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Ontario Small Claims Court Now Covers Up to $50,000: What This Means for Employees Pursuing Employment Claims
As of October 1, 2025, Ontario's Small Claims Court can hear disputes worth up to $50,000 up from the previous limit of $35,000. This change, introduced under Ontario Regulation 42/25, significantly expands access to a faster and more affordable forum for employees pursuing employment claims. For many workers whose wrongful dismissal, severance, or unpaid wage claims fall in the range of $35,000 to $50,000, this change transforms what was an expensive Superior Court process into a manageable, cost-effective option.
This means employees with wrongful dismissal claims, unpaid wage claims, severance disputes, and other employment-related monetary claims up to $50,000 can now access a simpler process with lower costs and shorter timelines. The two-year limitation period for most employment claims still applies regardless of which court they are filed in.
Do you have an employment claim in Ontario worth up to $50,000?
The expanded Small Claims Court limit means a faster, less expensive path to recovery for many employees. The two-year limitation period still applies get advice on your options before the window narrows.
Call: 1-800-771-7882 Speak With an Employment LawyerKey facts about the expanded Small Claims Court limit
Which employment claims can now be filed in Small Claims Court
Why this matters for employees
Faster access to a hearing
Small Claims Court offers significantly shorter timelines than a Superior Court lawsuit. Simpler filing requirements and limited pre-trial procedures mean cases move faster which matters when you are waiting for money you are owed after a termination.
Lower legal costs
Pursuing a claim in Small Claims Court is substantially less expensive than Superior Court litigation. Lower filing fees, simplified procedures, and limited disclosure processes reduce the overall cost of pursuing your claim making it realistic to take action even where you might have previously written off the amount as not worth the legal expense.
Better leverage in settlement negotiations
Employers know that Small Claims Court claims are faster and less expensive for employees to pursue. A credible Small Claims Court filing creates meaningful pressure that often leads to earlier and better settlement offers particularly in wrongful dismissal and unpaid wage disputes where the employer's exposure is clear and documented.
Realistic recovery for mid-sized claims
Many employees with claims in the $35,000 to $50,000 range previously faced a difficult choice pursue a costly Superior Court process or walk away. The new limit eliminates that gap. Claims that previously fell awkwardly between the old Small Claims limit and the cost-effective range for Superior Court can now be pursued in a proportionate forum.
Do you have an employment claim in Ontario that could now be pursued in Small Claims Court?
The expanded $50,000 limit opens a faster and more affordable path to recovery for many employees. Get advice on whether your claim qualifies and what the realistic recovery looks like before the two-year limitation period runs out.
Find Out What You Can Recover Or call us: 1-800-771-7882Frequently asked questions about Ontario's expanded Small Claims Court limit
What is the new Small Claims Court limit in Ontario?
As of October 1, 2025, Ontario's Small Claims Court can hear disputes worth up to $50,000, up from the previous $35,000 limit. This change was introduced under Ontario Regulation 42/25. Claims exceeding $50,000 must still be filed in the Superior Court of Justice. Where a claim is worth more than $50,000, a plaintiff can choose to limit their claim to $50,000 to use the Small Claims Court process but doing so permanently waives the excess.
Can I file my wrongful dismissal claim in Ontario's Small Claims Court?
Yes where the total value of your claim, including termination pay, severance, bonuses, and other entitlements, does not exceed $50,000. If your claim is worth more than $50,000, you would need to file in the Superior Court of Justice to recover the full amount. A lawyer can help you calculate the realistic value of your claim including common law reasonable notice to determine which forum is most appropriate.
How long do I have to file an employment claim in Ontario?
Most employment claims in Ontario including wrongful dismissal and unpaid wage claims are subject to a two-year limitation period from the date of the breach or termination. This limitation period applies regardless of whether the claim is filed in Small Claims Court or the Superior Court. Missing the two-year deadline generally means losing the right to pursue the claim regardless of its merit. Get legal advice promptly after a termination or dispute arises.
Can I pursue a claim through both Small Claims Court and the Ministry of Labour in Ontario?
No not for the same claim. You must choose one avenue. Claims for unpaid wages under the Employment Standards Act, 2000 can be filed with the Ministry of Labour's Employment Standards Branch, but doing so typically prevents you from also pursuing a court claim for the same amounts. Where your claim includes common law reasonable notice beyond the ESA minimum which cannot be recovered through the Employment Standards Branch Small Claims Court is typically the more comprehensive avenue.
Does the expanded Small Claims Court limit affect settlement negotiations?
Yes, meaningfully. Employers know that Small Claims Court claims are faster and less expensive for employees to pursue than Superior Court litigation. A credible Small Claims Court filing creates settlement pressure that often leads to earlier and better offers. The lower cost threshold for employees to pursue claims in this forum means the practical downside of refusing a reasonable settlement is higher for employers particularly where the claim amount and the underlying legal entitlement are both clear.
Do you have an employment claim in Ontario worth up to $50,000?
Our team advises employees across Ontario on employment disputes including wrongful dismissal, severance claims, and unpaid wage recovery. Contact us for a confidential consultation to assess your claim before the limitation period runs out.
Call us at 1-800-771-7882 or fill out the form below and we will be in touch.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©