TD Severance Package: What Employees Are Typically Offered

If TD has terminated your employment as part of its recent restructuring, the bank likely presented you with a TD severance package and asked you to sign a release.

Although these packages often appear standardized and final, they frequently do not reflect the full compensation you may be legally entitled to receive.

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

What Is a TD Severance Package?

When TD terminates a non-unionized employee without cause, it offers a severance package in exchange for a signed release.

TD operates as a federally regulated bank, so the Canada Labour Code governs most non-unionized employees rather than provincial employment standards laws.

That distinction matters. Federal protections can affect:

• Notice entitlements
• Termination rights
• Severance calculations

What’s Typically Included in a TD Severance Package?

While every situation differs, TD severance packages commonly include:

• Salary continuation or a lump-sum payment
• Accrued vacation pay
• Temporary continuation of benefits
• Pension or retirement plan information
• A deadline to accept the offer

What’s Often Missing From TD Severance Packages

Initial offers often leave out significant compensation.

A TD severance package may exclude:

• Earned or pro-rated bonuses
• Incentive compensation
• Commission income
• Stock or equity-related compensation
• Extended benefits coverage
• Compensation reflecting long service or senior roles

Because federal law applies, employees may be entitled to more than the bank’s initial offer suggests.

Are TD Severance Packages Negotiable?

In many cases, yes.

Large banks frequently rely on standardized severance formulas. These templates do not always account for individual circumstances.

Factors that may justify higher compensation include:

• Long tenure
• Executive or management roles
• Specialized positions
• Market conditions affecting re-employment

Do You Have to Accept a TD 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 TD Severance Packages Relate to TD 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 TD layoffs.

The broader context explains why the bank structures severance packages the way it does — and why those offers 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

TD Severance Package: Frequently Asked Questions

Is a TD severance package negotiable?

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

Does TD have to provide severance?

Most non-unionized employees terminated without cause are entitled to severance under the Canada Labour Code.

Are bonuses included in TD severance packages?

Not always. Initial offers frequently exclude bonuses and variable compensation.

Can TD terminate me without severance?

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

Get Clarity Before You Sign

If you’ve received a TD 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.