Scotiabank layoffs: what Ontario employees need to know

Scotiabank has begun cutting roles across its Canadian banking division as part of a restructuring push. Internal communications reported by Bloomberg and other outlets describe a multi-week “transformation” that is eliminating positions while refocusing on priority lines of business. The bank previously announced a 3% global reduction in 2023.

Below is a plain-English guide for impacted employees in Ontario—tailored by Vanguard Law. It explains which law applies, what minimums you’re owed, how mass terminations work, and your options to challenge an unfair dismissal.

First things first: which law applies?

Most Scotiabank employees are part of a federally regulated industry (banking). That means your minimum employment standards come from the Canada Labour Code (CLC), not Ontario’s Employment Standards Act.

Your minimum entitlements under the Canada Labour Code

1) Individual notice (or pay in lieu)

As of February 1, 2024, the CLC uses a graduated notice scale. If you’re let go without cause, your employer must give written notice, pay in lieu, or a mix of both for at least:

• 2 weeks after 3 months of service

• 3 weeks after 3 years

• 4 weeks after 4 years

• 5 weeks after 5 years

• 6 weeks after 6 years

• 7 weeks after 7 years

• 8 weeks after 8+ years
  The Code also requires a written statement of benefits with your vacation, wages, severance and other entitlements at termination.

2) Federal severance pay (separate from notice)

If you’ve completed 12+ months of continuous employment, you’re owed the greater of:

• 2 days’ wages per completed year of service, or

• 5 days’ wages.
  This is in addition to the notice/pay-in-lieu above.

Important: These are statutory minimums. Many employees—especially longer-service, specialized, or managerial staff—may be entitled to significantly more under common law reasonable notice unless you’ve signed a valid contract that clearly limits it. Ask us to review your agreement and plan terms.

Are these “mass layoffs”? (Group termination rules)

If 50+ employees are terminated at the same industrial establishment within a 4-week period, the employer must file a 16-week group termination notice with the federal government and share/post it for affected staff. This duty is on top of the individual notice/pay-in-lieu you’re personally owed. Employers typically use Form ESDC-LAB1197 for the filing and posting requirements.

Myth-buster: The 16-week group notice is not an automatic 16-week payout to each person. It’s a government-notice and planning obligation; your individual notice still follows the graduated schedule above.

Can I challenge the dismissal as “unjust”?

If you’re non-union, non-managerial and have 12+ months of service, the CLC’s unjust dismissal regime lets you contest a termination that isn’t for just cause, unless it’s a genuine lack of work/discontinuance of a function. Deadline: 90 days from the dismissal to file a complaint—remedies can include reinstatement and back pay.

The Supreme Court of Canada has confirmed the breadth of these protections for federally regulated workers (the Wilson v. AECL decision).

What should Scotiabank employees do right now?

1. Don’t sign anything yet. Release agreements are final—get legal advice first so you don’t give up claims to bonus, RSUs/PSUs, ESPP, benefits continuation, or common-law notice.

2. Collect your documents. Offer letter/contract, compensation plan texts, recent bonus letters, equity award agreements, benefits booklet, and the termination package.

3. Check the math. Verify notice amounts, severance pay (CLC minimums), vacation and stat holiday pay, and benefit continuation during the notice period.

4. Watch the 90-day unjust-dismissal clock. If you may challenge the termination, speak to a lawyer ASAP so you don’t miss the CLC deadline.

5. ROE & EI. Ensure your Record of Employment is issued promptly so you can apply for Employment Insurance without delay (Service Canada).

6. Non-compete / non-solicit. Ontario bans most non-competes in provincial workplaces; banks are federally regulated, but contract law still applies. Even where a non-compete is in play, it may be unenforceable; non-solicit clauses are more common and context-dependent. Get tailored advice.

FAQs we’re hearing

How many jobs are affected?
Public reporting confirms cuts across Scotiabank’s Canadian banking division this fall, but the bank hasn’t disclosed totals. Earlier, Scotiabank announced a 3% global reduction in 2023.

I was told my role is redundant. Is that “cause”?
No. Redundancy/role elimination is generally without cause—you should receive statutory minimums at least, plus your potential common-law entitlements.

Do bonuses/RSUs count?
Often yes—depending on plan wording and how courts read it. Many “active employment” clauses don’t bar recovery during the reasonable-notice period. Bring us your plan texts and award letters.

Can I choose between an unjust-dismissal complaint and a court claim?
You generally can’t pursue both for the same facts. Strategy matters; talk to us about the pros/cons before you decide.

How Vanguard Law can help

We advise Ontario-based employees in federally regulated workplaces (including banking). If you received a package from Scotiabank:

• We’ll audit your entitlements (CLC minimums + common law)

• Pressure-test bonus/equity treatment

• Negotiate a stronger package—or, where appropriate, pursue an unjust-dismissal remedy

This post is information only and not legal advice. Facts matter—please contact us to get advice for your situation.