If you are facing a layoff at CIBC, here is what you need to know about your rights and options under Canadian employment law.
CIBC is one of Canada’s largest financial institutions, employing thousands of people across Canada and internationally. Like other major banks, CIBC faces pressures from economic change, technological transformation, and shifting global markets — factors that can lead to restructuring and potential layoffs.
For employees, being laid off from a federally regulated employer like CIBC raises unique legal considerations. Issues such as severance pay, termination clauses, and protections under the Canada Labour Code often determine whether a package is fair — or whether you may be entitled to significantly more.
Severance Packages for CIBC Employees
If you are laid off from CIBC, you may be presented with a termination package. However, these offers often provide only the minimum statutory amounts rather than your full legal entitlements.
In Canada, severance is based on factors such as:
- Length of service
- Age
- Position held
- Availability of similar employment
Because banking is a federally regulated sector, employees may be entitled to common law severance, which can be much greater than the statutory minimum. Use our Severance Pay Calculator to estimate what you may be owed.
Recent Case Law: CIBC Termination Clause Struck Down
On September 29, 2025, the Ontario Superior Court in G. et al v. Canadian Imperial Bank of Commerce, 2025 ONSC 5218, ruled that CIBC’s termination clause was illegal under the Canada Labour Code because it defined “cause” too broadly.
The Court found that:
- CIBC’s clause attempted to allow dismissal for reasons that did not meet the statutory “just cause” standard.
- Because the clause was unlawful, it was void in its entirety.
- As a result, employees were awarded reasonable notice under common law, which was far more generous than the contractual limit.
This decision is a clear warning: many CIBC termination provisions may be unenforceable. Employees should not assume the contract they signed limits their severance rights.
Potential Issues With CIBC Layoff Notices
When reviewing CIBC layoff offers, employees should watch for:
- Insufficient notice – packages that don’t reflect your full entitlement.
- Invalid termination clauses – provisions that contract out of statutory protections, as seen in G. v. CIBC.
- Improper classification – layoffs labeled “temporary” but functioning as permanent terminations.
- Unfair pressure tactics – deadlines to sign packages without time for legal advice.
Wrongful Dismissal and CIBC Layoffs
You may have a claim for wrongful dismissal if:
- You were not given proper notice or severance pay.
- You were pressured to accept an unfair settlement.
- The layoff was discriminatory or retaliatory.
Because CIBC is federally regulated, non-unionized employees also have access to the Unjust Dismissal process under the Canada Labour Code, which provides another route for challenging unfair terminations.
Legal Takeaways for CIBC Employees
1. Review severance packages carefully
Termination packages offered by CIBC may look final, but they often fall short of what courts would award. Always have your severance package reviewed by an employment lawyer before signing.
2. Canada Labour Code protections apply
As a federally regulated employer, CIBC must meet the higher standard of “just cause.” Employees can also challenge terminations through the unjust dismissal process under the Canada Labour Code.
3. Termination clauses may be invalid
Recent case law, including G. v. CIBC (2025 ONSC 5218), shows that many termination provisions in CIBC contracts may not hold up in court.
4. Human rights still apply
Layoffs must not discriminate based on age, gender, race, disability, or other protected grounds under the Canadian Human Rights Act. If a layoff disproportionately affects a protected group, employees may have grounds for a human rights complaint and could be entitled to additional compensation.
How Monkhouse Law Can Help
At Monkhouse Law Employment Lawyers, we have extensive experience representing employees in the banking sector. We challenge wrongful terminations and work to secure the fair severance our clients are entitled to.
We can:
- Provide a free 30-minute phone consultation to assess your severance package.
- Assess whether your termination clause is valid.
- File wrongful dismissal or unjust dismissal claims when appropriate.
- Negotiate for improved severance on your behalf.
Contact Us
If you have been laid off from CIBC or offered a termination package, do not sign anything before speaking with an employment lawyer. Contact Monkhouse Law Employment Lawyers in Toronto for a free 30 minute phone consultation and ensure you receive the compensation you deserve.