Limitation period for employment standards claims
The limitation period for employment standards claims is the time limit on filing a complaint and on how far back wages can be ordered paid. Ontario’s Employment Standards Act, 2000 sets two years for each, and the Canada Labour Code sets six months for a federal complaint, which the Code’s Head may extend in listed cases.
A buyer judging how far back wage claims can reach meets this when reading the target’s employment file. It is separate from the limitation period for deal claims. This entry covers Ontario and federal employers; check the rules where you are.
Ontario
A complaint about a contravention that occurred more than two years before it was filed is deemed not filed (s.96(3)). Separately, an officer may not order wages that became due more than two years before the complaint was filed (s.111(1)); s.111(2) and (3) set matching limits for another employee’s complaint and for an inspection.
Federal employers
Under Part III of the Canada Labour Code, a complaint of non-payment of wages or other amounts owed under that Part must be made within six months of the last day the employer was required to pay them, and another complaint within six months of the day its subject arose (s.251.01(2)). The Code’s Head may, subject to the regulations, extend those periods in the cases in s.251.01(3).
See how to check employment records in due diligence and the entry on an employment standards complaint.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of OntarioGovernmentEmployment Standards Act, 2000, S.O. 2000, c. 41
- 02Government of Canada (Department of Justice)GovernmentCanada Labour Code, R.S.C. 1985, c. L-2
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