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The Government of Canada and the Public Service Alliance of Canada (PSAC) has finalized an agreement to begin compensating federal workers impacted by the Phoenix pay system problems up to $2,500. This Phoenix pay system agreement also includes compensation for the late implementation of the 2014 collective agreements negotiated with PSAC.
The proposed Phoenix pay system settlement was first announced in early July. Eligible claimants can receive up to $2,500 for damages including underpayment, lack of payment, or overpayment.
All members of the problematic Phoenix payroll system who have been directly or indirectly impacted by financial losses or out of pocket expenses may be eligible. For those who have been significantly affected, more compensation may be possible.
On July 9, 2020, the Public Service Alliance of Canada (PSAC) came to an agreement with the federal government to award damages to 140,000 workers who have been affected by the Canadian payroll processing, Phoenix pay.
This new Phoenix pay system agreement includes an additional 43,000 current employees and 18,000 former employees as well as the estates of deceased employees.
Over the years, the Phoenix pay system has been notoriously problematic. The payroll system for Canadian public service workers has caused thousands of employees to receive inaccurate amounts in their paychecks. Phoenix pay has unsettlingly overpaid, underpaid, or not paid workers causing federal employees to struggle financially.
Canadian federal employees have allegedly faced financial struggles for months, and have lost a sense of security. The government has taken years to work on alleviating the massive number of payroll issues, leaving the employees to struggle until the Phoenix pay system improved.
More compensation could be awarded on a case by case basis. In some serious cases, federal employees racked up large debts due to missed payments because of the unreliability of the Phoenix pay system. The undependable Phoenix payroll system has caused some workers who weren’t being paid properly to default on vehicle and mortgage payments.
The Phoenix pay system settlement will provide for workers who have experienced losses of $1,500 or more.
In July, at the time of the proposed Phoenix pay settlement agreement, Treasury Board President Jean-Yves Duclos explained, “All employees represented by PSAC will receive compensation for the toll that the Phoenix pay system has had on their lives. This is a testament to our commitment to reaching fair and equitable agreements, mindful of today’s economic and fiscal context,” according to CTV News.
Claimants can potentially file for damages for accrued interest on any debts, the loss of security clearance for decreased credit ratings, or forced bankruptcy, and for disruptions of daily life due to emotional suffering.
Current and former federal employees who worked at least one day in 2016-2017 fiscal year can expect $1,000 in damages and $500 per year for the following three fiscal years in the Phoenix pay system settlement, according to Cision.
The Canadian government is working diligently to ensure that no federal worker is still out of pocket as a consequence of the Phoenix pay faults.
According to the Candian government, there are several circumstances that would entitle a federal worker to file a claim in the Phoenix pay system agreement.
- If you have experienced financial loss as a result of the Phoenix pay system since 2016, you can make a claim.
- If you have acquired out of pocket expenses, like additional interest or fees from missed payments because you weren’t paid accurately due to the faults of the Phoenix pay system, you can submit a claim.
- If your salary was in arrears and you were owed for one year and weren’t paid until the next year, financial losses from higher income taxes, or reduced benefits, you could be entitled to a claim.
- And lastly, you may submit a claim if you were overpaid by the Phoenix pay system, and government benefits were reduced as a result.
There is no current deadline listed in the Phoenix pay system settlement, however, the agreement deadline is 180 days, so claimants can roughly expect to be paid out by spring 2021. Phoenix pay system settlement damages will be paid as soon as possible, according to the Public Service Alliance of Canada. When a more specific timeline is implemented, the details will be provided.
The claims and compensation process for eligible employees represented by the PSAC under the 2020 damages agreement will be available soon. Top Class Actions will post the claim filing instructions once they become available. Click on the “Follow Article” at the top of this page to get the latest updates about the Phoenix pay system settlement by using your free Top Class Actions account. For the latest updates, keep checking ca.TopClassActions.com or sign up for our free newsletter.
Who’s Eligible
Current and former federal employees who were employed at least one day between 2016-2020 and was paid via the Phoenix pay system.
Potential Award
Up to $2,500 lump sum for irregularities in the Phoenix pay system for the four-year period of 2016-2020. Some claimants could receive more in severe cases, which will be determined on an individual basis.
Proof of Purchase
Relevant documents and receipts that support your claim including.
- Interest charges related to late or missed payments
- Financial penalty charges
- Other supporting documents such as pay stubs, letters, bank or credit card statements, etc.
Claim Form Deadline
No claim form deadline is listed.
The Phoenix pay settlement agreement has been given a timeline of 180 days to implement all pay increases and deliver retroactive pay.
Settlement Website
Find the Phoenix pay system damages agreement here.
Claims Administrator
A list of claims officers in the Phoenix pay settlement can be found here. Claims officers are assisting employees in their designated organizations.
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