RBC Layoffs 2025: What You’re Owed & How to Get It

RBC layoffs have impacted thousands of employees across Canada and beyond in recent years. If you’ve recently been let go – or believe your job may be at risk – you may be entitled to substantial severance pay under Canadian employment law.

This guide explains what RBC employees need to know about their rights, how severance is calculated, and the critical steps to take before accepting any package.

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About RBC

Royal Bank of Canada (RBC) is one of Canada’s largest banks and financial institutions in Canada, with a global presence across banking, wealth management, and capital markets. Headquartered in Toronto, RBC serves more than 17 million clients in 29 countries and employs over 97,000 people worldwide. Its workforce spans a wide range of roles, including technology, finance, customer service, and operations.

The bank was founded in 1864 in Halifax, Nova Scotia. RBC is federally regulated under the Canada Labour Code (CLC), which provides stronger legal protections to employees than provincial laws.

On May 29, 2025, The Globe and Mail reported that RBC is requiring employees to work from the office four days a week, starting in the fall.

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Severance Pay Overview for RBC Employees

If you’re a non-unionized employee at RBC and have been laid off, you’re likely entitled to more than the minimum standards listed in your termination letter. Under Canadian law, full severance pay can be worth as much as 24 months’ salary – and must reflect your personal circumstances, not just company policy.

What severance can include:

• ✔️ Base salary
• ✔️ Bonuses (earned and pro-rated)
• ✔️ Commissions
• ✔️ Benefits continuation
• ✔️ Vacation pay
• ✔️ Pension contributions
• ✔️ Car allowance or other perks

Even if you’re classified as an “independent contractor,” you could still qualify for severance if you’ve been misclassified.

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RBC is Federally Regulated – Why That Matters

Because RBC is a federally regulated employer, its employees are protected under the Canada Labour Code (CLC) – not provincial employment standards. This distinction gives non-unionized RBC workers access to stronger legal protections, especially when it comes to terminations.

Key rights under the CLC:

• ✔️ Protection from dismissal with just cause (for most non-managerial roles with over 12 months of service)
• ✔️ The ability to file an unjust dismissal complaint under Division XIV
• ✔️ Potential reinstatement to your job in some cases
• ✔️ Additional compensation for damages or lost income

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How RBC Calculates Severance Pay

Severance pay is not a flat rate. RBC employees are entitled to severance based on several personal factors that reflect how difficult it may be for them to secure comparable work.

The most common factors include:

• ✔️ Length of service – More years often means more pay. However, short-service workers are often owed disproportionately larger severance packages than longer-serving employees.
• ✔️ Age – Older employees receive more due to job market challenges.
• ✔️ Position – Senior or specialized roles tend to result in higher severance.
• ✔️ Total compensation – Includes not just salary, but bonuses, commissions, and benefits.
• ✔️ Job prospects – If your role is niche or limited in the market, you are entitled to more.

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Timeline of RBC Layoffs

RBC has conducted multiple rounds of layoffs over the past decade, often tied to restructuring, cost-cutting, and shifting business strategy. These job cuts have impacted employees at all levels – both in Canada and abroad.

Below is a timeline of notable layoffs at RBC:

• March 10, 2025: RBC announced that it has dismissed an undisclosed number of employees as part of its “growth.” Shortly afterwards, the bank engaged in a second round of layoffs, according to numerous people impacted by the layoffs.
• December 2024: RBC has laid off 30 senior executives since September as part of an ongoing restructuring.
• November 2023: RBC’s Q4 2023 earnings release revealed that the bank cut more than 500 jobs in its capital markets division.
• September 2023: RBC is reportedly eliminating a number of positions within its capital markets division.
• August 2023: RBC is planning to reduce its number of full-time equivalent (FTE) employees by one to two per cent in Q4 2023.
• May 2023: RBC is eliminating approximately one per cent of its workforce — claiming that it’s overstaffed.
• April 2023: RBC is cutting more than a dozen jobs in its U.S. investment banking division after reviewing its business strategy.
• September 2022: RBC is reducing the size of its U.S. investment banking division by approximately one per cent.
• June 2017: RBC announced that it is eliminating approximately 450 jobs in order to meet the “evolving needs” of its clients.

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How to Maximize Your Severance

If you’ve been laid off by RBC, it’s critical not to accept their first offer without understanding your full legal rights. Most employees are offered far less than what they’re actually owed, which can be up to 24 months’ pay – especially when bonuses, commissions, or benefits are left out.

Here’s how to protect your financial future and maximize your severance:

1. Don’t sign anything right away.
RBC may give you a tight deadline, but it’s not legally binding.

2. Review your total compensation.
Severance isn’t just about salary – include bonuses, commissions, vacation pay, car allowance, and more.

3. Negotiate enhancements.
You may be able to push for extended health benefits, additional compensation, or even outplacement services.

4. Document everything.
Keep copies of all severance offers, termination letters, and communication with RBC’s HR department.

4. Get a legal opinion.
An employment lawyer at Samfiru Tumarkin LLP can identify issues in your package that you will miss on your own.

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Employer Tactics to Watch For

When a company like RBC initiates a layoff, the goal isn’t just operational efficiency – it’s also cost containment. That often means offering lowball severance packages or pressuring employees to accept quickly. Here are the most common tactics to watch for:

Common strategies employers use during layoffs:

• ⚠️ Pressure to sign quickly: RBC may set a deadline (e.g. 5 business days) – but this is not legally binding.
• ⚠️ Low initial offers: Many severance packages start far below what’s owed by law.
• ⚠️ Excluding bonuses or commissions: These are often left out, even if you earned them before the layoff.
• ⚠️ Misclassification as a contractor: Some workers are told they aren’t “employees” when in fact they are entitled to full severance.
• ⚠️ Termination clauses: Your employment contract may contain language that attempts to reduce the severance you are owed. In many cases, these clauses are unenforceable.
• ⚠️ Allegations of ‘just cause’: Some employers claim you were fired for misconduct to try to avoid paying severance – often without legal basis.

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Real Legal Cases Involving RBC

Employees have challenged RBC in court over terminations and compensation issues—highlighting how the law protects your rights. These real-world cases show how severance, bonuses, and incentive plans are often at the heart of wrongful dismissal claims.

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FAQs About RBC Layoffs

Does RBC offer enhanced severance packages?

Yes – but those packages are often designed to minimize what RBC pays. You may be owed significantly more than what’s initially offered, especially if your severance doesn’t include bonuses, commissions, or benefits continuation.

Can RBC lay me off without notice?

Only if you’re given adequate severance pay. If you’re not properly compensated, it may be a case of wrongful dismissal, even in a restructuring.

What if I was let go just before bonus season?

You may still be entitled to a pro-rated bonus or even the full bonus, depending on the terms of your employment and how long you worked during the bonus year.

Do I have to accept the first severance offer?

No. You’re under no obligation to sign immediately – and in most cases, you shouldn’t. Expert legal review is essential to ensure you’re getting everything you’re owed.

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Additional Resources for RBC Employees

Learn more about your severance rights and how the law applies to layoffs in banking and federally regulated industries:

• Severance for federally regulated employees
• Severance pay in mass layoffs
• Severance for banking industry employees
• Understanding layoffs in Canada
• Severance rules in Ontario
• Severance rules in Alberta
• Severance rules in British Columbia

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Legal Review You Can Trust

This guide was prepared by Samfiru Tumarkin LLP – Canada’s leading employment law firm for non-unionized employees. We’ve helped over 50,000 people secure the compensation they deserve, and we’re the most positively reviewed law firm in the country, with over 2,000 five-star reviews on Google.

Our employment lawyers have represented employees at every major bank in Canada, including TD, BMO, CIBC, and Scotiabank, helping them navigate complex severance situations with confidence.

Trusted by Thousands. Respected Nationwide

With unmatched experience in severance law – and a reputation built on results, not time-consuming court battles – we’re the team Canadians rely on when their job or financial future is at stake.

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.