Government settles in Phoenix pay system class-action suit

The Government of Canada has settled out of court to compensate non-unionized and casual federal employees impacted by payroll issues caused by the Phoenix pay system.

The class-action suit against the federal government was authorized by a Quebec judge in April 2018.

If approved by Quebec Superior Court, the agreement will provide individual payments to members of the suit, calculated by the number of eligible years they worked in one of the affected categories of employment, according to Quebec city law firm Saraïlis Avocats, which handled the case.

"The negotiations have resulted in a fair and equitable settlement for class members to compensate for the moral damages they endured," lawyer Christian Saraïlis said in a news release.

"This is, in our view, a compelling example of justice achieved."

The suit alleged some employees were paid too much before being forced to reimburse the difference, while others were not paid at all or did not receive the proper remuneration.

It did not include the majority of public servants who have a union process for grievances, but did include students, retirees and occasional workers who aren't covered under those collective agreements.

According to the law firm's website, class members will be able to submit a claim form via the internet or by mail. They may be entitled to compensation up to a maximum amount of $350 for the 2016/2017 financial year and a maximum amount of $175 for the three financial years between 2017 and 2020.

Lawyers had sought a base amount of $500 for all those allowed to join the lawsuit, and an additional $1,000 for those who experienced mistakes in their pay, regardless of whether they received too much money or not enough.

Launched in 2016, the Phoenix pay system — which cost taxpayers nearly $4 billion — has failed regularly to deliver public servants' paycheques on time, or in the right amounts.