Accounting for Law
Employment & Labour

Small claims limit increase big reason for more cases

The increased limit that someone can seek in small claims court has been a big reason for the growth in case numbers, Toronto employment lawyer Doug MacLeod tells Law Times.

MacLeod, principal at MacLeod Law Firm, says the increase hit a sweet spot in the value of wrongful dismissal cases, and while there aren’t many cases worth less than $10,000, the increased limit to $25,000 brings more cases into the mix, he says.

“It’s a good place for employees who don’t earn a lot of money,” MacLeod says in the article. “If you’re fairly long term, earning $25,000 a year, you could claim for up to a year’s pay.”

Depending on how long you have worked for an employer, the increased limit is also good for employees earning higher wages.

“If you’re earning $80,000 for a year or two, three months’ pay comes out at about $20,000,” MacLeod says in the article. “Even if you earn $120,000 a year and you got a new job after two months, your potential damages are still within the jurisdiction.”

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