15 Jul Small Claims, Big Opportunity: Ontario’s New $50,000 Limit Is a Win for Employment Mediation
On October 1, 2025, Ontario is bumping the Small Claims Court ceiling from $35,000 to $50,000 per plaintiff.
The Ministry’s stated goal is plain: free up Superior-Court dockets and make justice more accessible and affordable.
Wrongful Dismissal Claims Fit the New Sweet Spot
Most wrongful-dismissal claims for non-executive employees under 10 years’ service fall squarely between $20,000 and $45,000 once you factor reasonable-notice damages, benefits, and perhaps a dash of moral damages. That number has always been a bit too rich for Small Claims and a bit too small for a cost-effective Superior-Court action. The new $50,000 cap fixes that Goldilocks problem.
Even if you layer on vacation pay and car allowance, many cases will still stay under $50,000—especially where mitigation income trims the notice period. Bottom line: a large chunk of Ontario employment disputes just found a new home.
More Hands on Deck: Paralegals & Junior Counsel
Under the Courts of Justice Act and the Law Society of Ontario’s licensing rules, lawyers and licensed paralegals can appear in Small Claims Court. For junior associates, it’s an ideal training ground that doesn’t carry the procedural baggage (or client-management pressure) of Superior Court. I expect that this will lead to parties favouring mediator-led resolutions to contain legal spend.
Timing: Court Queue vs. Mediation Fast-Track
The difference in timelines between Small Claims litigation and mediation is significant—especially in larger centres like Toronto. Once you file and serve your claim, the court will usually schedule a mandatory settlement conference within about 90 days of the Defence being filed. If the case doesn’t settle, you’ll need to request a trial date—which may be scheduled six to eighteen months later, depending on the courthouse backlog. Realistically, it could take up to two years from start to finish.
Mediation, on the other hand, offers flexibility and speed. You can book a mediation before a claim is even issued, or at any point during the litigation process. You’re not waiting in line for court availability. Depending on the parties’ readiness and your mediator’s schedule, you could be resolving the dispute within weeks or a couple of months of dismissal.
For an employee navigating unemployment or financial uncertainty, waiting a year or more for a trial isn’t just frustrating—it can be destabilizing. Mediation puts the timing back in your hands.
Who’s Running the Show?
If you’re relying on the court process, your mandatory settlement conference will be led by a deputy judge—a part-time judge appointed to handle Small Claims matters. These are often experienced lawyers or retired judges, and many do a great job pushing parties toward settlement. But the court assigns them based on availability, not suitability for your file. You get no say in who facilitates that critical conversation.
By contrast, when you mediate privately, you choose your mediator. You can pick someone with deep employment law experience, a style that fits your case (facilitative or evaluative), and the personality to match your client and opposing counsel. That control can make all the difference—especially in emotionally charged wrongful dismissal cases, where tone and trust matter just as much as legal substance.
Costs and Caps
With the new $50,000 limit, the amount of recoverable legal fees also increases. Successful parties represented by a lawyer, paralegal, or articling student can recover a reasonable representation fee capped at 15% of the total claim. That means the maximum recoverable fee jumps to $7,500.
That said, when you weigh the capped recovery amounts against the actual cost of trial preparation, it’s easy to see why mediation is the more efficient option.
How Can I Help?
I’ve mediated 550+ files and now bring that evaluative, caucus-management skill set to mediation. Through my Diversum suite—Standard, Speediation, and Prediation—the process is tailored to the file and the people in it.
Do you have a $50,000-and-under dismissal brewing? Let’s chat. I’m always up for a quick Zoom or a real-world coffee. Early mediation could save your client (or your firm) a year of waiting and a stack of costs.
Find a spot on my calendar here (https://coopermediation.ca/logan-cooper-online-calendar/), or DM me on LinkedIn.
ABOUT THE AUTHOR
Logan Cooper joined the Cooper Mediation team in November 2017 and devotes 100% of her professional time to mediating at roster-rates. She has mediated over 550 cases in the areas of personal injury, property damage, employment, long-term disability and other insurance-related disputes. She has handled global mediations, cases with multiple parties, self-represented litigants and cases with complicated technical and interpersonal challenges.
Logan can be reached at logan@coopermediation.ca or (416) 726-1344.