Quebec court approves Ottawa’s Phoenix payroll system settlement

Workers can claim hundreds of dollars in payment until Oct. 24, 2025

Quebec court approves Ottawa’s Phoenix payroll system settlement

The Superior Court of Quebec has approved the federal government's settlement to compensate non-unionised and casual federal employees affected by the issues of the Phoenix pay system.

On April 3, 2018, the Superior Court authorised a class action in connection with the implementation of the Phoenix pay system, which was put in place by the federal government in 2016.

The court "acknowledges the commitment of the class's counsel to reimburse the Fonds d'aide aux actions collectives in the amount of $37,845.98 within 90 days of the amended judgment, and orders them to comply," according to the Superior Court.

For each worker, the amount of compensation is based on eligibility for each fiscal year as follows:

  • A maximum amount of $350.00 for the 2016–17 fiscal year (February 24, 2016, to March 31, 2017)
  • A maximum amount of $175.00 for the 2017–18 fiscal year (April 1, 2017, to March 31, 2018)
  • A maximum amount of $175.00 for the 2018–19 fiscal year (April 1, 2018, to March 31, 2019)
  • A maximum amount of $175.00 for fiscal year 2019–20 (April 1, 2019, to March 31, 2020)

After nearly a decade of legal wrangling, the federal government reached an out-of-court settlement to compensate workers affected by the issues of the Phoenix pay system in late 2024. 

“Without any admission of liability on the part of the Attorney General of Canada (AGC), the parties negotiated and accepted a national settlement agreement (the Agreement) after their counsel had thoroughly evaluated the facts of this case, having taken into account a variety of factors such as the burden and costs of litigation as well as the risk and uncertainty associated with the litigation,” said the Treasury Board of Canada Secretariat.

How can workers submit a claim?

To claim compensation, a member must complete an application online or by mail no later than Oct. 24, 2025.

“Claim applications will not be accepted after October 24, 2025, 11:59 p.m. PT,” according to the federal government.

Workers can submit their online claim right here. Workers can also download, print and complete the claim form, then mail to:

Treasury Board of Canada Secretariat
            Attention: TBS Claims Office
            90 Elgin St     
            Ottawa ON K1A 0R5

Workers who are unable to submit a claim via the online portal, or who need to submit a claim with supporting documents, can also send it to the same address.

“Do not send original documents, as they cannot be returned to the sender,” said the federal government. “Certified copies, copies of a document that have been stamped by a Notary Public, are acceptable. Please note that a Member or their representative will not be reimbursed for costs incurred for having a document certified.”

By early 2025, the federal government has Increased capacity and efficiency of the Pay Centre to provide a better HR and pay solution for public servants. Public Services and Procurement Canada (PSPC) had updated the Compensation Sector Pay, automating benefits enrollment for new hires.

Ottawa released the first update on the HR and pay system upgrades in July 2024.