Prescription (limitation) is the legal mechanism by which a claim becomes unenforceable after the passage of a specified period, provided the debtor expressly invokes it. In Swiss law, the rules on prescription are governed by arts. 127 to 142 CO, substantially revised by the act that entered into force on 1 January 2020. This revision notably extended the periods applicable to personal injury and introduced new mechanisms. PBM Avocats in Geneva and Lausanne advises its clients on the management of prescription periods and strategies for interrupting or suspending their running.
General Prescription Periods (art. 127–128 CO)
Swiss law distinguishes several general prescription periods:
| Type of Claim | Period | Legal Basis |
|---|---|---|
| General rule (all claims) | 10 years | Art. 127 CO |
| Rents, interest, other periodic benefits | 5 years | Art. 128 no. 1 CO |
| Civil liability claims (relative) | 3 years from knowledge | Art. 60 para. 1 CO (revised) |
| Civil liability claims (absolute) | 10 years from the harmful act | Art. 60 para. 1bis CO (revised) |
| Personal injury (absolute) | 20 years from the harmful act | Art. 60 para. 1bis CO (revised) |
| Wages and employment claims | 5 years | Art. 128 no. 3 CO |
| Mobile sale claims | 2 years (warranty for defects) | Art. 210 CO |
| Intentional or criminal acts | 20 years absolute | Art. 60 para. 1bis CO (revised) |
The Reform of 1 January 2020: Main Changes
The revision of prescription law brings substantial changes for personal injury and damage caused intentionally:
- The relative (subjective) period increases from 1 year to 3 years from knowledge of the damage and the person responsible (art. 60 para. 1 CO);
- The absolute (objective) period remains 10 years for material damage;
- For personal injury, the absolute period is extended to 20 years from the harmful act;
- For intentional acts, the absolute period is also 20 years;
- The suspension of prescription during amicable settlement negotiations is enshrined in law.
Interruption of Prescription (art. 135 CO)
Interruption of prescription erases the elapsed period and starts a new period of the same duration. It may result from:
- An acknowledgement of debt by the debtor (payment of an instalment, request for an extension, written acknowledgement);
- A payment order (enforcement proceedings under the DEBA);
- A conciliation request or a court action;
- A bankruptcy petition or an attachment request.
Note: a simple letter of demand without formal enforcement proceedings does not interrupt prescription in Swiss law (contrary to what some believe). Only acknowledgement of debt by the debtor or a formal procedural act effectively interrupts the period.
Suspension of Prescription (art. 134 CO)
During suspension, the period does not run but resumes where it had stopped (unlike interruption which resets to zero). Prescription is suspended:
- Between spouses during marriage;
- Between parents and children during the minority of the latter;
- Between guardian/curator and ward/person under guardianship;
- During amicable settlement negotiations (since 2020);
- During the course of judicial or arbitral proceedings.
Prescription and Tax Law
In tax law, prescription periods differ and are often longer. In matters of direct taxation (cantonal and communal income tax, federal direct tax), the prescription period for the right to tax is 5 years from the end of the tax period (10 years in the event of intentional tax evasion). The right to recover tax prescribes after 10 years (15 years in the event of tax fraud). These periods are governed by cantonal and federal tax law and apply independently of the CO rules.
Prescription and Litigation Strategy
Management of prescription periods is a major issue in any dispute. PBM Avocats recommends:
- Calendaring deadlines as soon as a potential dispute is identified;
- Quickly obtaining a written acknowledgement of debt or initiating a payment order;
- Using the conciliation request (art. 197 et seq. CPC) which interrupts prescription and opens a path to amicable settlement;
- Verifying whether special provisions (employment law, civil liability law) apply with different periods.
Frequently Asked Questions on the Limitation of Claims in Switzerland
How did the 2020 revision change prescription in Swiss law?
The revision of prescription law that entered into force on 1 January 2020 brought several major changes. It introduced a new relative prescription period of 3 years (compared to 1 year previously) for non-contractual civil liability claims, a period running from knowledge of the damage and the person responsible. It also extended the absolute period for personal injury to 20 years (compared to 10 years). For damage caused intentionally, the period is 20 years in all cases. These new rules apply to claims not yet prescribed on the date of entry into force.
What acts interrupt prescription in Swiss law?
Under art. 135 CO, prescription is interrupted by acknowledgement of debt (including payment of interest or instalments, request for an extension or other acts that implicitly acknowledge the debt). It is also interrupted by enforcement acts (payment order under the DEBA), a bankruptcy petition, and a conciliation request or the bringing of court action. After the interruption, a new prescription period of the same duration begins to run.
Can prescription be suspended (not interrupted)?
Yes, art. 134 CO provides for cases of suspension of prescription during which the period does not run but is not reset. Prescription does not run: between spouses, between parents and minor children, between guardian and ward during guardianship, against persons under guardianship, during negotiations that prevent the creditor from acting. Since the 2020 revision, suspension also covers the duration of a mediation or conciliation procedure. At the end of the suspension, the period resumes where it had stopped.
What is the prescription period applicable to wage claims?
Wage claims (salaries, overtime, bonuses, holiday pay) prescribe after 5 years under art. 128 no. 3 CO (special period). This period begins to run from the due date of each claim (each month for a monthly salary). The prescription period may be interrupted by a written demand addressed to the employer, a payment order or a conciliation request. In the event of dismissal, the employee must act quickly to avoid their claims becoming prescribed.
Can a party invoke prescription of their own motion or must it be raised?
In Swiss law, prescription must be raised by the party relying on it (art. 142 CO); the judge cannot apply it of their own motion. It is a dilatory exception (not an automatic extinction of the claim). The debtor party must therefore formally invoke the prescription in their submissions. If they fail to do so, the judge may award the entire claim even if it is prescribed. This rule differs from that applicable to forfeiture periods (Verwirkungsfristen), which must on the contrary be noted by the judge of their own motion.