Limitation Periods in Employment Law

Limitation is the period within which a claim may be enforced by litigation. When it expires, the claim does not disappear, but if the debtor raises the limitation defence, it cannot be enforced through the courts. Courts do not apply limitation of their own motion; in this respect it differs from forfeiture periods.

The Five-Year Period

The following claims are subject to a five-year limitation period:

• Severance pay, payment in lieu of notice and bad faith compensation,
• Pay for unused annual leave,
• Compensation for breach of the equal treatment principle,
• Wages, bonuses, overtime, weekly rest and public holiday pay.

When the Period Starts

• Severance, notice, bad faith, annual leave and discrimination compensation: The date the contract ends,
• Periodic wage claims: The date each claim falls due; the period therefore runs separately for each month.

This difference matters: for a long-serving employee, overtime and wage claims older than five years may be time-barred, while severance pay may be claimed for five years after the contract ends.

Suspension and Interruption

• Mediation: The limitation period is suspended from the application to the mediator until the final minutes are drawn up.
• Interruption: Filing a claim, enforcement proceedings or the debtor’s acknowledgement of the debt interrupts limitation; a new period starts.

Other Periods

Pecuniary and non-pecuniary damages claims arising from workplace accidents and occupational diseases are subject to longer limitation periods under the general rules. These should be calculated according to the nature of the event.