Work out how much notice to give when you quit a job in Canada and your last day of work. It takes into account your province, your length of service, your contract and the usual 2 weeks' notice.
Free, no sign-up
Calculate →
What is a Limitation Period?
A limitation period (or prescription period) is the time limit within which you must start a legal action, such as filing a lawsuit in court. If you miss this deadline, your claim becomes "statute-barred," meaning the court will likely refuse to hear it, even if your claim is otherwise valid. Each Canadian province and territory has its own legislation, called a Limitations Act or similar, which sets these deadlines for different types of claims.
How is the Limitation Period Calculated in Canada?
The calculation follows a basic rule: the clock starts running on the date the claim is discovered and stops after a set number of years, which varies by province. However, a key feature of limitation law is that the clock can be restarted. If the person who owes the obligation (the debtor) makes a written acknowledgement of the debt or makes a partial payment after the original start date, the limitation period begins anew from that later date.
The standard formula is: Limitation Start Date + Statutory Period (in years) = Expiry Date.
The Limitation Start Date is the later of:
- The date the claim was discovered (the "discovery date").
- The date of the last written acknowledgement or part payment by the debtor.
The Statutory Period is typically 2 years in most provinces and territories, including Ontario, British Columbia, Alberta, Manitoba, Nova Scotia, and the territories, for most debt and contract claims. Quebec's Civil Code sets a general 3-year prescription period.
Worked Example
Sarah in Ontario loaned a friend $5,000 on May 15, 2024, with repayment due June 15, 2024. The friend did not pay. Sarah's claim for the debt was discoverable on June 16, 2024. The base limitation period in Ontario is 2 years. Without any acknowledgement, her deadline to sue would be June 16, 2026.
However, on January 10, 2025, the friend sent Sarah an email saying, "I haven't forgotten about the $5,000 I owe you." This constitutes a written acknowledgement. The limitation period restarts from January 10, 2025. Adding 2 years, her new expiry date becomes January 10, 2027. By securing this acknowledgement, Sarah gained over six additional months to pursue legal action.
Common Scenarios and Exceptions
Debts: Most unpaid loans, invoices, and credit card debts fall under the standard period for your province. Always document any communication where the debtor admits the debt or makes a payment.
Breach of Contract: The clock usually starts from the date of the breach (e.g., failure to deliver a service).
Personal Injury & Tort: These often have special rules, sometimes with shorter limitation periods (e.g., 2 years from the date of injury).
Claims Against Government Bodies: Much shorter notice periods (often measured in months) may apply before you can even start a lawsuit.
Latent Defects: For issues like hidden construction defects, the discovery date may be years after the work was completed, extending the potential claim period.
What Document Should You Prepare Next?
If your claim is still within the limitation period and you wish to preserve your rights, consider preparing a Debt Acknowledgment Letter. This formal document, signed by the debtor, clearly records the outstanding debt, its amount, and the terms for repayment. It serves as powerful evidence to restart the limitation clock and can help avoid future disputes. Our calculator can prefill key dates into such a letter to ensure accuracy.