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Notice regarding class action relating to the implementation of the Phoenix payroll system (Articles 579 and 590 CCP)

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Who are the members of the Bouchard class action

SUPERIOR COURT (class action)
CANADA
PROVINCE OF QUEBEC
DISTRICT OF QUEBEC
No.: 200-06-000214-174

EZMIE BOUCHARD
Plaintiff
c.
ATTORNEY GENERAL OF CANADA
Defendant

If you are a person:

  1. who was an employee of the Government of Canada, in Canada regardless of your province or territory of residence:
    1. on a casual basis, as a student, on a term basis of less than three months, on a part-time basis (not ordinarily required to work more than one third of the normal period for persons doing similar work), or as a Governor in Council (GIC) appointee, appointed under an Act of Parliament to a statutory position described in that Act.
    2. for one or more of the following departments and organizations; And
    3. for at least one day during one, or more than one of the following fiscal years: 2016-2017 (from February 24, 2016 to March 31, 2017), 2017-2018 (from April 1, 2017 to March 31, 2018), 2018-2019 (from April 1, 2018 to March 31, 2019),2019-2020 (from April 1, 2018 to March 31, 2020); and
  2. who had a pay problem.

This notice is addressed to you.

Read it carefully because the settlement of the class action could have an effect on your rights.

The class action has been authorized and an out-of-court settlement has occurred and will be subject to court approval.

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

Another class action regarding the Phoenix pay system was filed on August 2, 2018, in the Court of Queen’s Bench of Alberta in case number 1801 10956 (Renée Delorme v. Her Majesty the Queen in right of Canada and IBM Canada Limited (Delorme)) and has not yet been certified against Her Majesty the Queen in right of Canada by the Alberta court.

The status of representative of the class members was assigned to Ms. Ezmie Bouchard.

The Superior Court granted the plaintiff permission to act as representative of the following group:

“All person who have had an employment relationship with the Government of Canada at any time the Class Period, excluding those subject to the grievance procedure under Part 2 (sections 206, 208 and 209) of the Public Sector Labor Relations Act (now the Federal Public Sector Labour Relations Act, L.C. 2003, ch. 22, art. 2) (the “Class”).

All persons in the Class defined in paragraph a. who, during the Class Period, were affected by one or more errors related to their compensation or their tax records, termination records, or any other type of record related to their compensation or employment, while they had an employment relationship with the Government of Canada and/or after f their employment relationship with the Government of Canada ended (the “ First Subclass ”);

All persons in the Class defined in paragraph a. who, during the Class Period, received 50% or less of their earnings, employment insurance benefits or leave of absence pay, retirement pay or any form of remuneration in connection with their current or former employment relationship with the Government of Canada for four weeks or more (the “Second Subclass”).

The Bouchard class action was the subject of an out-of-court settlement agreement for the class members regardless of their province or territory of residence (subject to the exclusions mentioned below).

This agreement does not apply to persons locally engaged outside Canada and to members of the Royal Canadian Mounted Police who have not been paid using the Phoenix pay system nor to employees subject to the grievance procedure provided for in Part 2 of the Federal Public Sector Labour Relations Act, SC 2003, c. 22, art. 2.

The settlement agreement will be subject to approval by the Superior Court of Quebec. It must be approved by the Superior Court to become applicable and final.

The class period begins on February 24, 2016 and will end on March 31, 2020 if the Court approves the settlement agreement.

Key terms and conditions of the settlement agreement, if approved

To submit a claim for compensation, you will need to:

  • Have been employed by the Government of Canada, in Canada:
    1. on a casual basis, as a student, on a term basis of less than three months, on a part-time basis (not ordinarily required to work more than one third of the normal period for persons doing similar work), or as a Governor in Council (GIC) appointee, appointed under an Act of Parliament to a statutory position described in that Act.
    2. for one or more of the following departments and organizations; and
    3. were employed for at least one day during one, or more than one, fiscal year during which you had a pay problem:
      • 2016-2017 (from February 24, 2016 to March 31, 2017)
      • 2017-2018 (from April 1, 2017 to March 31, 2018)
      • 2018-2019 (from April 1, 2018 to March 31, 2019)
      • 2019-2020 (from April 1, 2019 to March 31, 2020)
    4. have on hand the Personal Record Identifier (PRI) or, if you do not have your PRI, other proof including your first and last name, your date of birth and the name of the department or organization for which you have work.

If you are eligible for compensation or have received compensation under the agreements regarding damages caused by the Phoenix system, you will not be entitled to of receive compensation for the corresponding fiscal year:

Class members will be able to submit a claim form via the Internet or by mail and may be entitled to the following compensation:

  • A maximum amount of $350.00 for the 2016/2017 fiscal year (February 24, 2016 to March 31, 2017)
  • A maximum amount of $175.00 for the 2017/2018 fiscal year (April 1, 2017 to March 31, 2018)
  • A maximum amount of $175.00 for the 2018/2019 fiscal year (April 1, 2018 to March 31, 2019)
  • A maximum amount of $175.00 for the 2019/2020 financial year (April 1, 2019 to March 31, 2020)

Under section 42 of the Loi sur le Fonds d’aide aux actions collectives and section 1 of the Règlement sur le pourcentage prélevé par le Fonds d’aide aux actions collectives, a deduction of 2% will be taken from the gross to be paid to any member residing in Quebec.

Compensation will be granted without admission of liability on the part of the defendant (Attorney General of Canada) and does not constitute an acknowledgment of the facts or the law. The allegations made in the class action have not been proven in a court of law and are contested by the defendant (Attorney General of Canada).

The plaintiff and her lawyers entered into a fee agreement dated April 4, 2017, under which Saraïlis Avocats would be entitled to receive 20% of the amount received in this class action, plus applicable taxes.

However, to avoid reducing the amounts paid to members, Saraïlis Avocats and the defendant (Attorney General of Canada) agreed that the fees of the plaintiff's lawyers will be paid separately by the defendant, that they be set at $1,400,000.00 and that they will not be deducted from the sums paid to members.

The fees must be approved by the Superior Court. The revision of the amount of fees by the Superior Court, if applicable, will not have the effect of canceling the settlement agreement.

The defendant (Attorney General of Canada) will receive a full and final release from all class members, except those who have chosen to opt out of the class action.

You can consult the final settlement agreement on the website of the plaintiff's lawyers or Treasury Board of Canada Secretariat website.

Class action legal costs cannot be demanded from class members.

If the settlement agreement is approved, another notice will be published to notify you of the approval and explain how to proceed with making a claim.

Opting out of the class

You can opt out of the class action, if you wish instead to pursue an individual action. If you make this election, you will lose the opportunity to be eligible for the benefits of the settlement agreement. In this case, the settlement agreement and its benefits will not apply to you, even if approved.

To do this, you must file with the Superior Court registry (district of Quebec) before February 11, 2025, the duly completed and signed exclusion form, available for printing on the Saraïlis Avocats website :

Superior Court
Civil Registry of the Superior Court of Quebec
(Quebec Courthouse)
300, boul. Jean-Lesage, room 1.24
Quebec (Quebec)
G1K 8K6

Next steps: superior court hearing and your right to participate

The settlement agreement will be presented to Judge Jean François Émond, judge of the Superior Court for approval on February 18, 2025 at 2:00 p.m., in room 3.14 at the Quebec Courthouse located at 300, boul. Jean-Lesage in Quebec, province of Quebec, G1K 8K6.

You do not need to attend the approval hearing to be eligible for compensation. If you wish to attend the approval hearing, you may attend in person at the address listed above or virtually by MS teams at:

Or by telephone at:

  • Quebec : 581-319-2194
  • Canada (tollfree) : 833-450-1741
  • Phone conference ID: 126 251 949#

You can participate in the approval hearing in the official language of your choice.

If you wish, the law allows you to assert your objections or arguments if you are a class member. In this case, the Superior Court will hear your objections or arguments regarding the settlement, if applicable, on the condition that you write to the lawyers of the plaintiff (Saraïlis Avocats) and the defendant (Attorney General of Canada) at the addresses mentioned below, no later than February 11, 2025, indicating the following:
  • Your full name, current mailing address, fax number (if applicable), telephone number and email address; the name of the department or organization for which you worked and the period you worked there, your employment status during the relevant period AND
  • A statement explaining why you believe you are a class member, specifying the reasons for this belief; AND
  • A brief statement of the nature and grounds of your objections or arguments; AND
  • Stating whether you intend to appear at the approval hearing or whether you intend to be represented by a lawyer and, if you are represented by a lawyer, the name, address, phone number telephone number, fax number and email address of the lawyer.

The contact details of the parties’ lawyers are as follows:

Plaintiff's lawyers
Sarailis Avocats Inc.
1255, boul. Lebourgneuf
Office 550
Quebec (Quebec)
G2K 0M6
phenix@sarailis.ca

Defendant's lawyers
Attorney General of Canada
Quebec Regional Office
To the attention of Christine Mance
Complexe Guy-Favreau 200, boul. René-Lévesque West
East tower, 5th floor
Montreal (Quebec)
H2Z 1X4
Fax: 514 496-7876
NotificationPGC-AGC.Civil@justice.gc.ca

Saraïlis Avocats undertakes to produce to the Superior Court any written objections or arguments received. You can also appear in court to explain the reasons for your objections or arguments, during the hearing on the approval of the settlement agreement which will take place on February 18, 2025.

This notice was approved by the Honorable Jean-François Émond, judge of the Superior Court of Quebec.

Quebec, November 13, 2024

Sarailis Avocats Inc.
Plaintiff's lawyers

Annex 1

Principal questions of law and fact to be treated collectively, and main conclusions sought, as defined in the judgment authorizing the class action:

  • Did the Government of Canada fail in its obligation to properly manage the remuneration of its employees?
  • Did the Government of Canada negligently manage the crisis generated by the failures of the Phoenix pay system?
  • Did Class Members suffer moral prejudice as a result of the failures of the Phoenix pay system, and if so, how much should this prejudice be assessed for?
  • Did the First Subclass members suffer moral prejudice as a result of the failures of the Phoenix pay system that affected their file, and if so, how much should that prejudice be assessed for?
  • Did the Second Subclass members suffer moral prejudice as a result of the failures of the Phoenix pay system that resulted in a reduction of at least 50% of their pay for a period of four weeks or more, and if so, to how much should that prejudice be assessed for?
  • Is the Federal Government liable, for the harm caused to members of the Class and the two subclasses, respectively, by the failures of the Phoenix pay system?
  • Does the Federal Government have an obligation to pay the salaries of its employees in full and on time?
  • If so, should the Court order the payment of arrears of wages and other payments owed to Government of Canada employees, with interest and additional compensation from the time of the default?
  • If so, what is the earliest established date of the default?

The main conclusions sought:

GRANT the Plaintiff’s request for class action on behalf of the following Group and the following subgroups:

  • All persons who had an employment relationship with the Government of Canada at any time (…) during the Class Period (the “Class”);
  • All individuals who are members of the Class who, (…) during the Class Period, were affected by one or more errors related to their remuneration or their tax records , termination records or any other type of record related to their remuneration or employment, while they had an employment relationship with the Government of Canada and/or after their employment relationship with the Government of Canada ended (the “First Subclass”);
  • All individuals who are members of the Class who, during the Class Period, received 50% or less of their earnings, employment insurance benefits or leave of absence pay, retirement pay or any form of remuneration in connection with their current or former employment relationship with the Government of Canada for four weeks or more (…) (the “Second Subclass”);

GRANT the Plaintiff's action on behalf of all Class members, the First subclass and the Second subclass;

ORDER the Defendant to pay the Plaintiff and each member of the Class the sum of $500, bearing interest at the legal rate and the additional compensation provided for by law from the filing of the request for authorization to bring a class action and to be representative;

ORDER the Defendant to pay the Plaintiff and each member of the First subclass the sum of $1,000, bearing interest at the legal rate and the additional compensation provided for by law from the filing of the request for authorization of exercise collective action and to be representative;

ORDER the Defendant to pay the Plaintiff and each member of the Second subclass the sum of:

  • $500 for the first four weeks where the member received 50% of their pay or less ;
  • for each additional week where the member received 50% of his pay or less, between the fifth and tenth weeks inclusive, an additional $175;
  • for each additional week where the member received 50% of his pay or less, following the tenth week, an additional $250 each;
  • all bearing interest at the legal rate and the additional compensation provided for by law from the filing of the request for authorization to take collective action and to be a representative;

ORDER the Defendant to pay to the Plaintiff and to each member of the Second subclass and, more generally, to all members of the First subclass who did not receive all the sums to which they were entitled as remuneration employment or social benefits, the amount to be determined during the recovery process and representing the salary arrears or other amount owed to each of these members, bearing interest at the legal rate and the additional compensation provided for by law from the date of residence;

ORDER the collective recovery of claims of the sums to be collected under this judgment, according to the procedure to be established by the court;

ORDER, where applicable, the liquidation of members' claims or the distribution of compensation to each of them from the sums recovered collectively;

ALLOW members of the Second subgroup to present an individual claim for their damage suffered in excess of the damage assessed jointly for the members of the Second subgroup, all, according to the terms and conditions to be set by the court;

ALL with legal costs, including expert appraisal costs, opinion costs and costs related to the administration of claims and the distribution of compensation;

Appendix A

  • List of Departments and Organizations

    Departments and organizations listed in Schedules I and IV of the Financial Administration Act that use the Phoenix pay system:

    • Accessibility Standards Canada
    • Administrative Tribunals Support Service of Canada
    • Agriculture and Agri-Food Canada
    • Atlantic Canada Opportunities Agency
    • Canada Border Services Agency
    • Canada Economic Development for Quebec Regions
    • Canada School of Public Service
    • Canadian Dairy Commission
    • Canadian Grain Commission
    • Canadian Heritage
    • Canadian Human Rights Commission
    • Canadian Intergovernmental Conference Secretariat
    • Canadian Northern Economic Development Agency
    • Canadian Radio-television and Telecommunications Commission
    • Canadian Space Agency
    • Canadian Transportation Agency
    • Civilian Review and Complaints Commission for the Royal Canadian Mounted Police
    • Copyright Board of Canada
    • Correctional Service of Canada
    • Courts Administration Service
    • Crown–Indigenous Relations and Northern Affairs Canada
    • Department of Finance Canada
    • Department of Justice Canada
    • Department of National Defence
    • Employment and Social Development Canada
    • Environment and Climate Change Canada
    • Federal Economic Development Agency for Southern Ontario
    • Fisheries and Oceans Canada
    • Global Affairs Canada
    • Health Canada
    • Immigration and Refugee Board of Canada
    • Immigration, Refugees and Citizenship Canada
    • Impact Assessment Agency of Canada
    • Indigenous Services Canada
    • Infrastructure Canada
    • Innovation, Science and Economic Development Canada
    • International Joint Commission
    • Library and Archives Canada
    • Military Grievances External Review Committee
    • Military Police Complaints Commission of Canada
    • National Farm Products Council
    • Natural Resources Canada
    • Office of the Chief Electoral Officer (Elections Canada)
    • Office of the Commissioner for Federal Judicial Affairs Canada
    • Office of the Commissioner of Lobbying of Canada
    • Office of the Commissioner of Official Languages
    • Office of the Information Commissioner of Canada
    • Office of the Privacy Commissioner of Canada
    • Office of the Public Sector Integrity Commissioner of Canada
    • Office of the Registrar of the Supreme Court of Canada
    • Office of the Secretary to the Governor General
    • Office of the Superintendent of Bankruptcy
    • Parole Board of Canada
    • Patented Medicine Prices Review Board Canada
    • Privy Council Office
    • Public Health Agency of Canada
    • Public Prosecution Service of Canada
    • Public Safety Canada
    • Public Service Commission of Canada
    • Public Services and Procurement Canada
    • Royal Canadian Mounted Police
    • Royal Canadian Mounted Police External Review Committee
    • Secretariat of the National Security and Intelligence Committee of Parliamentarians
    • Shared Services Canada
    • Statistics Canada
    • Transport Canada
    • Transportation Safety Board of Canada
    • Treasury Board of Canada Secretariat
    • Veterans Affairs Canada
    • Veterans Review and Appeal Board
    • Western Economic Diversification Canada (split into two new agencies: Pacific Economic Development Canada [PacifiCan] and Prairies Economic Development Canada [PrairiesCan])
    • Women and Gender Equality Canada

    Separate agencies listed in Schedule V of the Financial Administration Act that use the Phoenix pay system:

    • Canada Revenue Agency
    • Canadian Energy Regulator (formerly the National Energy Board)
    • Canadian Food Inspection Agency
    • Canadian High Arctic Research Station (Polar Knowledge Canada)
    • Canadian Institutes of Health Research
    • Canadian Nuclear Safety Commission
    • Canadian Security Intelligence Service
    • Communications Security Establishment
    • Financial Consumer Agency of Canada
    • Financial Transactions and Reports Analysis Centre of Canada
    • Indian Oil and Gas Canada
    • National Film Board of Canada
    • National Research Council Canada
    • Natural Sciences and Engineering Research Council of Canada
    • Northern Pipeline Agency
    • Office of the Auditor General of Canada
    • Office of the Correctional Investigator of Canada
    • Office of the Superintendent of Financial Institutions of Canada
    • Parks Canada
    • Secretariat of the National Security and Intelligence Review Agency (formerly the Security Intelligence Review Committee)
    • Social Sciences and Humanities Research Council
    • Statistical Survey Operations

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