Phoenix Pay Class-Action Settlement for Casual Federal Public Servants
A settlement has been reached in a class-action lawsuit for non-unionized and casual federal public servants affected by payroll issues related to the Phoenix pay system. If approved by the Quebec Superior Court, affected employees from February 2016 to March 2020 could receive up to $850 in compensation.
The categories of employees included in this settlement are casual employees, student staff, term employees of less than three months, part-time workers, and employees appointed by the Governor in Council (GIC). This lawsuit, filed by Sarailis Avocats in 2017, aims to provide compensation for those affected by the Phoenix pay system debacle that has plagued the public service in recent years.
The Phoenix system, implemented in 2016 to replace outdated pay systems, has resulted in significant errors and costly disruptions across the public service. To date, the federal government has spent $3.5 billion to address these issues, with ongoing efforts to resolve errors and complex cases.
Attorney Christian Sarailis commented, “The Phoenix pay system caused major issues for thousands of federal employees. The Government of Canada was a tough opponent in this case. However, negotiations have led to a fair and equitable settlement for class members to compensate for the moral damages they endured.”
Affected employees will be able to submit a claim online or by mail once the settlement is approved. The maximum compensation for the fiscal year 2016-2017 is $350, while the amount for 2017-2018, 2018-2019, and 2019-2020 is $175. Additionally, the Government of Canada and public service unions reached an agreement in 2019 and 2020 to compensate unionized employees impacted by the Phoenix system.
Unions have requested further compensation for workers citing stress and suffering due to pay system issues. The Treasury Board of Canada Secretariat stated, “The settlement provides for individual payments to class members based on the number of eligible fiscal years in which they worked.”
The Government of Canada remains committed to ensuring that all employees are paid correctly and will continue working to address pay issues stemming from the Phoenix pay system.
