Over half of the federal government’s 290,000 employees have experienced pay problems due to the system that is still causing issues that have led to public sector employee unions threatening further lawsuits.
As of April 24, about 184,000 pay-related transactions have been delayed for over a year, with a total of 349,000 transactions in the queue for processing.
Under the settlement agreement, eligible individuals who worked for the federal government as non-unionized or casual federal employees may receive a maximum of $350 for the 2016–17 fiscal year and $175 for each of the 2017–18, 2018–19 and 2019–20 fiscal years.
Unionized federal employees were excluded from the class action as they were compensated through agreements between their unions and the federal government.
The Quebec Superior Court approved the agreement on April 15, finding that it was in the best interests of the class.
The court observed that the method used to establish compensation for the class members was essentially the same as the method used to establish compensation for unionized employees.
To receive compensation under the agreement, eligible individuals must file their claim no later than Oct. 24, 2025.
The judge also approved class counsel fees of $1.4 million, noting that this would amount to 20 per cent of the total claims if compensation was sought under the agreement for 25-28 per cent of the potential claims.
The Phoenix payroll system has cost the government over $3.5 billion since its launch and is expected to cost more than $2.2 billion in additional unplanned expenditures until it is replaced.
If you have any information, story ideas, or news tips for Law360 Canada on business-related law and litigation, including class actions, please contact Karunjit Singh at karunjit.singh@lexisnexis.ca or 905-415-5859.