Canada Reimbursing Workers Impacted by Phoenix Pay System

The Canadian government has agreed to compensate federal workers who were impacted by issues related to the Phoenix Pay System.

According to the CBC, tens of thousands of government workers experienced issues with their pay due to problems with the Phoenix Pay System, the payroll program for the Government of Canada. The problems, ultimately affecting hundreds of thousands of the federal government’s workforce, included workers left unpaid for long periods of time, paid less than expected, or overpaid.

The Phoenix Pay System was reportedly an IBM customized payroll program implemented Feb. 24, 2016. From its inception, says the CBC, workers experienced problems that not only affected employees, but also their families and dependents. Additionally, the lack of payment, overpayment, then payment in a lump sum affected Canadian federal workers’ taxes.

After years of issues workers may now see some compensation as a part of the Phoenix Damages-Agreement.

“Our public servants deserve to be paid properly for their important work,” stated the President of the Treasury Board. “We are determined to provide fair compensation to employees and former employees who suffered severe financial losses because of issues resulting from the Phoenix pay system.”

According to Cision, the Phoenix Pay System agreement will compensate current and former employees, as well as the estates of deceased employees, for fiscal years 2016 through 2020. Canadian government employees will be eligible for general compensation and compensation related to severe impacts.

Canadian government workers are eligible to submit a claim in the Phoenix Pay System Damages Agreement if they meet all of the following criteria:

• Employees who, because of late pay, cashed in any public investment instrument, such as an RRSP or retirement account, experiences a severance or pension pay delay, or had to pay interest on a loan because of late pay.
• The loss was greater than $1,500
• The employee is or was eligible for severe damages under the Phoenix damages agreement

Claims in the Phoenix Pay System Damages Agreement will vary depending on each worker’s claim and the claims administrator can help claimants determine their claim. As a baseline, the loss must have been greater than $1,500. Employees will need to provide support for claims of severe impact and demonstrable cases of loss.

In addition to cash claims, current employees will receive additional annual leave totaling up to five days. Former employees will receive an equivalent salary basis for those days of leave.

The Phoenix pay system damages agreement does not apply to all Government of Canada employees. Instead, certain bargaining agents representing different units of the government have entered into the agreement. More information on eligibility is available on the Government of Canada’s website.

Further, the damages agreement does not apply to those participating in a Phoenix Pay System class action lawsuit.

Will you submit a claim in the Phoenix Pay System Damages Agreement? Why or why not? Tell us your story in the comments below.

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