small claims court and employment lawsuits
05Jan

A Major Change for Workers Seeking Justice

If you’ve been wrongfully dismissed, denied severance pay, or are owed unpaid wages or bonuses, pursuing legal action in Ontario just got easier.

As of October 1, 2025, the Small Claims Court of Ontario can now hear cases worth up to $50,000, up from the previous $35,000 limit.

This change, introduced under Ontario Regulation 42/25, significantly expands access to a faster, simpler, and more cost-effective forum for employment disputes.

For many employees, this means you can now pursue the full value of your claim without the complexity and expense of a full Superior Court lawsuit.

More Access to Justice for Employees

The Small Claims Court exists to resolve disputes more quickly and affordably than the Superior Court of Justice.

With the new $50,000 cap, many more employment-related claims now qualify, including:

Example:
If you are owed $45,000 in unpaid bonuses or severance pay, you can now file in Small Claims Court, a much faster and less expensive option than Superior Court.

Faster Timelines and Lower Costs

Compared to a traditional lawsuit, Small Claims Court offers a streamlined legal process, which often means:

  • Simpler forms and filing requirements
  • Limited pre-trial procedures
  • Shorter wait times for hearings and trial dates
  • Reduced legal fees and lower cost exposure if you lose

For employees, this means quicker access to justice and a better chance of recovering what you’re owed without prohibitive legal costs.

Christopher Achkar - Employment Lawyer

As Christopher Achkar, employment lawyer and founder of Achkar Law, explains:

“When workers stand up for their rights, they not only secure justice for themselves but help strengthen protections for everyone in the workplace. If you believe your rights have been violated, speaking with an employment lawyer can be the first step toward real accountability.” 

Stronger Leverage in Settlement Negotiations

The expanded Small Claims Court limit also shifts the balance of power in settlement discussions.

Employers know that lawsuits in this forum are:

  • Faster to file
  • Less expensive for employees to pursue
  • Harder to ignore or delay

This increased pressure often leads to earlier settlements and better offers, especially in wrongful dismissal or unpaid wage disputes.

Realistic Recovery for Mid-Sized Claims

Many workers hesitate to pursue claims worth more than $35,000 but less than $75,000 because Superior Court litigation can be costly and complex.

By raising the cap to $50,000, Ontario has made it far more realistic for employees to recover meaningful compensation, even if their claims fall into this “middle ground.”

For many, this will make the difference between writing off what they’re owed and taking effective legal action.

What Employees Should Know Before Filing

If you believe you have a claim against your employer, here’s what to keep in mind:

  • Time limits apply. Most claims must be filed within two years of the termination or breach.
  • Ministry of Labour vs. Court: Claims for unpaid wages under $35,000 may be pursued through the Ministry of Labour, but you cannot file in both places for the same issue.

Legal advice is crucial. Even in Small Claims Court, the strength of your evidence and legal arguments matters. A lawyer can help you calculate the full value of your claim, including termination pay, severance, and common law damages.

Final Thoughts

Raising Ontario’s Small Claims Court limit to $50,000 is more than a procedural change, it’s a major boost to access to justice for employees. If you’ve been dismissed unfairly or denied your entitlements, you now have a faster, more affordable path to recovery.

The sooner you act, the stronger your position will be. Don’t leave money on the table, get legal advice and pursue the compensation you deserve.

Take Action: Recover What You’re Owed

The increase to $50,000 in Ontario’s Small Claims Court is a significant step forward for workplace justice. Whether you’re seeking termination pay, unpaid wages, or severance compensation, this simpler and more affordable legal pathway could make pursuing your claim possible, and successful.

At Achkar Law, we help employees across Ontario:

  • Assess the value of their claims
  • File wrongful dismissal and severance lawsuits in Small Claims Court
  • Negotiate strong settlements
  • Represent them through hearings and trial

Contact Achkar Law

At Achkar Law, we help employees across Ontario:

  • Assess the value of their claims
  • File wrongful dismissal and severance lawsuits in Small Claims Court
  • Negotiate strong settlements
  • Represent them through hearings and trial
employment law firm toronto - Achkar Law

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. ©