Damages: Compensation for eligible employees impacted by the Phoenix pay system (represented by the Public Service Alliance of Canada) — 2020 Agreement 

The Government of Canada signed a separate damages agreement in June 2019, for federal employees represented by other public service unions.

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The Government of Canada and the Public Service Alliance of Canada (PSAC) reached a joint agreement to compensate current and former employees who may have been impacted by the Phoenix pay system.

Separate agencies that use the Phoenix pay system have reached similar agreements with PSAC as well. This means that the 2020 agreement applies to current and former employees, and the estates of deceased employees represented by PSAC from separate agencies.

Who this agreement applies to

This agreement, and similar agreements, co-developed by PSAC and the federal government, apply to current and former employees and the estates of deceased employees who were:

  • represented by PSAC or in excluded positions that fall under PSAC
  • employed by separate agencies that use the Phoenix pay system

Excluded positions are defined under the Directive on Terms and Conditions of Employment for Certain Excluded and Unrepresented Groups and Levels.

Who this agreement does not apply to

This agreement does not apply 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
    • employees with terms of less than 3 months
    • individuals working no more than 1/3 of regular hours

Overview of the agreement

This agreement provides compensation for four (4) fiscal years:

  • 2016–2017
  • 2017–2018
  • 2018–2019
  • 2019–2020

General damages

General damages include compensation for stress, aggravation, pain and suffering and for the late implementation of the 2014 collective agreements. This compensation is a lump-sum payment of:

  • up to $1,000 for fiscal year 2016 to 2017
  • up to $500 for each of the following three fiscal years

To qualify for the lump-sum payment, an employee had to be:

  • employed in the core public administration or in a separate agency covered by the agreement, on an indeterminate basis, or as a term for more than three months, and
  • on strengthFootnote * for at least one day during the applicable fiscal years

Current employees received their lump-sum payments as part of their regular pay in March and September 2021.

Former employees can submit a claim for the lump-sum payment.

Severe impacts

Additional compensation, evaluated on a case-by-case basis, is also available for those who experienced:

  • severe personal or financial impacts
  • financial costs and lost investment income

Documented leave taken by current and former employees because of an illness caused by Phoenix pay problems may also be re-credited or reimbursed (as applicable). A threshold of $1,500 applies to most types of severe impacts claims and is applied only once. This means that you can combine several types of severe impacts into one claim to ensure the one-time threshold is met.

Claims are available to all current and former employees eligible under this agreement and are processed on a case-by-case basis.

Other claims and compensation

All employees can continue to submit claims for expenses and financial losses, including: 

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