Ottawa, December 9th,2025 – The Association of Justice Counsel (AJC), representing more than 3,500 federal lawyers and prosecutors, noticed that many members are receiving overpayment letters from the government demanding repayment of actual or alleged Phoenix overpayments. In some cases, these overpayments are more than six years old and are therefore statute-barred under section 32 of the Crown Liability and Proceedings Act, meaning the government cannot legally recover them. 

Despite this, the government is pursuing repayment. What's more, many of these overpayment letters omit the fact that amounts past the 6-year limitation period are not recoverable unless the employee consents to the recovery.  

 

It has been a decade since Phoenix began, and it is unacceptable for AJC members to continue to be burned by it. 

 

WHAT YOU NEED TO KNOW: 

If the overpayment is older than six years, the employer cannot legally recover it without your consent. However, most overpayment letters warn that if you do not respond by the stated deadline, the employer will treat the non-response as permission to proceed with automatic recovery from severance, pensions, or other entitlements. 

 

Therefore:  

  • It’s important that you do not sign or agree to anything related to overpayment repayment until you have reviewed the letter and details of the alleged overpayment and consulted with the AJC.  

  • Be mindful of any deadlines and respond promptly to help avoid automatic recovery. 

     

HAVE YOU RECEIVED A LETTER OR NOTICE?  

  • Carefully review any letter or deduction notice before taking action. Do not sign or agree to repayment until you've confirmed your rights.  

  • Note the date you received the alleged overpayment to confirm whether any amounts are more than six years old. If they are, the employer cannot legally recover the amounts without your consent.  

  • It's also important to verify the accuracy of the amount claimed and whether you have already repaid the amount. Duplicate letters or incorrect figures are common.  

  • Do not attend any meetings about your overpayment without a union representative.  

  • If any of the amounts are over six years old or the amounts are incorrect, we recommend you respond to the overpayment letter by choosing Option 3 and attaching a signed supporting letter explaining the reason you disagree with the validity or amount of the alleged overpayment. If the alleged overpayment is over six years old, we recommend you submit the following response asap back to the Pay Center: 

The alleged overpayment of $ XX is an amount being sought outside of the six-year limitation period provided under section 32 of the Crown Liability and Proceedings Act, as I received the overpayment letter on DAY MONTH YEAR and the overpayment listed in the letter is from  MONTH YEAR to MONTH YEAR, which is more than six-years old. As such, the Employer is statute-barred from collecting this overpayment. 

Please provide me with written confirmation that this overpayment debt has been removed from my pay file.  

  

Sincerely, 

[name] 

 

If you need further support, contact us by filling out the intake form. We can help you assess your situation, provide guidance, represent you, and assist in filing a grievance if necessary. 

 

WHY THIS MATTERS: 

  • Members are sometimes being asked to repay amounts they may not owe, or that are inaccurate or unverifiable. 

  • Many members are still owed money from prior Phoenix errors – these amounts should be reconciled before employees are approached about alleged overpayments. 

  • The employer’s practice of demanding repayment for statute-barred amounts is an attempt to pressure members into paying sums they are not legally obligated to repay. 

 

 

ABOUT THE AJC 

The Association of Justice Counsel (AJC) is the union defending Canada’s legal team. Our 3,500+ members are Federal Crown Counsel and articling students employed by the Government of Canada in the Department of Justice, the Public Prosecution Service of Canada, and in various federal agencies, tribunals and courts across Canada. 

MEDIA CONTACT 

The Communications Department 
Association of Justice Counsel 
300–2725 Queensview Drive 
Ottawa, ON, Canada 
K2B 0A1 

Phone: (613) 798-9900 
Toll-Free: (866) 218-3310 
Fax: (613) 564-0606 
Email: admin@ajc-ajj.ca 

 

 

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