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Government transitions to new payment system, phasing out Phoenix system

Troublesome Phoenix pay system winds down, with federal government implementing new Dayforce system for HR and payroll duties.

The federal government is progressing with the replacement of the problematic Phoenix pay system,...
The federal government is progressing with the replacement of the problematic Phoenix pay system, transitioning to the new Dayforce system for human resources and wage distribution duties.

Government transitions to new payment system, phasing out Phoenix system

Liven up the stale, distress-ridden Phoenix pay system days, eh? That's right, the federal government is shifting gears, proclaiming their intentions to implement the snazzy Dayforce system for human resources and payroll tasks.

Joël Lightbound, Public Works and Procurement Minister, dropped the news on Wednesday, stating they're diving headfirst into the "final build and testing phase" of the Dayforce HR and remuneration solution. And according to Lightbound, this move signals a commitment towards modernizing the HR and pay system in a respectable and transparent fashion.

In his statement, he stressed, "We're investing in the future of HR and pay, and by taking this step, we're making an important stride forward in ensuring a proficient, secure, and enduring solution for public service employees."

Dayforce, our government assures us, is a globally recognized human capital management technology juggernaut. This single AI-powered platform will cater to HR, pay, time, talent, and analytics, replacing a hefty chunk of HR systems currently in operation across all departments.

Over the following two years, the Dayforce deployment will gradually onboard, with the process starting off with two departments and an independent agency. Fortunately, the transformation will be staged, minimizing the risks associated with such a massive overhaul while ensuring a hassle-free transition for employees.

You ask about the Phoenix debacle? Launched in 2016, the system has been a real pain in the derrière for the federal administration. Since its inception, countless public servants have been affected by incorrect payouts. The government has spent an astounding $3.5 billion on the Phoenix pay system since 2017 alone.

Notably, back in 2018, the government had announced plans to replace Phoenix, investing over $150 million to find a suitable replacement. In 2019 and 2020, the Government of Canada ironed out a deal with public service unions to compensate worker bees who received pay cuts as a result of the Phoenix system.

In April this year, a class-action settlement to award compensation to non-unionized and casual federal public servants affected by Phoenix system errors received the green light from the Superior Court of Quebec.

[1] https://www.canada.ca/en/public-works-government-services/news/2021/09/government-of-canada-moves-forward-to-final-build-and-testing-phase-of-dayforce-hr-and-pay-modernization.html[2] https://www.theglobeandmail.com/politics/article-canada-to-start-testing-new-pay-system-by-year-end-as-phoenix-woes-persist/[3] https://www.ctvnews.ca/politics/new-pay-system-takes-center-stage-in-federal-budget-2021-1.5369831

Technology will be utilized extensively in the transition and operation of the Dayforce system, a globally recognized human capital management technology. The implementation of this AI-powered platform will modernize the HR and pay system, addressing the issues and inefficiencies present in the outdated Phoenix pay system.

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