Workers may have various receivables from their employers. These receivables may include wages, overtime pay, compensation, bonuses, and more. However, workers have a certain period of time to claim these receivables. This period is called the statute of limitations period. After the statute of limitations expires, the right to claim workers’ receivables is lost.
In this blog post, we will give detailed information about the statute of limitations for employee receivables. You will learn which receivables are subject to which statute of limitations and the reasons that suspend or interrupt the statute of limitations.
Which receivables are subject to which statute of limitations?
Fee receivables: 5 years
Overtime pay, weekend pay, national holiday and general holiday pay: 5 years
Travel, bonus, permit fee: 5 years
Notice and severance pay: 5 years
Compensation arising from work accident: 5 years
Contractual indemnity: 5 years
Social insurance contributions: 10 years
Reasons that suspend or interrupt the statute of limitations:
The plaintiff or creditor is a minor or does not have the capacity to distinguish
The creditor is unaware of his receivables
Coercion, threat, deception or fraud
The creditor is the heir of the debtor
Debtor’s bankruptcy
The statute of limitations does not apply in cases filed against civil servants and public institutions.
When Does the Statute of Limitations Start?
The statute of limitations begins to run from the date the receivable becomes due. The fact that the receivable is due means that the creditor can claim the receivable. For example, a worker’s monthly wage is paid on the last day of each month. In this case, the employee’s right to demand that month’s wage becomes due on the last day of that month. The statute of limitations begins to run from that date.
What Happens After the Statute of Limitations Expires?
After the statute of limitations expires, the worker loses his right to claim his receivables. In this case, even if the employer does not pay the receivable, the employee cannot collect the receivable by filing a lawsuit.
