Canadians can now claim up to $875 in the Phoenix class action settlement — Here's how

If you were caught in the mess of the Phoenix pay system fiasco, you might want to listen up. A class action lawsuit in Canada just got a big update that could mean real money back in your pocket.

The Phoenix class action settlement, officially approved by Quebec's Superior Court on April 15, is finally moving forward — and eligible public servants across the country can now submit claims for compensation.

The class action settlement applies to people who worked for the federal government between 2016 and 2020 — casual employees, students, part-timers and more. According to the Treasury Board of Canada Secretariat (TBS), anyone who had a pay problem because of Phoenix during that time and isn't already covered by another agreement could qualify for cash payouts.

The Phoenix pay system, introduced in 2016, was supposed to modernize payroll for Canada's public servants. Instead, it turned into a nightmare of missing cheques, underpayments and overpayments.

After years of frustration, thousands of non-unionized employees — think casual workers, students and part-time or short-term contract employees — finally saw their chance for justice through the Bouchard class action lawsuit in Canada.

The settlement approved last week offers up to $875 for employees affected by the Phoenix pay system fiasco — a max of $350 for the first fiscal year (2016–17) and $175 for each of the next three years, depending on eligibility.

It's not meant to cover full financial losses — those were handled separately — but it recognizes the "non-pecuniary damages" like stress, frustration and lost time caused by Phoenix's many glitches.

If you think you might be eligible, you'll need to file a claim — you won't just be paid automatically.

The claims window officially opened on Thursday and runs for six months, until October 24. Claims can be submitted online or by mailing a form to the Treasury Board of Canada Secretariat. If you mail it, make sure it's postmarked by the deadline to count.

The settlement covers anyone who worked at least one day for a listed federal department or agency during the eligible years and had a Phoenix-related pay problem. It doesn't matter where you lived in Canada — the settlement is national. But some groups are excluded, like RCMP members and employees who were covered under union grievance processes.

TBS notes that if you've already received a Phoenix damages payment under a different agreement — like the big settlements negotiated by unions in 2019 and 2020 — you might not be able to double-dip for the same year. Also, if you live in Quebec, there's a 2% deduction from your compensation due to local class action rules.

Importantly, the government isn't admitting to any wrongdoing here. As the TBS puts it, compensation will be awarded "without admission of liability on the part of the defendant, the Attorney General of Canada." So if you're hoping this payout is a sign that Ottawa's fessing up to the full Phoenix disaster, well, don't hold your breath.

Still, the court found the deal reasonable and fair, despite some concerns raised during the approval hearing. One objector argued that non-unionized employees were getting a rawer deal than unionized ones. But after digging into the numbers, the judge ruled the settlement was in the best interest of class members, especially given the risks and delays of continuing to fight it out in court.

The bottom line? If you're a current or former public servant and you had a Phoenix pay problem, this could be your chance to finally get a little bit of what you're owed. Just don't forget to submit your claim before October 24 — and maybe cross your fingers that the processing doesn't get tangled up in another federal computer system fail.

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