Government demands repayment from public servants for Phoenix overpayments

Federal public servants in Canada face legal threats if they do not repay funds mistakenly overpaid by the Phoenix pay system years ago. The government is actively seeking reimbursement from employees for overpayments dating back several years.

Background on the Phoenix pay system errors

Since its launch, the Phoenix pay system has struggled with payroll mistakes, resulting in some federal workers receiving more pay than they were owed. The government is now pursuing recovery of these overpayments.

"Federal public servants are being threatened with legal action if they don’t repay money they were mistakenly overpaid during the Phoenix payroll issues."

The errors have triggered ongoing challenges, with employees caught in disputes over how much they owe and whether the government should waive repayment in certain cases.

Implications for public servants

The government’s insistence on reimbursement creates financial strain for some workers, who may face garnished wages or legal consequences if unable to repay. The issue remains a contentious labor relations matter.

The government’s pursuit of repayment for long-past Phoenix pay errors puts considerable pressure on public servants, raising concerns about fairness and financial hardship.

CBC.ca on MSN — 2025-11-28