Wages expire by prescription if not exercised for 3 years.
Prescription of wage claims
- A claim for wages under 「Labor Standards Act」 shall be extinguished by prescription, unless exercised for 3 years. (Article 49, 「Labor Standards Act」)
※ If an entitlement to receive a ‘retirement allowance’ under this act has not been exercised within 3 years, the extinctive prescription of such entitlement shall be complete. (Article 10, 「Act on the Guarantee of Employees’ Retirement Benefits」)
Starting point of wage claims
- Extinctive prescription shall run from the time it becomes possible to exercise a certain right. (Article 166(1), 「Civil Act」)
In the case of certain reasons, the extinctive prescription of wages is suspended.
Reason for suspension of extinctive prescription
- Extinctive prescription shall be interrupted in any of the following cases. (Article 168, 「Civil Act」)
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Reason for suspension
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Description
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① Claim
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• Claims include judicial claims (Article 170, 「Civil Act」), participation in bankruptcy proceedings (Article 171, 「Civil Act」), payment orders (Article 172, 「Civil Act」), subpoena for reconciliation (Article 173, 「Civil Act」), voluntary attendance (Article 173, 「Civil Act」), and notice (Article 174, 「Civil Act」). ※ A peremptory notice shall have no effect of interrupting prescription unless a demand by judicial proceedings, intervention in bankruptcy proceedings, a summons for compromise or a voluntary appearance for the same purpose, an attachment, a provisional attachment or a provisional disposition is taken within 6 months. (Article 174, 「Civil Act」)
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② Attachment, provisional attachment, or provisional disposition
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• An attachment, a provisional attachment, or a provisional disposition, shall have no effect of interrupting prescription if annulled on the application of the claimant or by reason of non-compliance with any provisions of acts. (Article 175, 「Civil Act」) • An attachment, a provisional attachment,or a provisional disposition, if not effected against the person in whose favour prescription is running, shall not have the effect of interrupting prescription until such person has been notified thereof. (Article 176, 「Civil Act」)
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③ Acknowledgement
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• In order to make an acknowledgement, having the effect of interrupting prescription, no capacity or authority for disposition in respect of the rights of the other party is required. (Article 177, 「Civil Act」)
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Proceeding of prescription after interruption of extinctive prescription
- Where a prescription is interrupted, the period of prescription passed until the interruption shall not be computed, and the prescription which was interrupted begins to run anew from the time when the cause of such interruption has ceased to exist. (Article 178(1), 「Civil Act」)
- Prescription which was interrupted by a demand by judicial proceedings begins to run anew from the time when the judgment thereon becomes finally binding in accordance with the provisions of the preceding paragraph. (Article 178(2), 「Civil Act」)