Ontario’s civil justice system is changing—and for the better. After years of calls for reform, we’re finally seeing movement toward a litigation model that prioritizes front-end efficiency, earlier engagement, and reduced procedural waste. New procedural tools are on the horizon: mandatory early disclosure, structured case management, and a reimagined approach to how disputes enter the system in the first place.
These reforms represent more than just tweaks to the Rules of Civil Procedure. They signal a cultural shift. And nowhere is that shift more needed, or more naturally suited, than in employment law.
Employment disputes are, at their core, human conflicts. They are often emotionally charged, reputationally risky, and economically irrational to litigate in full. They rarely benefit from the slow grind of pleadings, motions, and discoveries. Yet that is exactly the route many of these cases still take.
As a former litigator and now full-time mediator, I believe we are entering a new era of resolution—one where mediation, particularly early mediation, should become the default path for resolving employment disputes. This blog is a call to action for counsel, employers, employees, and policy-makers. The time to embed early mediation into Ontario’s employment dispute culture is now.
A New Litigation Landscape: What the Reforms Aim to Fix
Let’s start with the broader context.
The Ontario Civil Rules Review—currently in Phase 2 of consultation[1]—proposes a fundamental redesign of civil procedure. The guiding principle? Front-end justice. The reforms aim to reduce procedural drag, eliminate waste, and reorient litigation around early issue identification and resolution. Among the changes under discussion:
- A formal 90-day pre-litigation notice period, akin to a demand letter with teeth;
- Early, mandatory exchange of core documents, long before discoveries;
- Streamlined case management to keep files moving;
- Mediation and early resolution being explicitly embedded as default off-ramps, not late-stage diversions.
These reforms have obvious relevance to commercial litigation and personal injury, but employment law should not be left behind. Indeed, it is in employment disputes—where emotional, relational, and reputational interests are at stake—that these reforms may have the most profound human impact.
The Current Employment Litigation Reality: Costly, Combative, and Often Unnecessary
To understand why early mediation is so well suited to employment law, consider how these cases currently unfold.
The typical wrongful dismissal claim involves an employee terminated without cause, often after years of service, sometimes without clear communication or adequate support. Emotions are raw. There’s confusion, loss, sometimes a sense of betrayal.
The lawyer is called. A demand letter is sent. Then pleadings begin, often thick with allegations—bad faith, misrepresentation, poisoned workplace, moral damages, you name it. Employers feel attacked and dig in. Employees feel unheard and double down.
Legal costs escalate quickly. A file worth $35,000 in damages can burn through $70,000 in legal fees before trial even starts. And for what? In most cases, the outcome is foreseeable: the employee receives some form of notice-based compensation, perhaps with a tweak for bad faith or mitigation, and the employer agrees to pay in exchange for a release. The rest is heat, not light.
We have to ask: why are we still litigating these files the same way we litigate multi-million-dollar commercial disputes?
Early Mediation: The Right Tool at the Right Time
Enter mediation. Not the day-before-trial variety, and not the post-discovery stall tactic. I mean true early mediation—at the outset of the dispute, before positions harden and before the parties are locked into adversarial narratives.
There are several compelling reasons why employment disputes should be mediated early:
- Confidentiality Matters
Employment disputes often implicate sensitive workplace issues. Accusations of harassment, toxic culture, or misconduct can have reputational consequences far beyond the four corners of the litigation. Mediation provides a private forum to address grievances without public record or reputational harm. This matters to both sides.
- Power Imbalances Are Real
In many employment disputes, particularly involving lower-wage or marginalized workers, there is a significant power and resource gap between the parties. Employers often have access to legal teams and institutional knowledge. Employees may be navigating the process for the first time. A skilled mediator can help level the playing field by creating a space where both voices are heard.
- Outcomes Can Be Creative
Courts can award damages. Mediation can deliver so much more. From reference letters and non-disparagement clauses to transitional coaching or phased payouts, the settlement options in mediation are only limited by the parties’ imagination. That flexibility is especially valuable in employment cases, where re-employment and reputation are often more important than dollars.
- Costs Are Contained
Every employment lawyer has a story of the $40,000 claim that cost $100,000 to litigate. Mediation, especially early mediation, can stop that spiral. By resolving the case before discoveries or procedural motion battles, parties preserve resources and avoid irrecoverable costs.
- It Supports Dignity and Closure
Litigation is about rights. Mediation is about resolution. For many employees, particularly after a career-ending dismissal, the ability to speak their truth, receive acknowledgment, and move on matters more than the precise quantum of damages. Mediation offers that closure in a way court rarely can.
Raising the Floor: What the $50,000 Small Claims Limit Will Change
In October 2025, Ontario will increase the monetary jurisdiction of the Small Claims Court from $35,000 to $50,000[2]. Ontario Regulation 42/25 officially amends section 1 of O. Reg. 626/00 (Small Claims Court Jurisdiction and Appeal Limit). Effective October1,2025 (or on the day it is filed, whichever is later), the regulation replaces every reference to “$35,000” with “$50,000” in that section, thereby increasing the monetary limit per plaintiff in Small Claims Court from $35,000 to $50,000.
This change may appear administrative, but for employment law it’s a quiet revolution.
Many wrongful dismissal and constructive dismissal claims fall under $50,000 when severance and mitigation are properly accounted for. This jurisdictional expansion means that a greater share of employment disputes will now fall into a forum designed for speed, simplicity, and capped legal costs.
The upside? Faster resolution. Less procedural entanglement. Fewer motions and discoveries.
The caution? Small Claims still involves a public hearing, no discovery process, and limited judicial time. It’s a good forum—but mediation might be better.
For many employees, especially those seeking closure and future re-employment, a public hearing—even in Small Claims Court—carries risk. For many employers, the threat of being named in the public record remains a reputational concern.
Early mediation becomes a compelling off-ramp before the Small Claims train even leaves the station.
Why Employment Should Lead the Mediation Revolution
The Ontario reforms don’t yet mandate early mediation for employment disputes. But they should.
Employment law is fundamentally relational. Whether the conflict arises between an employer and a departing employee or impacts others in the workplace or the broader industry, the fallout from workplace disputes often extends beyond the immediate parties. Mediation offers a way to repair those relationships—something litigation rarely achieves.
Resolving these disputes quickly is also critical. The longer a conflict drags on, the more harm is done, not just financially, but emotionally and professionally. Delay compounds stress, damages reputations, and makes future collaboration or re-employment less likely.
And, ultimately, most of these cases settle. The majority of employment disputes in Ontario settle before trial. Indeed, some reports indicate that well over 80% of employment cases in Ontario resolve out of court[3], while mandatory mediation rules and broader civil litigation data suggest that over 90% of all civil cases settle before trial.
The only real question is when the parties choose to engage in meaningful resolution—and how much time, money, and goodwill is lost getting there.
We are long past the point of needing proof that mediation works. The better question is: why are we still waiting to use it?
What I’m Offering—and Where I’m Going
I have litigated many employment disputes. I’ve seen what works and what doesn’t. I’ve seen how delay and ego can derail resolution. And I’ve seen how transformative mediation can be—when it’s done early, and done well.
Patey Mediations practices employment mediation because I believe this is where meaningful dispute resolution is most urgently needed. I’m offering:
- Half- and full-day employment mediation blocks via Zoom;
- A pre-mediation file triage approach to help counsel identify resolution opportunities early;
- A neutral, respectful process that keeps doors open—not closed.
For lawyers, HR professionals, and litigants: you don’t have to wait for the courts or the Rules Committee to tell you to mediate early. You can choose to do it now.
And I’m here to help you make that happen.