Government of Canada launches new claims process to compensate employees for severe personal or financial impacts due to Phoenix pay system 

News release

January 14, 2021 – Ottawa, Ontario – Treasury Board of Canada Secretariat

The Government of Canada has launched a new claims process to compensate current and former employees who have experienced severe personal or financial impacts as a result of issues with the Phoenix pay system.

This claims process is another element of the damages agreement co-developed with federal public service unions in June 2019 to compensate approximately 121,000 current and 25,000 former employees for damages caused by the Phoenix pay system.

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 claims process.

Existing claims processes for expenses, financial costs and lost investment income, as well as general compensation for former employees continue to be available.

This claims process does not apply to current and former employees covered by the damages agreement, signed in October 2020, between the Treasury Board of Canada Secretariat (TBS) and the Public Service Alliance of Canada (PSAC). TBS continues to work in collaboration with PSAC to finalize the claims processes from this agreement and more information will be shared in the coming months. 


“We recognize that the Phoenix pay system has had an impact, directly or indirectly, on public servants, and the Government of Canada continues to take action on all fronts to resolve pay issues. The new claims process being launched today is another important step in ensuring public servants are fairly compensated for the mental and emotional stress or financial losses they have experienced as a result of the pay system.”

- The Honourable Jean-Yves Duclos, President of the Treasury Board 

Quick facts

  • The 2019 damages agreement provides compensation to employees, former employees and the estates of deceased employees, who incurred damages between April 1, 2016 and March 31, 2020 as a result of Phoenix pay issues.

  • The agreement applies to employees whose bargaining agents have signed the agreement, unrepresented employees, executives and those employees who are in a position that is excluded from the bargaining agent that has signed the agreement.

  • The agreement does not apply to members covered by the PSAC damages agreement or to members of the class action as certified in Bouchard c. Procureur Général du Canada (200-06-000214-174) and any other member of the class that could be added by the courts, including students, casual employees, workers working no more than one third of regular hours, and employees with terms of less than three months.

Associated links


Karl W. Sasseville
Director of Communications and Issues Management
Office of the President of the Treasury Board

Media Relations
Treasury Board of Canada Secretariat
Telephone: 613-369-9400
Toll-free: 1-855-TBS-9-SCT (1-855-827-9728)
TTY (telecommunications device for the hearing impaired): 613-369-9371

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