Government settles in Phoenix pay system class-action suit
The Government of Canada has reached a settlement to compensate non-unionized and casual federal employees who have been affected by payroll issues stemming from the troubled Phoenix pay system. This class-action suit, authorized by a Quebec judge in April 2018, aims to provide individual payments to members of the suit based on the number of eligible years they worked in impacted categories of employment.
The agreement, if approved by the Quebec Superior Court, will offer fair and equitable compensation to those who have endured moral damages as a result of the payroll errors. This settlement marks a significant step towards achieving justice for those impacted by the Phoenix pay system debacle.
The lawsuit alleged various issues, including employees being overpaid and then forced to reimburse the difference, as well as instances where individuals were not paid at all or received incorrect remuneration. The lawsuit did not cover public servants who are part of union processes for grievances but did include students, retirees, and occasional workers who are not covered under collective agreements.
According to the law firm Saraïlis Avocats, which handled the case, class members will be able to submit a claim form online or by mail. Eligible individuals may receive compensation up to a maximum amount of $350 for the 2016/2017 financial year and up to $175 for the three financial years between 2017 and 2020.
Originally launched in 2016, the Phoenix pay system has been plagued with issues, costing taxpayers nearly $4 billion. The system has consistently failed to deliver public servants’ paycheques on time or in the correct amounts, leading to widespread frustration and financial hardship for many employees.
This settlement represents a step towards rectifying the injustices faced by non-unionized and casual federal employees affected by the Phoenix pay system. The government’s agreement to compensate those impacted demonstrates a commitment to addressing the fallout from this troubled system and providing relief to those who have suffered as a result.
