Government Settlement of Phoenix Class-Action Lawsuit in Ottawa

The government has reached a settlement in a class-action lawsuit filed by non-unionized and casual public servants affected by the Phoenix pay system fiasco. The lawsuit sought compensation for the hardships endured by government employees during the troubled rollout of Phoenix, alleging that the federal government failed to meet its obligations to these workers during that time.

According to Christian Saraïlis, a lawyer representing the plaintiffs, “The Phoenix pay system caused major issues for thousands of federal employees. The Government of Canada was a tough opponent in this case. However, the negotiations have resulted in a fair and equitable settlement for class members to compensate for the moral damages they endured.”

Ezmie Bouchard, the lead plaintiff in the lawsuit, claimed she had experienced pay errors amounting to $4,800 at Passport Canada in 2016. The lawsuit also highlighted overpayments that resulted in Bouchard having to repay $1,000 to the government.

The settlement will cover casual employees, student staff, term employees, part-time employees, and employees appointed by the Governor in Council who experienced pay problems caused by Phoenix between February 2016 and March 2020. Each member’s payout will be based on the number of eligible years worked in the affected categories, with eligible public servants able to claim up to $875 depending on their work tenure during the specified period.

While the total amount of the settlement is pending judicial approval, the Treasury Board emphasized its commitment to ensuring that government employees are paid accurately and promptly. The settlement also does not extend to unionized and permanent employees affected by Phoenix issues.

In efforts to address ongoing challenges with the Phoenix pay system, the government has allocated significant resources towards testing Dayforce as a potential replacement. A report from February 2024 deemed Dayforce a “viable option” for the next HR and pay system, with plans for potential rollout by March 2026.

As the government continues to navigate pay system challenges, the settlement marks a step towards addressing the grievances faced by non-unionized and casual public servants affected by the Phoenix pay system debacle.