What Is Statute Of Limitations?

In the realm of Chinese law, the statute of limitations refers to the time limit within which individuals or organizations must initiate legal proceedings for specific types of civil disputes. It sets the timeframe during which individuals or organizations must exercise their rights or resolve their disputes.

The purpose of the statute of limitations is to ensure social order and fairness, preventing unresolved legal disputes from lingering indefinitely. We have a common saying in the legal world which says: the law does not protect people who sleep on their rights. In China, different types of legal matters are subject to different limitations, including criminal, civil, labour and administrative cases. For the purpose of this video, we will focus on civil and labour cases.

When it comes to civil disputes, the Civil Code of China prescribes the general statute of limitations. In most cases, the statute of limitations for civil claims is three years. However, there are circumstances where this period may be extended to five years or longer. It is important to note that certain types of civil claims, such as personal injury compensation, may have different limitation periods. In the case of labor disputes, it is important to note that the statute of limitations is significantly shorter, with a timeframe of only one year.

It’s worth highlighting that the statute of limitations may be interrupted or suspended due to special circumstances. For example, if a party to the dispute is sentenced to imprisonment, detained, or suffering from a serious illness, the statute of limitations will be suspended until these circumstances are resolved.

To prevent the risk of losing a lawsuit based on the statute of limitations, it is crucial for the affected party to initiate legal action or undertake other lawful measures to assert their rights prior to the expiration of the limitations period. One effective strategy is to send a lawyer’s letter to refresh the statute of limitations. By refreshing the statute of limitations, you effectively extend the timeframe by an additional three years. Failure to take such action may significantly diminish the chances of success in winning the lawsuit.