign back these documents, you eliminate your ability to negotiate additional severance pay.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

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 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.