Can I Sue My Employer in the Small Claims Court?
The Small Claims Court hears wrongful dismissal lawsuits.
As of Oct. 1, you can bring a lawsuit with a claim value of up to $50,000 to Small Claims Court. The maximum amount was previously $35,000, so this increase will make the Small Claims Court an attractive venue for more employment claims.
A lawsuit by an employee in the Small Claims Court is not limited to just damages for an employer’s failure to pay enough notice at the time of termination. For instance, an employee can sue in court for unpaid wages and even for discrimination, if the alleged discrimination is closely connected with the wrongful dismissal.
Like any legal proceeding, there are pros and cons to suing in Small Claims Court. The pros include lower filing fees and a quicker process (relative to the Superior Court); the cons include no discovery rule, meaning the employer is not required to disclose all relevant documents like they would need to do in Superior Court.
However, if your claim is not worth more than $50,000 then you generally must proceed in the Small Claims Court. If you puff up your damages claim and bring it in Superior Court but win less than $50,000 at trial, the Superior Court might not award you costs even though you technically won the lawsuit (the successful party in a lawsuit presumptively gets some of their legal costs paid by the unsuccessful party).
Also keep in mind that, if you make a claim for unpaid wages in court, you cannot later change your mind and file a wage claim with the Ministry of Labour.
The same is true when it comes to termination pay: you can either sue in court for wrongful dismissal or go the Ministry with a claim for termination pay, but you cannot do both. The same is true for discrimination; you must choose between the courts and the Human Rights Tribunal.
It is always a good idea to speak with a lawyer before you start any kind of legal claim, as there are often multiple options to navigate, each with their own pros and cons.
This article was originally published by The Hamilton Spectator.
