Phoenix

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Phoenix

The Phoenix pay system has caused significant and ongoing pay problems for federal public service employees. CAPE continues to advocate for members affected by incorrect pay, delayed payments, overpayments and other Phoenix-related issues.

If you are experiencing a pay problem, it is important to review your pay records, report the issue to your employer and keep copies of relevant correspondence, pay stubs and supporting documentation.

Having a pay problem?

As a first step, report the issue through your department's compensation services or the Public Service Pay Centre, as applicable. Keep a record of the date you reported the problem, any case or ticket numbers, and the responses you receive.

If the issue remains unresolved and may involve a violation of your collective agreement or other workplace rights, contact CAPE for advice.

Depending on the circumstances, additional action, including a grievance, may be appropriate.

Received a Phoenix overpayment notice? Follow Steps 1 to 3.

If you receive a notice stating that you were overpaid, do not ignore it and do not automatically agree that the amount is correct.

Read the notice carefully and take the time to verify the information before responding. Pay particular attention to the deadline identified in the notice. If you don’t acknowledge the overpayment by that date, recovery will generally begin using the default repayment schedule in the notice. This can happen even if you dispute the overpayment.

Responding by the deadline does not require you to agree with the alleged overpayment. If you disagree with all or part of the amount, you can respond by disputing it, as described in Step 3 below. 

Step 1. Review the alleged overpayment

Compare the information in the notice with your own records, including:

  • the amount the employer says you owe;
     
  • the period during which the alleged overpayment occurred;
  • the reason given for the overpayment;
  • your pay stubs and other pay records for that period; and
  • any previous repayments or deductions relating to the same period.

If something does not match your records, make note of the specific discrepancy.

Step 2. Review Annex A carefully before responding.

Annex A normally provides information about the alleged overpayment or overpayments.

Do not assume that the information is correct simply because it appears in the notice. If you cannot understand how an amount was calculated, you can request additional information from the employer.

Step 3a. Review Annex B carefully before responding.

Annex B allows you to respond to the employer's overpayment notice and identify the appropriate option based on your circumstances.

Step 3b. If you disagree with the notice, contact CAPE immediately and respond to the employer notice.

If you believe the overpayment amount identified in Annex A is incorrect, has already been repaid, includes duplicate amounts, or otherwise does not reflect your records, current federal guidance directs employees to select the applicable dispute option in Annex B and provide supporting information or documentation. Be as specific as possible. Simply stating "I disagree" may not give the employer enough information to understand the basis of your dispute.

Explain the specific reason for your disagreement when responding. Identify the particular overpayment number or amount you are disputing and provide relevant supporting information.

For example, you may need to explain that:

  • you believe the amount has already been repaid;
  • the dates or amount do not match your records;
  • the employer's information does not reflect what actually occurred;
  • you require additional information to verify the alleged debt; or
  • you believe some or all of the alleged overpayment may fall outside the applicable limitation period. NOTE: This requires substantial advice from CAPE to pursue. Read more about the limitation period and if it applies to your circumstance, see the section below entitled “What about overpayments that are more than six years old?”

Examples of responses:

I am disputing overpayment number ___ because my records indicate that this amount was previously recovered on or around [date]. Please review the recovery history and provide confirmation of any amounts already collected.

Or:

I am unable to verify overpayment number ___ based on the information provided. Please provide the pay periods, payments and calculations used to determine the alleged overpayment so that I can compare them with my records.

Then, do not delay in contacting CAPE’s representation team should you disagree with an amount rather than waiting for the Pay Centre's review or overpayment dispute process to conclude. This will help identify and preserve the relevant timelines for formal recourse. Most notably, the EC and TR agreements establish a 25-day time limit for filing grievances from the date you are notified, or you first became aware of the action or circumstances giving rise to the grievance. Submitting an Annex response, requesting additional information from the employer, opening a Pay Centre ticket, or otherwise attempting to resolve the matter through the pay system should not be assumed to suspend or extend a collective agreement grievance deadline. An overpayment dispute and a grievance are not necessarily the same thing. CAPE can help determine whether the circumstances raise a collective agreement or other labour relations issue requiring separate or additional recourse.

Important: Disputing an overpayment does not generally prevent the employer from beginning recovery. Contact CAPE at representation@acep-cape.ca if you are concerned that recovery may begin while the matter remains disputed.

What if I believe the overpayment is outside the six-year limitation period?

The Crown Liability and Proceedings Act establishes a six-year limitation period that can affect the Crown's ability to recover salary overpayments.

However, whether a particular amount is outside the limitation period can depend on the specific facts, including when the overpayment occurred, whether the debt was subsequently acknowledged, and whether the employer took recovery action within the applicable period.

If you believe an alleged overpayment dates back approximately six years or more, members should not acknowledge or agree to repay the amount without first reviewing the dates and circumstances, contact CAPE at representation@acep-cape.ca before agreeing to repayment so that your particular circumstances can be reviewed.

If you need more information from the employer first, you may wish to request it in writing. For example: I am requesting additional information about overpayment number ___ in the amount of $___, which appears to date from ___. Please provide the pay periods involved, the date the overpayment was identified, and any recovery action taken to date. This request is not an acknowledgement that the amount is owing.

Whether the limitation period applies depends on your personal circumstances, so it is important to contact CAPE before responding.

What if I cannot afford the proposed repayment?

If the recovery would cause financial hardship, repayment flexibility may be available. Current federal guidance allows employees in financial hardship situations to request a recovery amount lower than the normal recovery rate in certain circumstances. Note that making this request generally requires you to acknowledge the overpayment.

Follow the instructions contained in your notice and contact your compensation services or the Public Service Pay Centre regarding the available options. If you require assistance understanding your options, contact CAPE at representation@acep-cape.ca.

What if deductions have already started?

Not every overpayment requires the employer to issue the same type of notice before recovery. Certain overpayments may be recovered from first available funds under the applicable federal pay rules.

However, if deductions have started and you believe the amount is incorrect, you did not receive information you were entitled to receive, or the recovery does not appear to follow the applicable process, contact your compensation services immediately and contact CAPE at representation@acep-cape.ca for advice.

Before contacting CAPE

To help us assess your situation efficiently, please have the following available where possible:

  • the overpayment notice;
  • Annex A and Annex B;
  • relevant pay stubs;
  • previous overpayment notices;
  • records of amounts already recovered;
  • correspondence with the Pay Centre or your departmental compensation team;
  • relevant case or ticket numbers; and
  • a brief explanation of what you believe is incorrect or what you need assistance understanding.

Providing these documents at the outset can help CAPE assess whether the issue concerns the calculation of the overpayment, the recovery process, the limitation period, a collective agreement issue or another potential recourse in a timely manner.

CAPE can help

CAPE can assist members in understanding their workplace rights and potential recourse where a Phoenix overpayment or recovery raises a labour relations issue.

Depending on the circumstances, we may be able to help you:

  • understand the employer's overpayment claim and recovery process;
  • identify information that should be requested from the employer;
  • assess whether the amount or recovery is disputed;
  • identify potential limitation-period concerns;
  • understand available repayment options;
  • determine whether a grievance or other recourse may be appropriate; and
  • address situations where the recovery process may not have been properly followed.

An overpayment dispute and a grievance are not necessarily the same thing. CAPE can help determine whether the circumstances raise a collective agreement or other labour relations issue requiring separate or additional recourse.

CAPE cannot provide personal tax or financial advice. Questions concerning the tax treatment of an overpayment should be directed to the appropriate government authority or a qualified tax professional.

In general, because federal pay procedures and policies can change, members should consult the current Government of Canada guidance when responding to an overpayment notice. If needed, reach out to CAPE at representation@acep-cape.ca.

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