On March 11, 2025, Royal Bank (RBC) confirmed it has laid off an undisclosed number of employees as part of a restructuring effort tied to its “growth strategy.” It’s Canada’s largest bank and a federally regulated institution. This means you have stronger legal protections than most Canadian workers.
The country’s largest bank has been reorganizing in a bid to strengthen its global business after the $13.5B HSBC Canada deal. The latest round of job cuts at the bank reportedly affected a variety of departments, including technology and operations.
This simple guide will help you understand exactly what you’re entitled to and how to secure the maximum compensation possible.
Severance Pay for RBC Employees
Severance pay is money and benefits your employer must provide when your job ends without cause. For RBC employees, this can be a substantial amount, depending on your role, length of service, and circumstances.
What Severance Can Include
- Notice period or pay in lieu (minimum 2 weeks, often much more)
- Severance pay based on years of service
- Benefits continuation (health, dental, life insurance)
- Pension contributions and vesting considerations
- Bonus payments (including pro-rated annual bonuses)
- Stock options and RRSP matching
- Outplacement services for job search assistance
- Reference letters and LinkedIn recommendations
RBC’s first offer is typically the bare minimum required by law, not what you may actually deserve under common law.
Employer Tactics to Watch For
It’s common for large employers to:
Offer the lowest package upfront
Put pressure to sign quickly
Leave out key entitlements
Say the offer is “standard” or “non-negotiable”
In reality, severance packages are often negotiable with legal help.
Learn more about how to negotiate a higher severance package. If you believe your payout is too low, legal services for severance negotiations can help you fight for a fair settlement.
RBC is Federally Regulated – Why That Gives You Superior Protection
Unlike most Canadian employers governed by provincial law, RBC falls under the Canada Labour Code (CLC). Most federally regulated employees have greater job protection than Ontario employees.
Key Rights Under the Canada Labour Code:
- Protection from unjust dismissal (after 12 months of employment)
- Enhanced notice periods compared to provincial standards
- Right to file complaints with federal labour boards
- Protection during layoffs with specific recall rights
- Stronger severance entitlements than provincial minimums
If you’ve been with RBC for over a year, you may be able to challenge your dismissal as “unjust” even if RBC claims it’s for economic reasons.
How RBC Calculates Severance Pay (And How to Challenge It)
Under federal employment standards, employees with twelve months’ tenure are eligible for two days wages per year of employment and five days wages at the regular rate for employees of 12 months or more. However, this is just the minimum—you may be entitled to significantly more.
Factors That Increase Your Severance:
- Length of service (the longer, the better)
- Age (older employees typically receive more)
- Position level (senior roles get enhanced packages)
- Difficulty finding equivalent employment (specialized roles)
- Compensation level (higher-paid employees get longer notice)
- Company profits (RBC’s strong financial position works in your favor)
- Inducement (if you left another job to join RBC)
Common Calculation Errors RBC Makes:
- Excluding bonuses and benefits from severance calculations
- Not considering your full compensation package
- Undervaluing your role’s difficulty to replace
- Ignoring your age and service combination
- Failing to account for specialized skills
Timeline of RBC Layoffs: Multiple Waves Affecting Thousands
Understanding the broader pattern helps your case:
- 2024 Integration Period: HSBC Canada acquisition created redundancies
- December 2024: 30 executives eliminated during restructuring
- March 2025: Technology and operations departments hit hardest
- March 2025: RBC Insurance faced additional job cuts
- Ongoing: Some layoffs occurred at RBCx, the bank’s tech and innovation banking arm within the tech and operations team
Multiple waves of layoffs can strengthen wrongful dismissal claims and demonstrate that your termination may have been part of a broader cost-cutting exercise rather than performance-based.
How to Maximize Your Severance: Proven Strategies
1. Don't Sign Anything Immediately
- You typically have several weeks to review any offer
- Signing releases your right to pursue additional compensation
- Get legal advice before accepting any package
2. Document Your Value to RBC
- Compile performance reviews, client testimonials, project successes
- Calculate revenue generated or costs saved
- Gather evidence of your specialized skills and knowledge
3. Challenge Inadequate Offers
- Most initial offers can be improved through negotiation
- Point to comparable severance packages in the banking sector
- Emphasize RBC’s strong financial position and ability to pay
4. Consider Your Full Compensation
- Ensure bonuses and benefits are included in calculations
- Factor in pension losses and stock option forfeitures
- Account for the value of job search time
Download A Sample of Severance Request Letter
Not Sure What You’re Owed?
Ask yourself these quick questions:
Did RBC include your bonus or commissions?
Is your benefits coverage being extended?
Did they account for your years of service?
Are stock options or pension included?
If the answer is no—or you’re not sure—there’s a good chance you’re owed more.
RBC Layoff Tactics and Counterstrategies
Common tactics used by RBC to minimize payouts during layoffs and ways for employees to counter these strategies.
1. "Economic Necessity" Claims
- RBC Says: “These cuts are necessary for financial reasons”
- Reality Check: RBC reported strong profits; cuts are strategic, not desperate
- Your Counter: Emphasize this makes wrongful dismissal more likely
2. Pressure to Sign Quickly
- RBC Says: “This offer expires in 48 hours”
- Reality Check: Legal deadlines are much longer than this
- Your Counter: Take the time you need; rushing benefits them, not you
3. "Industry Standard" Packages
- RBC Says: “This is what everyone gets”
- Reality Check: Banking sector severances are typically higher than other industries
- Your Counter: Demand comparison to actual banking industry standards
4. Excluding Bonuses from Calculations
- RBC Says: “Bonuses aren’t part of regular compensation”
- Reality Check: Courts often include bonuses in severance calculations
- Your Counter: Provide evidence that bonuses were regular and expected
5. Misclassifying Your Employment Status
- RBC Says: “You’re not covered by federal employment standards”
- Reality Check: Most RBC employees are federally regulated
- Your Counter: Confirm your federal coverage and enhanced rights
If you’ve been laid off from RBC in 2025, don’t rush. Get your termination package reviewed so you know exactly what you’re entitled to. Many employees discover they are owed far more than what was first offered.
