Time limits for legal action: 3 years for civil lawsuits, 1 year for labor arbitration; once the deadline passes, a simple “statute of limitations exceeded” claim can block your case

19. Time limits for legal action: 3 years for civil lawsuits, 1 year for labor arbitration; once the deadline passes, a simple “statute of limitations exceeded” claim can block your case

Cost: Zero cost. Don’t just hope for payment in silence — use WeChat, text messages, email, or certified mail to create a paper trail.

In plain terms: The statute of limitations for civil lawsuits is three years, counted from the day you become aware your rights were violated. Once that period ends, the court won’t act on its own; however, if the debtor simply argues “the deadline has passed,” you lose the right to recover what’s owed. A single documented demand for payment can reset that three‑year clock entirely. Labor disputes follow a different rule: the arbitration deadline is just one year.

Benefit: The Civil Code states that “the limitation period for filing a civil lawsuit is three years, calculated from the date the right‑holder knows or should know that his rights were infringed and who the obligor is.” This period may not exceed twenty years from the actual infringement. When it expires, the debtor may invoke a defense of non‑performance. Courts do not monitor these deadlines automatically; however, once raised by the debtor they become binding. Four events can interrupt the clock, each resetting the three‑year period: (1) you demand performance; (2) the debtor promises to perform; (3) you file a lawsuit or labor arbitration; (4) any other circumstance with comparable effect. For installment agreements, the countdown starts on the final due date. Certain claims are exempt from any limitation period: requests to stop infringement, remove obstacles, eliminate hazards; recovery of real property or registered movable assets; alimony, child support, and maintenance; plus other cases specified by law. Labor arbitration follows a one‑year rule, also measured from the date the worker becomes aware of the violation; however, if a dispute over unpaid wages arises while the employment relationship still exists, the worker may file at any time — otherwise the deadline is one year after the contract ends (nationwide).

Evidence grade: A

Sources: National People's Congress (2020). Civil Code (Articles 188, 189, 192, 193, 195, 196, 197). <https://www.spp.gov.cn/spp/fl/202006/t20200602_463888.shtml>; National People's Congress Standing Committee (2007). Labor Dispute Mediation and Arbitration Law (Article 27). <https://rsj.ankang.gov.cn/Content-2150407.html> (Reprinted by Ankang Human Resources and Social Security Bureau)

Notes: This is probably the cheapest tip in the entire book. A single traceable demand letter can restart the three‑year window; without it, you risk forfeiting your right to win the case. Agreements such as “we won’t invoke the statute of limitations” or negotiated extensions of the deadline carry no legal weight. Conversely, if the debtor promises payment after the deadline has passed, they can no longer rely on that defense. Once payment has been voluntarily made, it cannot be reclaimed. For promissory notes and guarantees, see item 18; matters involving enforcement are covered in item 20. Overtime pay and unused vacation compensation follow the labor‑arbitration rules described in sections 19.1 and 19.2.