Scotiabank Severance Package: What Employees Are Typically Offered

If Scotiabank laid you off as part of its recent restructuring, the bank likely presented you with a Scotiabank severance package and asked you to sign a release.

Although these packages often appear structured and non-negotiable, they frequently do not reflect the full compensation you may be legally entitled to receive.

Before you sign anything, understand what the package includes, what it leaves out, and whether you can negotiate the offer.

What Is a Scotiabank Severance Package?

Scotiabank offers a severance package to non-unionized employees when it terminates employment without cause.

In most cases, the package includes a deadline and requires you to sign a full and final release, meaning you give up the right to pursue additional compensation.

What’s Typically Included in a Scotiabank Severance Package?

While each situation differs, most Scotiabank severance packages include:

• Salary continuation or a lump-sum payment
• Accrued but unused vacation pay
• Limited continuation of health and dental benefits
• Pension or retirement plan details
• A set deadline to accept the offer

What’s Often Missing From Scotiabank Severance Packages

Many employees are surprised when their initial offer excludes significant compensation.

Common omissions may include:

• Bonuses or incentive compensation
• Pro-rated variable pay
• Commissions
• Extended benefits coverage
• Compensation reflecting age or seniority
• Full notice entitlement under federal law

As a federally regulated employer, Scotiabank falls under the Canada Labour Code for most non-unionized employees rather than provincial employment standards laws.

That distinction can significantly impact the amount of severance owed.

Are Scotiabank Severance Packages Negotiable?

In many cases, yes.

Large financial institutions often use standardized severance templates to manage risk and control costs. These packages rarely account for:

• Long service histories
• Senior or specialized roles
• Total compensation structures
• Current job market conditions

Do You Have to Accept a Scotiabank Severance Package Immediately?

No.

Even if your termination letter includes a deadline, you do not have to accept the offer right away.

Once you sign a severance agreement, it is usually final. Taking time to understand your position can make a significant financial difference.

How Scotiabank Severance Packages Relate to Scotiabank Layoffs

Most severance packages arise from broader workforce reductions and restructuring efforts.

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

Understanding the broader context can clarify why severance 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 incentive pay
• The offer seems low relative to your years of service
• You are being pressured to sign quickly
• You hold a senior, managerial, or specialized role
• You are unsure how your pension or benefits are treated

A brief review can often identify whether additional compensation may be owed.

BMO Severance Package: Frequently Asked Questions

Is a Scotiabank severance package negotiable?

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

Does Scotiabank have to offer severance?

Most non-unionized employees terminated without cause are entitled to severance under federal law.

Are bonuses included in Scotiabank severance packages?

Not always. Bonuses and incentive compensation are commonly excluded from initial offers.

Can Scotiabank terminate me without severance?

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

Get Clarity Before You Sign

If you’ve received a Scotiabank severance package, confirm whether it reflects your full legal entitlement — not just the bank’s initial proposal.

A short review of your situation can help determine whether you may be owed more.

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.