New claims process for severe personal or financial impacts due to Phoenix

January 19, 2021 - Defence Stories

A new claims process has been launched to compensate eligible current and former employees who have experienced severe personal or financial impacts as a result of issues with the Phoenix pay system. This latest claims process is another element of the 2019 Phoenix Damages Agreement.

Claims for severe personal or financial impacts could include financial losses, mental anguish or other impacts attributed to Phoenix pay issues. Employees who took sick leave or other types of paid or unpaid leave because of an illness stemming from pay issues may also be eligible to apply for compensation through this new process.

This new claims process is in addition to existing claims processes for expenses, financial costs and lost investment income, as well as general compensation for former employees, which continue to be available.

To learn more about this new claims process, including how to submit a claim and required documentation, please visit the Claims for losses and damages related to Phoenix – Compensation for severe impacts pages on Please note that processing times may be longer given the complex nature of these types of claims.

Important Note:

The new claims process for severe personal or financial impacts does not apply to current or former employees covered under the recently signed damages agreement with the Public Service Alliance of Canada (PSAC) in October 2020. Discussions are underway with PSAC to finalize claims processes under this separate agreement and more information, including when employees can expect to receive lump sum payments through their regular pay, will be shared in the coming months. However, existing claims processes for out of pocket expenses, reimbursement for tax advisory services, and impacts on income tax or government benefits are available for all employees, including PSAC members.

The Government of Canada continues to take action on all fronts to resolve pay issues. I will continue to keep you informed of new or updated information related to Phoenix damages compensation as it becomes available. I also invite you to visit the Claims and Compensation: Phoenix pay system pages on or contact your human resources or union representative if you have any questions.

Thank you.

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