Explanations ofLabor-Related Laws

Employment Consultation Center
For People, Life, and the Future0Introduction
Under the National Strategic Special Zone Act (Act No. 107 of December 13, 2013), the government is supposed toprovide information, consultation, advice and other forms of assistance to foreign companies and other business operatorsthat establish a place of business and newly hire workers in a national strategic special zone. The purpose of this measure
is to allow smooth implementation of businesses to enhance Japan's international industrial competitiveness or create
centers of international economic activities in national strategic special zones by preventing individual labor-related
disputes and taking other actions. The Act is accompanied by an additional resolution of the Diet stipulating that "thegovernment shall provide workers with sufficient information on this Act while providing business operators with assistancefor preventing individual labor-related disputes under this Act."The Employment Consultation Center was established to provide such necessary information and assistance. The Centeris expected to make it easier for newly created enterprises, global companies and others to do business without individuallabor-related disputes by helping them accurately understand the employment rules of Japan and improve foreseeability.
The Center is also expected to help increase the motivation and ability of workers by restricting long working hours,
preventing industrial accidents and ensuring stable employment.
This booklet, which briefly explains the key points of Japan's labor-related laws, including the Labor Standards Act andthe Labor Contract Act, is intended for use at the Employment Consultation Center for the purpose of giving business
operators and workers advice on employment management and labor contracts.

1

Table of Contents
Chapter 1 : Definitions of Worker and Employer ................................................................................................................... 6
I.
II.
III.

Definition of Worker ........................................................................................................................... 6
Definition of Employer ....................................................................................................................... 7
Contract for Work and Mandate.......................................................................................................... 8

Chapter 2 : Recruitment ........................................................................................................................................................ 10
I.
II.

Working Conditions in Job-Opening Information and Actual Labor Contracts ............................... 10
Prohibition of Restrictions and Discrimination upon Recruitment and Employment ...................... 11

Chapter 3 : Labor Contracts .................................................................................................................................................. 15
I.
II.
III.

Principles of Labor Contracts ........................................................................................................... 15
Establishment and Change of Labor Contracts ................................................................................. 17
Contracts with a Fixed Term (Fixed-Term Labor Contracts) ............................................................ 22
24
IV.
Clear Indication of Working Conditions ........................................................................................... 26- Reference - Side Work and Extra Work ..................................................................................................... 37
Chapter 4 : Working Hours ................................................................................................................................................... 44
I.
II.
III.
IV.
V.
VI.
VII.

Statutory Working Hours .................................................................................................................. 44
Definition of Working Hours ............................................................................................................ 44
Variable Working Hours Systems ..................................................................................................... 46
Proper Management of Working Hours ............................................................................................ 58
System to Deem Hours for Work Outside Workplaces as Regular Working Hours ......................... 61
Discretionary Work System .............................................................................................................. 61
Aggregation of Working Hours......................................................................................................... 70

Chapter 5 : Rest periods, days off, leave, etc. ....................................................................................................................... 71
I.
II.
III.
IV.

Rest Periods ...................................................................................................................................... 71
Days Off ............................................................................................................................................ 72
Annual Paid Leave ............................................................................................................................ 75
Systems for Leave and Absence from Work, Guarantee of Civil Rights .......................................... 81

Chapter 6 : Exclusion from Application of Provisions on Working Hours, Rest Periods and Days Off .............................. 86
I.
II.

Exclusion from Application of Provisions on Working Hours, Rest Periods and Days Off ............. 86
Exclusion from Application of Provisions on Working Hours, Rest Periods, Days Off and Premium
Wages for Work at Night .................................................................................................................. 88• High-level professional system .................................................................................................................. 89

Chapter 7 : Overtime Work and Work on Days Off .............................................................................................................. 91
I.

Overtime Work and Work on Days Off............................................................................................. 91

Chapter 8 : Wages ................................................................................................................................................................. 96
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.

Definition of Wages .......................................................................................................................... 96
Decision of Wages ............................................................................................................................ 96
Five Principles of Payment of Wages ............................................................................................... 97
Emergency Payments of Wages ...................................................................................................... 100
Allowance for Absence from Work................................................................................................. 100
Guaranteed Payment at Piece Rates ................................................................................................ 100
Premium Wages .............................................................................................................................. 100
Average Wage ................................................................................................................................. 106
Minimum Wages ............................................................................................................................. 107
Retirement Benefit System ............................................................................................................. 108

Chapter 9 : Protection of Women........................................................................................................................................ 109

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I.
II.
III.

Limitation on Women's Work ......................................................................................................... 109
Protection of Expectant and Nursing Mothers, etc. (Maternal Protection) ..................................... 109
Measures for Women for Whom Work during the Menstrual Period would be Difficult ............... 113

Chapter 10 : Child Care and Family Care Leave System ................................................................................................... 114
I.
II.
III.

Child Care and Family Care Leave System .................................................................................... 114
Protective Measures for Workers with Family Responsibilities ..................................................... 116
Obligation to Establish General Employers Action Plan under the Act on Advancement of
Measures to Support Raising Next-Generation Children............................................................... 124

Chapter 11 : Prohibition of Discrimination and Countermeasures against Harassment ..................................................... 125
I.
II.
III.
IV.
V.
VI.

Prohibition of Discriminatory Treatment on the Basis of Sex ........................................................ 125
Prohibition of Discrimination against Persons with Disabilities and Obligation to Give Reasonable
Consideration ................................................................................................................................. 127
Countermeasures against Sexual Harassment in the Workplace..................................................... 128
Countermeasures against Harassment in Relation to Pregnancy, Childbirth, and Child Care Leave,
etc. in the Workplace ...................................................................................................................... 132
Countermeasures against Power Harassment in the Workplace ..................................................... 134
Obligation to Establish General Employers Action Plan under the Female Participation Promotion
Act, etc. and to Disclose Information on Women's Active Participation .................................... 136

Chapter 12 : Special Regulations Concerning Minors ........................................................................................................ 137
I.
II.
III.
IV.
V.

Age Restrictions.............................................................................................................................. 137
Limitation on Overtime Work and Work on Days Off .................................................................... 137
Prohibition of Work at Night .......................................................................................................... 137
Limitation on Work for Minors ....................................................................................................... 137
Others .............................................................................................................................................. 139

Chapter 13 : Termination of Labor Relationship, etc.......................................................................................................... 140
I.
II.
III.
IV.
V.

Resignation ..................................................................................................................................... 140
Dismissal......................................................................................................................................... 141
Termination of Labor Relationship upon Expiration of Labor Contract Term ............................... 148
Termination of Labor Relationship upon Mandatory Retirement ................................................... 151
Procedures upon Termination of Labor Relationship ..................................................................... 155

Chapter 14 : Rules of Employment..................................................................................................................................... 158
I.
II.
III.
IV.
V.
VI.

Significance and Effects of Rules of Employment ......................................................................... 158
Obligation to Draw up Rules of Employment ................................................................................ 158
Matters to be Decided in Rules of Employment ............................................................................. 159
Hearing of the Opinions from a Representative of Workers ........................................................... 160
Dissemination of Rules of Employment among Workers ............................................................... 160
Alteration of Rules of Employment ................................................................................................ 160

Chapter 15 : Part-Time and Fixed-Term Workers ............................................................................................................... 163
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.

Responsibility of Employers under the Part-Time and Fixed-Term Workers Act .......................... 163
Part-Time and Fixed-Term Workers................................................................................................ 163
Clear Indication of Working Conditions upon Hiring..................................................................... 163
Rules of Employment for Part-Time and Fixed-Term Workers ...................................................... 164
Working Hours, Days Off and Rest Periods ................................................................................... 164
Annual Paid Leave for Part-Time and Fixed-Term Workers .......................................................... 165
Labor Contract Term ....................................................................................................................... 165
Prohibition of Unreasonable Treatment .......................................................................................... 165
Prohibition of Discriminatory Treatment ........................................................................................ 166
Method of Deciding Wages............................................................................................................. 166
Education and Training, and Welfare Facilities .............................................................................. 166
Explanations of the Details of the Measures Taken by an Employer.............................................. 169
Medical Examinations .................................................................................................................... 169
Development of Consultation System ............................................................................................ 169

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XV. Part-Time and Fixed-Term Employment Managers........................................................................ 170
XVI. Shift to Becoming Ordinary Workers ............................................................................................. 170
XVII. Mechanism to Settle Complaints and Disputes .............................................................................. 170
Chapter 16 : Dispatched Workers ....................................................................................................................................... 172
I.
II.
III.
IV.
V.

Worker Dispatching ........................................................................................................................ 172
Worker Dispatching Undertakings .................................................................................................. 172
Points to Note When Accepting Dispatched Workers ..................................................................... 174
Application of the Labor Standards Act, etc. to Dispatch Work ..................................................... 180
Difference from Other Human Resources-related Businesses ........................................................ 187

Chapter 17 : Reassignment, Temporary Transfer, and Employment Transfer .................................................................... 190
I.
II.
III.
IV.
V.

Reassignment .................................................................................................................................. 190
Matters to Note upon Reassignment ............................................................................................... 191
Temporary Transfer ......................................................................................................................... 191
Application of the Labor Standards Act to Temporarily Transferred Workers ............................... 191
Employment Transfer ..................................................................................................................... 192

Chapter 18 : Industrial Safety and Health ........................................................................................................................... 195
I.
II.
III.

Basic Principles for Measures for Industrial Safety and Health ..................................................... 195
Industrial Safety and Health Management System ......................................................................... 197
Health Management ........................................................................................................................ 202

Chapter 19 : Labor insurance .............................................................................................................................................. 220
I.

Labor Insurance (Industrial Accident Insurance and Employment Insurance) ............................... 220

Reference Materials (Forms, etc.)....................................................................................................................................... 225
I.
Related to Various Reports, Notifications and Applications ........................................................... 225
1. Related to the Labor Standards Act ......................................................................................................................... 225
2. Related to the Industrial Safety and Health Act ...................................................................................................... 228
3. Procedures for Labor Insurance .............................................................................................................................. 228(Reference) List of Minimum Wages by Prefecture ................................................................................... 236

4

LegendThe official titles of the Acts referred to in this text are as follows. For some of them, abbreviations in the parentheses are
used.
Official titles
Labor Standards Act
Regulation for Enforcement of the Labor Standards Act
Regulations on Labor Standards for Minors
Labor Contracts Act
Minimum Wage Act
Regulation for Enforcement of the Minimum Wage Act
Employment Security Act
Regulation for Enforcement of the Employment Security Act
Act on Stabilization of Employment of Elderly Persons
Rules on Labor Standards for Women
Act on Comprehensive Promotion of Labor Policies and on Stabilization of Employment and Enhancement of Vocational Lives (Labor Policies
Comprehensive Promotion Act)
Regulation for Enforcement of the Act on Comprehensive Promotion of Labor Policies and on Stabilization of Employment and Enhancementof Vocational Lives (Regulation for Enforcement of the Labor Policies Comprehensive Promotion Act)Act on Securing, etc. of Equal Opportunity and Treatment between Men and Women in Employment
Regulation for Enforcement of the Act on Securing, Etc. of Equal Opportunity and Treatment between Men and Women in Employment(Regulation for Enforcement of the Equal Employment Opportunity Act)Act on the Promotion of Female Participation and Career Advancement in the Workplace (Female Participation Promotion Act)Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (Child
Care and Family Care Leave Act)
Regulation for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children
or Other Family Members (Regulation for Enforcement of the Child Care and Family Care Leave Act)Act on Improvement of Personnel Management and Conversion of Employment Status for Part-Time Workers and Fixed-Term Workers (PartTime and Fixed-Term Workers Act)
Regulation for Enforcement of the Act on Improvement of Personnel Management and Conversion of Employment Status for Part-Time Workers
and Fixed-Term Workers (Regulation for Enforcement of the Part-Time and Fixed-Term Workers Act)Act for Securing the Proper Operation of Worker Dispatching Undertakings and Improved Working Conditions for Dispatched Workers (Worker
Dispatching Act)
Order for Enforcement of the Act for Securing the Proper Operation of Worker Dispatching Undertakings and Protection of Dispatched Workers(Worker Dispatching Order)
Labor Union Act
Industrial Safety and Health Act
Regulation on Industrial Safety and HealthAct on Promoting the Resolution of Individual Labor-Related Disputes (Individual Dispute Resolution Act)Act on Employment Promotion etc. of Persons with Disabilities

5Definitions of Worker and Employer
I. Definition of Worker
The Labor Standards Act defines a worker as "one who is employed at a business or office and receives wages therefrom,regardless of the type of occupation" (Article 9). In other words, a person "who is employed" and "to whom wages are paid"
is a worker. The basic criteria for judging whether a person falls under the category of worker under the Labor Standards
Act are as follows (generally referred to as "employment dependency").
[i] Labor is provided under the direction and supervision of an employer.
[ii] Wages are paid as compensation for labor.
Whether a person falls under a worker under the Labor Standards Act is to be judged by examining whether theemployment dependency is found in substance, irrespective of the details and wording of a contract. For difficult cases,
judgments need to be made by comprehensively taking into account various related factors, in addition to the form ofproviding labor mentioned in [i] above and the compensatory nature of wages mentioned in [ii] above.
Based on judicial precedents and rules for interpretation presented by the Ministry of Health, Labour and Welfare, thecriteria for judging whether a person has the nature of being a worker under the Labor Standards Act are summarized asfollows (a report by the Labor Standards Act Study Group, "Judgment Criteria for the Workers under the Labor Standards
Act," December 19, 1985).

○ Judgment Criteria Concerning Employment Dependency(1) Criteria concerning labor provided under direction and supervisionA.

Whether a person has freedom to accept or reject a request for work or the engagement in work

B.

Whether a person is subject to direction and supervision while performing duties[i]Whether a person receives any concrete direction or order from the employer concerning the details of or
how to perform the duties[ii]

Whether a person sometimes engages in duties other than his/her normal duties based on an order or requestof the employer

C.

Whether a person is subject to restrictions, such as that his/her workplace and working hours are designated andmanagedD.

Whether a person's labor can be substituted(2) Criteria concerning the compensatory nature of wages
Whether wages are judged to be compensation for a person's provision of labor for a certain period of time under the
direction and supervision of the employer* Part-Time Workers / Fixed-Term Workers
Part-time workers are workers whose regular weekly working hours are shorter than those for other ordinary
workers employed at the same business establishment. Fixed-term workers are workers who have concluded a fixedterm labor contract with an employer. The Part-Time and Fixed-Term Workers Act is applied to both categories (see"Chapter 15: Part-Time Workers and Fixed-Term Workers" for the details). Fixed-term workers are also governed by
the Labor Standards Act, the Industrial Safety and Health Act, the Minimum Wage Act and other labor-related acts.
For example, the provisions of the Labor Standards Act concerning labor contracts, dismissal, retirement, annual paid
leave, and rules of employment are applied in the same manner as for full-time workers.

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Hereinafter as used in this text, part-time workers and fixed-term workers are referred to as “part-time and fixedterm workers.”

II. Definition of Employer
An employer under the Labor Standards Act (Article 10 of the same Act) is [i]a business operator, [ii] the manager of a business, and [iii] any other person who
acts on behalf of a business operator in matters concerning workers in the business.
On the other hand, an employee under the Labor Contracts Act (Article 2, paragraph (2) of the same Act) is a person who
is a party to a labor contract concluded with a worker and who pays wages to a worker he/she employs.
Therefore, in the case of a personal business, the owner thereof is the employer, and in the case of a company or otherincorporated organization, the corporation itself is the employer.

7III. Contract for Work and Mandate
1. Contract for Work
The Civil Code provides that "a contract for work shall become effective when one of the parties promises to complete
work and the other party promises to pay remuneration for the outcome of the work" (Article 632). A contractor completes
the work based on his/her own authority and responsibility without receiving direction or supervision from the client or
employer.
Therefore, a contractor generally does not fall under the category of worker. However, even when it is a contract forwork in form, if a client directly gives direction or order to the contractor or otherwise the contractor's employment
dependency is substantially found, the contractor falls under the category of worker.

2. Mandate
The Civil Code also provides that "a mandate shall become effective when one of the parties mandates the other party toperform a juristic act, and the other party accepts the mandate" (Article 643). A mandatary processes the work based on
his/her own knowledge and experience.
Therefore, a mandatary generally does not fall under the category of worker. However, even when it is a mandate inform, if a mandator directly gives direction or order to the mandatary or otherwise the mandatary's employment dependency
is substantially found, the mandatary will be considered to fall under the category of "worker."
ClientMandator

Contractor
Employment agreement

Labor

Order

Contract

Contract for work

Mandate contract

Mandatary

MandateWorker

3. Consignment
In the case of a consignment, a party to a mandate of clerical work (Article 656 of the Civil Code) or a contract for work (Article
632 of the Civil Code), or a commercial agent (Article 27 of the Commercial Code and Article 16 of the Companies Act) also

falls under the category of worker if the person's employment dependency is substantially found as the person and thecompany has a relationship as an employee and an employer and the person works under direction and order of the company.
If a person is found to be working as directed and ordered by a company (judged by comprehensively taking into accountthe place of work, details of the duties, working hours, required expenses, working status reports, obligations andresponsibilities, any history of disadvantageous treatment and sanctions, nature of remunerations and bonuses, reports ofabsence from work, etc.), the person falls under the category of worker even if a written contract clearly states that it is nota labor contract but a consignment contract, and the person has given his/her consent thereto.

4. Officers
Officers of a corporation and organization are in charge of the operation of their corporation or organization as entrusted
thereby and generally do not fall under the category of worker. However, when such officer without the right to execute8business or the right to represent serves as a plant manager or the like and receives wages, he/she falls under a worker to that
extent.

5. Household Employees
The Labor Standards Act does not apply to household employees, in principle. However, when a person is employed byan employer who undertakes domestic work at individual households in the course of trade, and the person does domestic
work under direction and order of the employer, that person does not fall under the category of household employee. The
Labor Contracts Acts generally applies to all cases without any such limitation in the coverage.

6. Homeworkers
Homeworkers engage in production or processing of articles at home as entrusted by manufacturers, processors, or
distributors (wholesalers, etc.) of articles or by their contractors, and gain compensation for labor. The Labor Standards Act
does not apply to them. However, the Industrial Homework Act applies to the relationship between an entrustor and a homeworker
thereunder and has provisions to regulate the payment of wages, etc. similar to those in the Labor Standards Act and Industrial
Safety and Health Act.

9

Recruitment
I. Working Conditions in Job-Opening Information and Actual Labor Contracts
A job offerer must clearly indicate the details of the work, wages, working hours and other working conditions as jobopening information to Hello Work or employment agencies (Article 5-3, paragraph (2) of the Employment Security Act
and Article 4-2 of the Regulation for Enforcement of the Employment Security Act). When intending to recruit workers
under a discretionary work system, a job offerer also needs to clarify the fact that a discretionary work system is adopted
and the details of the applicable system and how to count actual working hours (No.3 of Public Notice of the Ministry ofLabour No.141 of 1999).
Nevertheless, there are cases where complaints or reports are submitted to the Hello Work or Labour Standards Inspection
Offices, alleging that actual working conditions are different from those indicated in recruitment slips or job ads. This typeof trouble frequently occurs as both job offerers and job seekers do not clarify or complement insufficient or incorrect
information in recruitment slips or job ads before hiring.
In Japan, labor contracts are often concluded orally instead of in writing, and this practice makes situations worse, ending
up in he-said /she-said battles.
It is expected that job-opening information in recruitment slips coincides with actual working conditions, but suchinformation is generally intended to attract job seekers and does not constitute a labor contract in itself. A labor contract isconsidered to be concluded only after a consensus on detailed working conditions is reached with an applicant throughnegotiations.
Accordingly, working conditions should be clarified in recruitment slips, etc. as mentioned above, but Article 15 of theLabor Standards Act provides that in concluding a labor contract, an employer should clearly indicate the wages, working
hours and other working conditions to the worker by separately providing a notice of working conditions and explaining therules of employment.
In addition, an employer is required to clearly indicate any change in the original working conditions as promptly as
possible after the change is determined (Article 5-3, paragraph (3) of the Employment Security Act).
It is not necessarily required to conclude a labor contract in writing, but Article 4 of the Labor Contracts Act provides
that an employer is to ensure that a worker gains an in-depth understanding of the contents of the labor contract presented
to the worker and that a worker and an employer are to confirm the contents of the labor contract: whenever possible, in
writing. It is preferable to put a contract in writing also from the perspective of preventing future trouble.
* For job offers on and after April 1, 2024, the following will be added to the working conditions that must be clearly
indicated to job seekers and other persons:• Scope of changes in the place of work and assigned work
• If there is a provision of upper limit on the total contract term or times of renewal of a fixed-term labor contract, such
upper limit

10II. Prohibition of Restrictions and Discrimination upon Recruitment and
Employment
1.

Fair Screening
What is important in screening applicants is to fairly and equally evaluate them based on whether their aptitude and ability

are sufficient for performing the relevant duties, without adding any other matters that are not attributable to applicants(*1)
or are to be left to their discretion(*2) as conditions for employment.
The Ministry of Health, Labour and Welfare is carrying out awareness-raising activities to ensure that screening methods
that may lead to employment discrimination(*3) will not be adopted.
*1 Matters that are not attributable to applicants are as follows:[i]

Matters concerning an applicant's domicile of origin and place of birth (e.g., a request for submitting a transcript
or abstract of his/her family register or (a copy of) his/her resident record wherein the domicile of origin isrecorded)[ii]

Matters concerning an applicant's family members' jobs, relationships, health conditions, medical histories, social
statuses, academic backgrounds, income, assets, etc. (e.g., family members' jobs (whether working or not), job
types, places of work, and family structure)[iii]

Matters concerning an applicant's residence (room layouts, the number of rooms, residence type, etc.) and nearby
facilities (A rough map to the residence may reveal an applicant's living environment and requesting an applicant
to draw such map may be considered as a background check.)[iv]

Matters concerning an applicant's living environment and family backgrounds*2 Conditions that are to be left to applicants' discretion are as follows:[i]

Matters concerning religion[ii]

Matters concerning supported political parties[iii]

Matters concerning life philosophy and principles in life, etc.

[iv]

Matters concerning respected persons[v]

Matters concerning ideas[vi]

Matters concerning social actions, such as experience related to student campaigns and labor union activities[vii] Matters concerning favorite newspapers, magazines, books, etc.
*3 Screening methods that may lead to employment discrimination are as follows:[i]

Implementation of a background check[ii]

Use of application documents that contain items irrelevant to applicants' aptitude and ability[iii]

Implementation of medical examinations that are not objectively and reasonably necessary at the time ofscreening

2. Prohibition of Gender Discrimination upon Recruitment and Employment
Treating workers discriminately on the basis of sex is prohibited under the Equal Employment Opportunity Act. This
Act provides that "with regard to the recruitment and employment of workers, employers must provide equal opportunities
for all persons regardless of sex" (Article 5), and that "employers must not discriminate against workers on the basis of sex"
with regard to assignment (including allocation of duties and granting of authority), promotion, demotion, and training of11

workers, a certain range of fringe benefits, change in job type and employment status of workers, and encouragement of
retirement, mandatory retirement age, dismissal, and renewal of the labor contract (Article 6).
Whether a certain treatment falls under gender discrimination is specifically indicated in the Guidelines for Employers toAppropriately Deal with the Matters Prescribed in the Provisions on the Prohibition of Gender Discrimination against
Workers (Notice of the Ministry of Health, Labour and Welfare No.614 of October 11, 2006). In particular, upon recruitment
and employment, "acts prohibited as gender discrimination and concrete examples" and "cases not prohibited as gender
discrimination" are specified as follows.
For the prohibition of discriminatory treatment on the basis of sex on other occasions, see "Chapter 11: Prohibition ofDiscrimination and Countermeasures against Harassment."[Acts Prohibited as Gender Discrimination upon Recruitment and Employment andConcrete Examples](1) Exclude either sex from targets for recruitment and employmente.g., Offer jobs using job titles expressing either sex, or stating "Men welcomed" or "Job type suited to
women"(2) Set different conditions for recruitment and employment between men and womene.g., Set conditions only for women, such as "unmarried," "have no children," or "commute from own
home"(3) Apply different methods and criteria for judging ability and quality between men and womene.g., Set different acceptance criteria between men and women for a recruitment test(4) Preferentially recruit and employ either sexe.g., Set (clarify) different numbers of new hires for men and women(5) Treat men and women differently with regard to the provision of information on recruitment andemploymente.g., Send different materials (such as corporate outlines) at different timings to men and women[Cases not Prohibited as Gender Discrimination upon Recruitment and Employment](1) Jobs in the fields of art and entertainment wherein reality in expressions is required(2) Jobs of gate keepers, security guards, etc. which need to be done by men for security reasons(3) Jobs that should be done by either sex due to religious reasons, public morals, due to the nature ofcompetition in sports, or due to the nature of the business(4) Jobs for which engagement of women is restricted or prohibited under the Labor Standards Act, and jobs of
midwives for which men cannot be employed under the Act on Public Health Nurses, Midwives andNurses(5) Cases where there are special circumstances such as where the other sex cannot exert their ability in duties
in a foreign country with different traditions and customs

12

3. Prohibition of Indirect Discrimination upon Recruitment and Employment
Indirect discrimination is conducting an act that may substantially end up discriminating women or men even under asystem that seems to be indiscriminate and ensure equal treatment for both sexes. Specifically, taking [i] a measure on thebasis of matters other than sex, [ii] which is, however, considerably disadvantageous to either sex compared with the othersex, [iii] without reasonable grounds, constitutes indirect discrimination. The Equal Employment Opportunity Act prohibits
three measures as specified by Order of the Ministry of Health, Labour and Welfare that are taken without reasonable grounds
as indirect discrimination (Article 7). The specified three measures (Article 2 of the Regulation for Enforcement of the Equal
Employment Opportunity Act) and concrete examples set forth in the abovementioned Guidelines (Notice No.614 of October
11, 2006) are shown below.
For the prohibition of discrimination on the basis of sex on other occasions, see "Chapter 11: Prohibition of Discrimination
and Countermeasures against Harassment."[Acts Prohibited as Indirect Discrimination upon Recruitment and Employment andConcrete Examples](1) Apply criteria concerning the worker's height, weight or physical strength upon recruitment andemploymente.g., Recruitment and employment of only applicants who satisfy certain criteria concerning height,
weight or physical strength, which lack reasonable grounds* A criterion requiring certain muscularity is considered to be unreasonable if regular work oftransporting cargoes no longer requires muscularity due to the introduction of machines, etc.
(2) Apply criteria concerning the worker's ability to receive reassignment that results in the relocation of
the worker's residence upon recruitment, employment, promotion or change in job typee.g., Recruitment, employment, promotion or change in job type based on a criterion that the worker
can accept reassignment accompanying the relocation of residence, which lacks reasonablegrounds*
If the company has no branches covering broad areas or has no plan to expand
branches covering broad areas, the abovementioned criterion is considered to be unreasonable.
(3) Apply criteria concerning the worker's experience of having been reassigned to other workplaces upon
promotione.g., Promotion based on a criterion that the worker has experience of reassignment, which lacks
reasonable grounds* When experience at another branch is found to be not necessarily required for performing duties
as managerial personnel at a certain branch, requiring such experience upon reassigning a worker
to the relevant branch as managerial personnel is considered to be unreasonable.

4. Prohibition of Age Discrimination upon Recruitment and Employment
An employer is prohibited to restrict workers' age upon recruitment and employment as provided in the Labor Policies
Comprehensive Promotion Act (an employer must provide workers with equal opportunities in recruitment and employment,
regardless of their age (Article 9)). However, only in cases falling under any of the following, an employer is permitted torestrict workers' age (Article 1-3, paragraph (1) of the Regulation for Enforcement of the Labor Policies Comprehensive
Promotion Act).
(1) When recruiting and employing workers below the retirement age as a party to a labor contract without a fixed term up
to the retirement age(2) When a certain age limit is prescribed under the Labor Standards Act or other laws or regulations13

(3) When recruiting and employing young workers as a party to a labor contract without a fixed term from the perspectiveof developing careers of young people through long-term service(4) When recruiting and employing workers in a specific age bracket where workers engaged in a specific type of work areremarkably scarce as a party to a labor contract without a fixed term from the perspective of handing down skills andknow-how(5) When reality in expressions is required in the fields of art and entertainment(6) When recruiting and employing workers by limiting applicants to elderly persons aged 60 or over, persons who went
into the workforce during the economic recession and are under unstable employment or have no jobs, or persons
covered under the national policy to promote employment of persons in specific age brackets (only in the case ofutilizing the national policy)

14

Labor Contracts
I. Principles of Labor Contracts
1.

Basic Principles of a Labor Contract (Article 3 of the Labor Contracts Act)○ Principle of labor-management equality (paragraph (1))==> A labor contract is to be concluded or changed between a worker and an employer by agreement on an equal basis.
○ Principle of consideration of the balance of treatment (paragraph (2))==> A labor contract is to be concluded or changed between a worker and an employer while giving consideration to thebalance of treatment according to the actual conditions of work. For clarity, this balance to be considered includes
the balance between different employment statuses.
○ Principle of consideration of the balance between work and private life (paragraph (3))==> A labor contract is to be concluded or changed between a worker and an employer while giving consideration to
work-life balance.
○ Principle of good faith (paragraph (4))==> A worker and an employer must comply with the labor contract, and must exercise their rights and perform their
obligations in good faith.
○ Principle of no abuse of rights (paragraph (5))==> When exercising their rights under a labor contract, a worker and an employer must not abuse such right.

2.

Promotion of Understanding of the Contents of a Labor Contract (Article 4 of the Labor
Contracts Act)An employer is required to ensure that a worker gains an in-depth understanding of the working conditions and contentsof the labor contract presented to the worker. A worker and an employer are required to confirm the contents of the labor
contract, whenever possible, in writing.

3.

Consideration of the Safety of a Worker (Article 5 of the Labor Contracts Act)An employer is required to give necessary consideration so that a worker can work with the safety of life and body secured.
Laws related to industrial safety and health, including the Industrial Safety and Health Act, provide for specific measuresthat employers must take, and these provisions must be complied with.

15

4.

Labor Contracts Violating the Labor Standards Act (Article 13 of the Labor Standards
Act)
Since the Labor Standards Act is a mandatory law, labor contracts which provide for working conditions which do notmeet the standards of this Act are invalid with respect to such portions. The portions which have become invalid are to be
governed by the standards of this Act.

16

II. Establishment and Change of Labor Contracts
1. Establishment (Articles 6 and 7 of the Labor Contracts Act)○ A labor contract is established by agreement between a worker and an employer on the basis that "the worker works bybeing employed by the employer" and "the employer pays wages for such work."○ An employer does not necessarily have to deliver a document stipulating the contents of the labor contract to a worker inorder to make the contract effective. Even if both parties do not agree to the details of the working conditions, the labor
contract itself can become effective.
○ If an employer has "rules of employment that provide for reasonable working conditions" and "has informed the workerof those rules of employment," then "the contents of the labor contract shall be based on the working conditions provided
by the rules of employment" because the working conditions of the rules of employment supplement the labor contract.

(1) A labor contract is established if a worker and an employer agree that "the worker works by being employed by the employer"
and "the employer pays wages for such work."(2) The working conditions of the worker are determined by agreement between the worker and the employer.
(3) If the worker is employed by the employer without detailed working conditions being provided for in the labor contract, as longas the employer has "rules of employment that provide for reasonable working conditions" and "has informed the worker ofthe rules of employment," then the worker shall be subject to the working conditions of the rules of employment.
(4) However, if the worker and the employer "agree on working conditions that are different from the contents of the rules of
employment," the agreement takes precedence over the working conditions of the rules of employment (unless the agreed
working conditions fail to meet the standards of the rules of employment).

17

2. Change (Articles 8, 9 and 10 of the Labor Contracts Act)
(1) Change in working conditions○ "A worker and an employer" may, "by agreement," "change any working conditions that constitute the contents of a labor
contract."○ Making a change to a labor contract does not necessarily require the delivery of a document describing the change to theworker.
○ An employer may not, unless an agreement has been reached with a worker, change any of the working conditions that
constitute the contents of a labor contract in a manner disadvantageous to the worker by changing the rules of
employment.
○ However, if "the employer has informed the worker of the changed rules of employment" and if "the change to the rulesof employment is reasonable," "the working conditions that constitute the contents of a labor contract are to be inaccordance with the changed rules of employment," as an exception to the principle of agreement.

(1) A worker and an employer may, by agreement, change any working conditions.
(2) When changing any working conditions by changing the rules of employment, as a general rule, the employer is not allowed tochange the working conditions in a manner disadvantageous to the worker. However, if the employer "has informed the workerof the changed rules of employment" and if "the change to the rules of employment is reasonable," the working conditions
shall be in accordance with the changed rules of employment.
(3) However, regarding "any portion of the labor contract which the worker and the employer have agreed on as being the working
conditions that are not to be changed by any change to the rules of employment," the agreement takes precedence over thechanged rules of employment (unless the agreed working conditions fail to meet the standards established by the rules of
employment).

18

(2) Judicial precedents
The Supreme Court has rendered judgments regarding the issue of whether working conditions specified in the rules of
employment may be changed in a manner disadvantageous to a worker without his/her consent. Representative judgments
are as follows.
[Supreme Court Judgment on the Shuhoku Bus Case rendered on December 25, 1968]
This is a leading case concerning disadvantageous changes to rules of employment. The Supreme Court ruled that itshould be construed that it is not permitted in principle to unilaterally deprive workers of their established rights andimpose disadvantageous working conditions by way of changing rules of employment or establishing new rules of
employment, but that as long as the provisions of the rules of employment are reasonable based on the nature thereof fromthe perspective of collectively handling and, in particular, integrally and uniformly deciding working conditions,individual workers may not reject the application of the new or changed rules of employment on the grounds of notagreeing thereto. In this manner, the Supreme Court admitted the establishment or change of the rules of employment thatunilaterally imposes disadvantageous working conditions on workers to the extent that the new or changed rules of
employment remain reasonable.
[Supreme Court Judgment on the Mikuni Hire Case rendered on July 15, 1983]
The issue disputed in this case was the reasonableness of a change intended to exclude a certain period of service fromthe total years of service, based on which retirement allowances are calculated. The Supreme Court ruled that the change
was to unilaterally impose the disadvantage that the period of service on and after August 1 of the year should be excluded
from the total years of service, based on which retirement allowances are calculated, but the appellant has not presented
any compensatory working conditions and therefore that the relevant change cannot be construed as reasonable. Reductionof retirement allowances without any compensatory measures was thus found to be invalid.
[Supreme Court Judgment on the Omagari Agricultural Cooperative Case rendered on February 16, 1988]
Regarding disadvantageous changes in wages and retirement allowances, etc., the Supreme Court ruled that a changeof rules of employment or the establishment of new rules of employment that cause a substantial disadvantage in workers'
working conditions, such as significant rights concerning wages and retirement allowances, etc., in particular, should beconstrued to be effective only when the relevant changed or newly established rules are highly necessary and it isreasonable to have the workers legally accept and endure such disadvantage.
[Supreme Court Judgment on the Takeda System Case rendered on November 25, 1983]
This is a case wherein the rules concerning menstrual leave were unilaterally changed without obtaining consent fromthe labor union. The Supreme Court presented the criteria for judging the reasonableness of disadvantageous changes tothe rules of employment, stating that the reasonableness of a change needs to be considered based on both the details of
the change and the necessity thereof, and it is also necessary to comprehensively take into account the level of thedisadvantage for the workers caused by the change, the improvement in wages made together with the change, and whether
the change was necessary for the purpose of maintaining internal discipline and ensuring fair treatment among the workers
to avoid abuse of the menstrual leave system under the former rules, as well as the developments of negotiations with thelabor union, measures for other workers, adjustments with affiliated companies, and general circumstances concerning
the menstrual leave system in Japan.

19[Supreme Court Judgment on the Daishi Bank Case rendered on February 28, 1997]
In this case, the issue was whether it should be found reasonable to change the rules of employment to extend theretirement age from 55 to 60 but to reduce the wage from the age of 55 onward to 60% of that of the age of 54. The
Supreme Court ruled that the reasonableness of the change should be judged by comprehensively considering the level ofthe disadvantage for the workers caused by the change, the details and the level of the necessity of the change on theemployer's side, the appropriateness of the changed rules of employment, compensatory measures or other related
improvement in working conditions, the developments of negotiations with the labor union, measures for other workers,
and general circumstances concerning similar affairs in Japan. In conclusion, the Supreme Court judged the relevantchange of the rules of employment as being reasonable.
[Supreme Court Judgment on the Michinoku Bank Case rendered on September 7, 2000]
In this case, the bank changed the rules of employment to improve working conditions for many of its workers, butsome lost their managerial positions and their wages were reduced, and the reasonableness of the change to the rules of
employment was disputed. While following the construction shown in the Daishi Bank Case, the Supreme Court
concluded that the relevant change cannot be considered to be reasonable on the following grounds.
The change in the wage system in this case should be considered to result in having only workers in specific positions
bear burden of reducing the total wage cost in a short term, and the burden causes a significant disadvantage to theseworkers, who would reach their retirement age without receiving any benefits of the improvement in working conditions
solely targeting mid-career workers. When revising a system in this manner through a change of the rules of employment,
appropriate relief measures, such as transitional measures to mitigate disadvantage, should be taken for those workers onwhom disadvantage would be imposed unilaterally. Only having workers accept significant disadvantage without taking
relief measures should be construed as lacking reasonableness.

20

(3)

Disadvantageous changes of working conditions through revision of a collective agreement
Normative effects of a collective agreement arise even when working conditions are changed in a disadvantageousmanner through the collective agreement. When a new collective agreement with disadvantageous changes of working
conditions is concluded and put into force, the level of the working conditions of the relevant labor union member is changed
from that defined in the former agreement to that defined in the new agreement. However, specific rights already established(such as unpaid wage after the due date) cannot be changed disadvantageously by retroactively applying a collective
agreement concluded afterwards.
Nevertheless, if a collective agreement is concluded in a manner deviating from the original purpose of a labor union,such as with the aim of treating specific members or certain members especially disadvantageously, there is a case where
normative effects of the collective agreement may be denied for the relevant labor union members.
In the Asahi Fire and Marine Insurance (Ishido) Case (Supreme Court Judgment on March 27, 1997), regarding acollective agreement to disadvantageously change the retirement age and calculation method of retirement allowances, it
was ruled that the caused disadvantage is not small but the collective agreement cannot be found to have been concluded ina manner deviating from the original purpose of a labor union, such as with the aim of treating specific members or certain
members especially disadvantageously, in light of the developments leading to the conclusion of the agreement, the financial
conditions of the company at that time, and the reasonableness of the entirety of the standards defined in the agreement. The
Supreme Court concluded that there are no grounds to deny the normative effects of the agreement.
On the other hand, there are judicial precedents ruling a disadvantageous change to be void, such as cases regarding [i] acollective agreement against the mandatory statute, [ii] a collective agreement against public policy (Supreme Court
Judgment on the Nihon Schering Case rendered on December 14, 1989), [iii] a collective agreement with a defect in theunion's authority to conclude an agreement (Tokyo High Court Judgment on the Nakane Seisakusho Case rendered on July26, 2000), and [iv] a collective agreement resulting in significant changes unreasonably disadvantageous to some union
members (Hiroshima High Court Judgment on the Tomo Tetsudo Case rendered on April 15, 2004). However, in most cases,
the court respects agreements between labor and management from the perspective of labor-management autonomy andadmits disadvantageous changes of working conditions through the conclusion of collective agreements.

(4)

Disadvantageous changes of working conditions through an individual agreement in the absence of a collective
agreement or rules of employment
In the absence of a collective agreement or rules of employment, a worker's agreement to disadvantageous changes ofhis/her working conditions is deemed to be effective only when reasonable grounds are objectively found to conclude thatthe agreement is based on the worker's free will.
As a representative judicial precedent, there is the Tokyo High Court Judgment on the Kosei-kai Mitsui Futo Case
(December 27, 2000), a case regarding workers' manifestation of their will to agree to the wage reduction and deduction.
Based on the idea that an individual agreement is deemed to be effective only when reasonable grounds are objectively foundto conclude that the agreement was concluded based on the worker's free will, the court ruled that it may be possible to admitthat the plaintiffs (workers) have implicitly agreed to the wage reduction on appearance but in substance they cannot be
deemed to have agreed to the wage reduction based on their free will in light of the following facts: the plaintiffs have notreceived sufficient explanations on the grounds for the wage reduction; the company cannot be found to have explicitly
requested the manifestation of the plaintiffs' will regarding whether or not to agree to the wage reduction; the plaintiffs
refrained from presenting objections due to being afraid of dismissal but stated later that they were not happy with the wage
deduction; and the disadvantage due to the wage reduction would not be small for the plaintiffs. In conclusion, the court
ruled that the disadvantageous changes of working conditions in this case are illegal and void.

21

III. Contracts with a Fixed Term (Fixed-Term Labor Contracts)
As a fixed-term labor contract binds the worker and the employer for the relevant term, neither party is allowed toterminate the labor contract only for its own reasons without special circumstances. A worker who has concluded a fixedterm labor contract(*) may, notwithstanding the provisions of Article 628 of the Civil Code, retire at any time by notifying
his/her employer on or after the day on which one year has passed since the first day of the term of his/her labor contract,until the measures stipulated in Article 3 of the Supplementary Provisions of the Act for Partially Amending the Labor
Standards Act (Act No. 104 of 2003) are taken (Article 137 of the Labor Standards Act).
* A fixed-term labor contract here excludes a labor contract specifying a term required for the completion of a certain
business and is limited to a labor contract for a term exceeding one year. In addition, workers who have advanced expert
knowledge, etc. and workers aged 60 or older are excluded here.
The Labor Standards Act limits the terms of fixed-term labor contracts as follows (Article 14 of the Labor Standards Act)

22

The Ministry of Health, Labour and Welfare provides standards of measures that employers should take toprevent labor-management troubles at the time of conclusion and expiration of fixed-term labor contracts.

Standards for Conclusion, Renewal and Non-Renewal of Fixed-Term Labor Contracts(Public Notice No.357 of the Ministry of Health, Labour and Welfare of October 22, 2003)(Public Notice No.12 of the Ministry of Health, Labour and Welfare of January 23, 2008)(Public Notice No.551 of the Ministry of Health, Labour and Welfare of October 26, 2012)(Advance Notice of Non-Renewal of Employment)
Article 1 If an employer does not renew a fixed-term labor contract with a worker (limited to aworker who has had the fixed-term labor contract renewed at least three times before or has
continuously worked for the employer for more than one year from the date of employment, andexcluding a fixed-term labor contract in which it is made clear that the contract will not be
renewed; hereinafter, the same applies in paragraph 2 of the following Article), the employer must
give the worker advance notice of non-renewal at least 30 days prior to the expiration date of thelabor contract.
(Clarification of Reasons for Non-Renewal of Employment)
Article 2 (1) In the case referred to in the preceding Article, if the worker requests a certificate of thereasons for non-renewal, the employer must deliver such a certificate to the worker without delay.
(2) In the event that a fixed-term labor contract is not renewed, if the worker requests a certificate of
the reasons for non-renewal, the employer must deliver such a certificate to the worker without
delay.
(Consideration Regarding Contract Terms)
Article 3 If an employer renews a fixed-term labor contract with a worker (limited to a worker who
has had the fixed-term labor contract renewed at least once and has continuously worked for theemployer for more than one year from the date of employment), the employer must endeavor toextend the contract term as long as possible according to the actual conditions of the contract andthe request of the worker.

23

* The above-mentioned Standards will be revised as described below on and after April 1, 2024.

Standards for Conclusion, Renewal, Non-Renewal, etc. of Fixed-Term Labor Contracts(Public Notice No.357 of the Ministry of Health, Labour and Welfare of October 22, 2003)(Public Notice No.12 of the Ministry of Health, Labour and Welfare of January 23, 2008)(Public Notice No.551 of the Ministry of Health, Labour and Welfare of October 26, 2012)(Public Notice No.114 of the Ministry of Health, Labour and Welfare of March 30, 2023)(Explanation about Reasons for Fixing an Upper Limit for Renewal in Revising a Fixed-Term Labor
Contract)
Article 1 If, after the execution of a labor contract with a fixed term (hereinafter referred to as a
“Fixed-term Labor Contract”), an employer fixes or reduces an upper limit of the total contract
term (which refers to the total contract term set forth in Article 18, paragraph (1) of the Labor
Contracts Act) or the times of renewal of a Fixed-term Labor Contract) in amending or renewing
the Fixed-term Labor Contract, the employer must explain the reasons to the relevant worker.
(Advance Notice of Non-Renewal of Employment)
Article 2 If an employer does not renew a Fixed-term Labor Contract with a worker (limited to aworker who has had the fixed-term labor contract renewed at least three times or has continuously
worked for the employer for more than one year from the date of employment, but excluding acontract of which non-renewal is clearly specified in advance; the same applies in paragraph (2)of the following Article), the employer must give provide at least 30 days’ advance notice.
(Clarification of Reasons for Non-Renewal of Employment)
Article 3 (1) In the case referred to in the preceding Article, if the worker requests a certificate of thereasons for non-renewal, the employer must deliver such a certificate to the worker without delay.
(2) In the event that a Fixed-term Labor Contract is not renewed, if the worker requests a certificateof the reasons for non-renewal, the employer must deliver such a certificate to the worker without
delay.
(Consideration Regarding Contract Terms)
Article 4 If an employer renews a Fixed-term Labor Contract with a worker (limited to a worker
who has had the fixed-term labor contract renewed at least once and has continuously worked forthe employer for more than one year from the date of employment), the employer must endeavor
to extend the contract term as long as possible according to the actual conditions of the contract
and the request of the worker.
(Explanation about Working Conditions after Conversion to a Fixed-term Contract)
Article 5 If an employer clearly indicates the particulars prescribed in Article 5, paragraph (5) of theOrdinance for Enforcement of the Labor Standards Act to a worker pursuant to the provisions ofArticle 15, paragraph (1) of the Labor Standards Act, the employer must endeavor to explain theparticulars to which consideration is given to the balance based on to the actual working conditions of
employment, taking into account the purpose of the provisions of Article 3, paragraph (2) of the Labor
Contracts Act to the relevant worker.

24

○ The Labor Contracts Act contains the following rules on fixed-term labor contracts to ensure proper use of these contracts.

I. Dismissal during the Contract Term (Article 17, paragraph (1) of the Labor Contracts Act)
During the term of a fixed-term labor contract, an employer may not dismiss a worker
unless there are unavoidable circumstances Whether an employer has unavoidable
circumstances to dismiss a worker should be determined on a case-by-case basis. However,since a contract term is determined by agreement between a worker and an employer andshould be complied with, cases in which an employer is considered to have "unavoidable
circumstances" are to be limited more narrowly than cases other than those in which dismissal"lacks objectively reasonable grounds and is not considered to be appropriate in general social
terms" in accordance with the open-ended labor contract.
Even if a worker and an employer have agreed that the employer is allowed to dismiss theworker for a certain reason during the contract term, such reason is not immediately
considered to constitute "unavoidable circumstances." Whether an employer has "unavoidable
circumstances" for actual dismissal is determined on a case-by-case basis.
If an employer dismisses a worker during the term of a fixed-term labor contract, suchdismissal can be justified by Article 628 of the Civil Code. An employer bears the burden ofproving facts showing that there are "unavoidable circumstances."
II. Conversion to an open-ended labor contract (Article 18 of the Labor Contracts Act)
If a fixed-term labor contract is repeatedly renewed over a period exceeding five years,
this fixed-term labor contract can be converted into an open-ended labor contract if theworker makes a request. (*)* Special provisions are provided respectively for fixed-term workers, such as researchers andteachers, etc. of universities or research and development agencies or those with advanced
expert knowledge engaged in work scheduled to be completed in a certain period of timeexceeding five years, and for fixed-term workers who are continuously employed after reaching
the retirement age.

III. Legal principle of non-renewal of employment (Article 19 of the same Act)
The Act has incorporated the doctrine concerning non-renewal of employment establishedby a judgment of the Supreme Court.
If an employer's non-renewal of a fixed-term labor contract objectively lacks reasonablegrounds and is not found to be appropriate in general social terms, such non-renewal is notallowed. In such a case, the employer is deemed to have accepted the worker's offer for
renewal or conclusion of a fixed-term labor contract with the same working conditions as
those of the previous fixed-term labor contract, and a new fixed-term labor contract comes
into effect with the same working conditions.

25

IV. Clear Indication of Working Conditions
When an employer employs a worker, the employer is required to clearly indicate wages, working hours and other working
conditions to the worker to the relevant worker by delivering a document containing such working conditions to the worker orby other similar means.
In the event that the clearly indicated working conditions are different from the actual working conditions, the worker may
immediately cancel the labor contract (Article 15 of the Labor Standards Act).
*

Under Article 5 of the Regulation for Enforcement of the Labor Standards Act (Order of the Ministry of Health andWelfare No.23 of 1947), the method of clearly indicating working conditions is defined to be through the delivery of a document,
in principle, but if a worker requests either of the following methods, that method may be employed.
[i]A method of sending a document using facsimile[ii] A method of transmission by electronic mail or other telecommunication (which means the telecommunicationprescribed in Article 2, item (i) of the Telecommunications Business Act (Act No. 86 of 1984) used to communicate
information to a specified recipient; hereinafter referred to as an “electronic mail or other telecommunication”)(limited, however, to any method that allows the relevant worker to prepare a document by outputting what is recordedin such email or other telecommunication).

Working conditions that must
be clearly indicated if theemployer requires

Working conditions that must be clearly
indicated without exception< Working conditions that must be clearly indicated >Matters to be clarified throughthe delivery of a document, etc.
(1) Term of Labor Contracts(2) Standards for renewing a fixed-term labor contract(3) Place of work and assigned work(4) Starting and finishing times, whether work exceeding prescribedworking hours (such as early attendance and overtime work) is
required, rest periods, days off, leave, and changes in shifts in cases
where workers work in two or more shifts(5) Methods of determining, calculating and paying wages and the dates for closing
accounts for wages and for payment of wages(6) Retirement (including grounds for dismissal)(7) Wage raises(8) Scope of workers to those the provisions concerning retirement allowances apply, methodsof determining, calculating and paying retirement allowances and dates for payment of
retirement allowances(9) Extraordinary wages, bonuses, etc. and minimum wages(10) Meal expenses, work supply expenses and other expenses to be borne by the worker(11) Safety and health(12) Vocational training(13) Accident compensation and support for off-the-job injuries and diseases(14) Commendations and sanctions(15) Administrative leave* When an employer concludes a labor contract on or after April 1, 2024, the employer is also required to clearly indicate thefollowing working conditions through the delivery of a document.
• Scope of changes in the place of work and assigned work
• If there is a provision of upper limit on the total contract term or times of renewal of a fixed-term labor contract, such upper
limit• If an employer concludes a fixed-term labor contract during which term a worker can apply for conversion to an open-ended
contract under Article 18, paragraph (1) of the Labor Contracts Act, matters relating to such application and the working
conditions after the conversion to an open-ended contract26

○Working conditions to be clearly indicated in writing under the Part-Time and Fixed-Term Workers Act (Article
6 of the Part-Time and Fixed-Term Workers Act and Article 2 of the Regulation for Enforcement of the Part-Timeand Fixed-Term Workers Act)
When an employer employs a part-time or fixed-term worker, the employer is required to clearly indicate the working
conditions listed below to the part-time or fixed-term worker promptly by delivering a document to the worker or by othersimilar means, in addition to the working conditions listed above:• Whether wages are increased or not within the term of the labor contract• Whether retirement allowances are paid or not• Whether bonuses are granted or not• Consultation service related to improvement, etc. of employment management of part-time and fixed-term workers

27

(For Ordinary Workers Continuously Employed for a Fixed Term)

Notice of Working Conditions
Date:
Mr./Ms.

Contract
Term

Name and Address of the Workplace
Name of the Employer
Not fixed/Fixed (Fromto)* Fill in the section below if the contract term is “Fixed.”
1 Renewal of the contract[Automatically renewed; Can be renewed; Not renewed; Other ()]
2 Factors for deciding whether to renew the contract• Workload at the expiration of the contract term • Work performance and attitude• Competency • Business condition of the company • Progress of the assigned work
• Others ()[For a person eligible for the special provisions under the Act on Special Measures Concerning Fixed-term Employees with
Expert Knowledge and Skills
Period without the right to apply for shift to a non-fixed term status:
I: (advanced expert); II: (elderly person after retirement)
I
Period from the commencement to the completion of specified fixed-term operations ((up to ten years))
II Period of being employed continuously after retirement

years andmonthsPlace ofWork
Assigned
Work
Starting and
FinishingTimes, Rest
Period andChange in
Shift
Work(circle
theapplicable
number from
(1) to (5)),
andOvertime
Work[For a person eligible for the special provisions under the Act on Special Measures
Concerning Fixed-term Employees with Expert Knowledge and Skills]• Specified Fixed-term Operations (: Fromto)

1 Starting and finishing times(1)Starting time () Finishing time ()(If any of the following systems applies to the worker)(2) Variable working hours system, etc.: Variable working hours system or work shift system on a () basis with a combination of the following working hours
Starting time () Finishing time () (Applicable days:)
Starting time () Finishing time () (Applicable days:)
Starting time () Finishing time () (Applicable days:)(3) Flextime: Starting and finishing times left to the worker’s discretion(Exception: Flexible time (Starting time)From
to(Finishing time)
From
toCore timeFromto)(4)Deemed working hours outside the workplace: Starting time () Finishing time ()(5) Discretionary work system: Starting and finishing times left to the worker’s discretion with a basic
starting time at () and a basic finishing time at ()○ For more details, refer to Articles to , Articles to and Articles to of the Rules of
Employment.
2 Rest period: ( ) minutes
3 Overtime work (Required/Not required)

Days Off• Regular days off: Every () (day of the week), public holidays and others ()• Irregular days off:days per week or month and others ()• In case of a one-year variable working hours system:
days per year
○ For more details, refer to Articles to and Articles to of the Rules of Employment.

Leave

1 Annual paid leave: Working continuously for at least six months
days
Annual paid leave for working continuously for less than six months(Available/Not available)--> days if the worker has worked at least months
Annual paid leave on an hourly basis (Available/Not available)
2 Substitute leave (Available/Not available)
3 Other leave: Paid () Unpaid ()○ For more details, refer to Articles to and Articles to of the Rules of Employment.
(Continued on the next page)

28

Wages

1 Basic wage(a) Monthly wage (yen) (b) Daily wage (yen)(c) Hourly wage (yen)(d) Piecework wage (Basic wage:
yen Guaranteed wage:yen)(e) Other wages (yen)(f) Wage classification and other wage-related matters stipulated in the Rules of
Employment

2 Amounts or calculation formulas of allowances(a) (allowance
yen / Calculation formula:)(b) (allowance
yen / Calculation formula:)(c) (allowance
yen / Calculation formula:)(d) (allowance
yen / Calculation formula:)
3 Increased wage rates for overtime work, work on days off and night work(a) Overtime work: Exceeding the statutory working hours
Within 60 hours per month ( ) %Over 60 hours per month ( ) %Exceeding the predetermined working hours ( ) %(b) Work on a day off: Statutory holiday ( ) % Non-statutory holiday ( ) %(c) Night work: ( ) %4 Cutoff day: ( ): th day of every month ( ): th day of every month
5 Pay day: ( ): th day of every month ( ): th day of every month
6 Payment method: ()
7 Wage deduction under a labor-management agreement (Not applicable/Applicable ())
8 Wage increase (Available (Time, amount and other details:)/Not available)
9 Bonus (Available (Time, amount and other details:)/Not available)
10 Retirement allowance (Available (Time, amount and other details:)/Not available)
Retirement

Others ()

1 Mandatory retirement system (Applicable ( years old)/Not applicable)
2 Continued employment system (Applicable (until years old)/Not applicable)
3 Voluntary retirement procedure (Notification required at least days prior to retirement)
4 Grounds and procedure for dismissal○ For more details, refer to Articles to and Articles to of the Rules of Employment.
• Enrollment in social insurance schemes (employees’ pension insurance, health insurance, employees’
pension fund and other schemes ())• Applicability of employment insurance (Applicable/Not applicable)• Consultation service on employment management improvements [Department: Responsible personnel:(contact information: )]Department: Responsible personnel: (contact information:)• Others* If the contract term is "Fixed"
Under Article 18 of the Labor Contracts Act, if the total term of a fixed-term labor contract(which becomes effective on or after April 1, 2013) exceeds five years, the labor contract isconverted into a labor contract without a fixed term on the day following the day of expiration of
the relevant fixed-term labor contract if the worker makes a request by that expiration date. Whenthe special provisions under the Act on Special Measures Concerning Fixed-term Employees with
Expert Knowledge and Skills are applicable, this five-year period is to be as indicated in the columnof "Contract Term" on this notice.

29

[Notes]
1. A Notice of Working Conditions is to be prepared by a person who has the authority to decide theworker's working conditions and is to be delivered to the relevant worker.
The Notice may be delivered in writing, and upon a request from a worker, means of clarifying thecontent through a facsimile transmission or transmission using telecommunications for transmitting
information by specifying the recipient of emails, etc. (limited to a method enabling documentation by
outputting data) may be employed.
2. When selecting an applicable one from multiple options, circle the relevant option.
3. Information on the matters other than those enclosed with a broken line or a double line must be clearly
documented and delivered to the worker under the Labor Standards Act. Additionally, if systems are put
in place regarding the matters concerning retirement allowances, extraordinary wages, etc., expenses tobe borne by workers, safety and health, vocational training, accident compensation and support for offthe-job injuries and diseases, commendations and sanctions, and administrative leave, these matters mustalso be clearly presented to the worker orally or in writing.
4. A contract term should be within the scope specified by the Labor Standards Act.
In the case of a fixed-term contract, whether or not to renew the contract and the criteria for renewal
or non-renewal (multiple answers) should also be clarified.
(Reference) Under Article 18, paragraph (1) of the Labor Contracts Act, if the total term of a fixedterm labor contract exceeds five years, the labor contract is converted into a labor contract
without a fixed term upon a request of the worker. This right to file a request may be
exercised until the expiration date of the original contract.
5. Place of work and assigned work may be the ones immediately after the employment, but it is also
permitted to comprehensively indicate all places and works to which the worker may possibly be
assigned in the future.
In the case of a person eligible for the special provisions under the Act on Special Measures
Concerning Fixed-term Employees with Expert Knowledge and Skills (advanced expert), the details
and commencement and completion dates of the specified fixed-term operations (operations requiringexpert knowledge that are scheduled to be completed within a certain period of time exceeding five
years) stated in the Type-1 Plan approved under the same Act should also be stated. The commencement
and completion dates of the specified fixed-term operations are not necessarily the same as the first andlast dates of the fixed-term contract stated in the "Contract Term" section.
6. Specific conditions applied to the worker should be clearly indicated in the "Starting and Finishing
Times, Rest Period and Change in Shift Work, and Overtime Work" section. When any of the variable
working hours system, flextime system, discretionary work system, etc. is applied, the following should
be noted.
• Variable working hours system: The applicable type (on a yearly basis, a monthly basis, etc.) should
be stated. If a work shift system is not applied, the part "or work shift system" should
be deleted with a double line.
• Flextime system: If a flexible time or core time is specified, the starting time and finishing time of that
period should be stated, and if not, the part in the parentheses should be deletedwith a double line.
• Deemed working hours outside the workplace: The prescribed starting time and finishing time should
be stated.
• Discretionary work system: If basic starting and finishing times are not specified, the part "with a basic
starting time at ( ) and a basic finishing time at ( )" should be deleted with a double
line.
• Work shift system: Starting and finishing times for each shift should be stated. If a variable working
hours system is not applied, the parts "Variable working hours system or" and "on a ( ) basis"should be deleted with a double line.
7. In the "Days Off" section, the relevant days of the week or dates of regular days off should be stated.
8. Annual paid leave is granted to a worker working continuously for at least six months with theattendance rate exceeding 80% for that period, and the number of days granted as annual paid leaveshould be stated in the "Leave" section. Annual paid leave on an hourly basis is granted on an hourly
basis under a labor-management agreement. Whether such system exists or not should be stated.
Substitute leave is granted under a labor-management agreement when a worker has worked overtime
in excess of 60 hours per month, in lieu of the payment of premium wages at a statutory raised premium
wage rate. Whether such system exists or not should be stated (excluding small and medium-sizedbusiness operators).
For other types of leave, specific types of paid or unpaid leave and the number of days (period, etc.)
should be stated separately.

30

9. Regarding 6. to 8. above, if the matters to be stated are too numerous, regarding the matters except for
those on overtime work, it suffices to indicate the starting and finishing times and the policy on days off
for each type of jobs and to comprehensively list up the provisions of the rules of employment applicableto the relevant worker.
10. In the "Wages" section, specific amounts of basic wage, etc. should be stated. However, if the amount
can be identified based on the wage classification, etc. stipulated in the rules of employment, it suffices
to state the relevant classification.
• The minimum statutory raised premium wage rate is 25% for overtime work exceeding the statutory
working hours, 50% for overtime work exceeding the statutory working hours over 60 hours permonth (excluding small and medium-sized business operators), 35% for work on a statutory holiday,
25% for night work, 50% for overtime work exceeding the statutory working hours at night, 75% for
overtime work exceeding the statutory working hours over 60 hours per month and at night (excluding
small and medium-sized business operators), and at least 60% for work on a statutory day off at night.
• The matters enclosed with a broken line should preferably be stated if they are established as a system.
11. In the "Retirement" section, grounds and procedures for separation from employment and grounds for
dismissal should be stated concretely. In this case, if the matters to be stated are too numerous, it suffices
to comprehensively list up the provisions of the rules of employment applicable to the relevant worker.
(Reference) When a mandatory retirement system is adopted, the retirement age must not be below 60.
When the retirement age is set below 65, any of the following three measures (Measures for
Securing Employment for Elderly Persons) needs to be taken for the purpose of securing stable
employment up to the age of 65:(i) Raising the mandatory retirement age; (ii) Introducing a system to continue employment
after retirement; (iii) Abolishing the provision on mandatory retirement
12. In the "Miscellaneous" section, enrollment in social insurance schemes, applicability of employment
insurance, and the matters concerning expenses to be borne by workers, safety and health, vocational
training, accident compensation and support for off-the-job injuries and diseases, commendations andsanctions, and administrative leave should preferably be stated if they are established as a system. In the"Consultation service on employment management improvements" section, information concerningwhere to accept consultations, including complaints from fixed-term workers, should be entered.
13. When working conditions are to be explained by clarifying the parts of the rules of employment
applicable to the relevant worker for each of the above matters and provide him/her with the rules of
employment, it is not required to concretely fill in this form.
* This is only a model format and need not necessarily be followed, depending on the method of
deciding working conditions.

31

* Form for a labor contract concluded on and after April 1, 2024 (For Ordinary Workers Continuously Employed for a
Fixed Term)

Notice of Working Conditions
Date:
Mr./Ms.
Contract Term

Name and Address of the Workplace
Name of the Employer
Not fixed/Fixed (Fromto)* Fill in the section below if the contract term is “Fixed.”
1 Renewal of the contract[Automatically renewed; Can be renewed; Not renewed; Other ()]
2 Factors for deciding whether to renew the contract• Workload at the expiration of the contract term • Work performance and attitude• Competency • Business condition of the company • Progress of the assigned work
• Others ()
3 Renewal of upper limit (Not renewed; Renewed (up to
times/total contract term: Up toyears))[When a worker whose total contract term of a fixed-term labor contract concluded with the same employer specified
in the Labor Contracts Act exceeds five years]
When a worker applies for conclusion of a labor contract without a fixed term (open-ended labor contract) tothe employer during the contract term, the employer may convert the relevant labor contract to an open-endedlabor contract from the day following the end of the term of the original labor contract (date). In this case, changesof the working conditions from the original labor contract (Not changed; Changed (see attached)[For a person eligible for the special provisions under the Act on Special Measures Concerning Fixed-term
Employees with Expert Knowledge and Skills
Period without the right to apply for shift to a non-fixed term status:
I: (advanced expert); II: (elderly person after retirement)
I

Place of Work
Assigned
Work
Starting and
FinishingTimes, Rest
Period andChange in
Shift
Work(circle
the applicable
number from
(1) to (5)),
and Overtime
Work

Days Off

Leave

Period from the commencement to the completion of specified fixed-term operations ((up to ten years))

years andmonthsII Period of being employed continuously after retirement(Immediately after employment)(Scope of changes)(Immediately after employment)(Scope of changes)[For a person eligible for the special provisions under the Act on Special Measures
Concerning Fixed-term Employees with Expert Knowledge and Skills]• Specified Fixed-term Operations (: Fromto)
1 Starting and finishing times(1)Starting time () Finishing time ()(If any of the following systems applies to the worker)(2) Variable working hours system, etc.: Variable working hours system or work shift system on a () basiswith a combination of the following working hours
Starting time () Finishing time () (Applicable days:)
Starting time () Finishing time () (Applicable days:)
Starting time () Finishing time () (Applicable days:)(3) Flextime: Starting and finishing times left to the worker’s discretion(Exception: Flexible time
(Starting time)From
to(Finishing time)
From
toCore timeFromto)(4)Deemed working hours outside the workplace: Starting time () Finishing time ()(5) Discretionary work system: Starting and finishing times left to the worker’s discretion with a basic startingtime at () and a basic finishing time at ()○ For more details, refer to Articles
to, Articles
toand Articles
to of the Rules of Employment.
2 Rest period: () minutes
3 Overtime work (Required/Not required)
Regular days off: Every () (day of the week), public holidays and others ()
Irregular days off:days per week or month and others ()
In case of a one-year variable working hours system:
days per year
○ For more details, refer to Articles
toand Articles
to of the Rules of Employment.
1 Annual paid leave: Working continuously for at least six months
days
Annual paid leave for working continuously for less than six months (Available/Not
available)--> days if the worker has worked at least
monthsAnnual paid leave on an hourly basis (Available/Not available)
2 Substitute leave (Available/Not available)

3 Other leave: Paid (○ For more details, refer to Articles

to) Unpaid (and Articles to(Continued on the next page)32)
of the Rules of Employment.

Wages

1 Basic wage(a) Monthly wage (yen) (b) Daily wage (yen)(c) Hourly wage (yen)(d) Piecework wage (Basic wage:
yen Guaranteed wage:yen)(e) Other wages (yen)(f) Wage classification and other wage-related matters stipulated in the Rules of Employment

2 Amounts or calculation formulas of allowances(a) (allowance yen / Calculation formula:)(b) (allowance yen / Calculation formula:)(c) (allowance yen / Calculation formula:)(d) (allowance yen / Calculation formula:)
3 Increased wage rates for overtime work, work on days off and night work(a) Overtime work: Exceeding the statutory working hours
Within 60 hours per month (Over 60 hours per month ( ) %Exceeding the predetermined working hours ( ) %(b) Work on a day off: Statutory holiday ( ) % Non-statutory holiday ( ) %(c) Night work: ( ) %4 Cutoff day: ( ):th day of every month( ):th day of every month
5 Pay day: ( ):th day of every month( ):th day of every month
6 Payment method: ())%

7 Wage deduction under a labor-management agreement (Not applicable/Applicable ())
8 Wage increase (Available (Time, amount and other details:)/Not available)
9 Bonus (Available (Time, amount and other details:)/Not available)
10 Retirement allowance (Available (Time, amount and other details:)/Not available)
Retirement

1 Mandatory retirement system (Applicable (years old)/Not applicable)
2 Continued employment system (Applicable (until
years old)/Not applicable)
3 Measures for start-up support, etc. (Applicable (until years old for business engagement, social contribution
projects)/Not applicable)
4 Procedure for voluntary retirement (notice to be given at least days prior to retirement)
5 Grounds and procedure for dismissal○ For more details, refer to Articles

Others ( )toand Articles

toof the Rules of Employment.

• Enrollment in social insurance schemes (employees’ pension insurance, health insurance, and other schemes ())
Applicability of employment insurance (Applicable/Not applicable)• Smaller Enterprise Retirement Allowance Mutual Aid Scheme(Participated/Not participated) (*Only applicable to smaller enterprises)• Corporate pension schemes (Applicable (name of the scheme))/Not applicable)• Consultation service on employment management improvements
Department: Responsible personnel: (contact information:)• Others ()* If the contract term is "Fixed"

Under Article 18 of the Labor Contracts Act, if the total term of a fixed-term labor contract (whichbecomes effective on or after April 1, 2013) exceeds five years, the labor contract is converted into a labor
contract without a fixed term on the day following the day of expiration of the relevant fixed-term labor
contract if the worker makes a request by that expiration date. Notwithstanding the above, for a person
eligible for the special provisions under the Act on Special Measures Concerning Fixed-term Employeeswith Expert Knowledge and Skills, the accrual of the right to apply for shift to a non-fixed term status is
exceptionally as clearly indicated in [For a person eligible for the special provisions under the Act on Special
Measures Concerning Fixed-term Employees with Expert Knowledge and Skills] of “Contract Term” of thisNotice.
For other matters, the company's rules of employment apply. Places and methods in which the Rules of Employment can be checked ()* Delivery of this Notice also serves as the clear indication of the working conditions under Article 15 of the Labor Standards Act
and the delivery of documents under Article 6 of the Act on Improvement of Personnel Management and Conversion of
Employment Status for Part-Time Workers and Fixed-Term Workers (Part-Time and Fixed-Term Workers Act).
* A Notice of Working Conditions should preferably be preserved to prevent future labor-management disputes.

33

[Notes]
1. A Notice of Working Conditions is to be prepared by a person who has the authority to decide the worker's working
conditions and is to be delivered to the relevant worker.
The Notice may be delivered in writing, and upon a request from a worker, means of clarifying the content through afacsimile transmission or transmission using telecommunications for transmitting information by specifying the recipientof emails, etc. (limited to a method enabling documentation by outputting data) may be employed.
2. When selecting an applicable one from multiple options, circle the relevant option.
3. Information on the matters other than those underscored, and enclosed with a broken line or a double line must be clearly
indicated and delivered in writing to the (see 1. above) under the Labor Standards Act. Additionally, if systems are put inplace regarding the matters concerning retirement allowances, extraordinary wages, etc., expenses to be borne by workers,
safety and health, vocational training, accident compensation and support for off-the-job injuries and diseases,
commendations and sanctions, and administrative leave, these matters must also be clearly presented to the worker orally,in writing or otherwise.
Information on the matters hatched is required to be clearly indicated and delivered in writing to part-time workers andfixed-term workers under the Part-Time and Fixed-Term Workers Act.
4. A contract term should be within the scope specified by the Labor Standards Act.
In the case of a fixed-term contract, whether or not to renew the contract, the criteria for renewal or non-renewal(multiple answers allowed), and whether or not to renew upper limit should also be clarified.
When a worker whose total contract term of a fixed-term labor contract concluded with the same employer specified
in the Labor Contracts Act exceeds five years, an opportunity to request conversion to a fixed-term contract and the working
conditions after the conversion should be clearly indicated. In clearly indicating the working conditions after conversion
to a fixed-term contract, whether or not to change the working conditions from those under the original contract (including
details of changes, if any) should be clearly indicated or details of the matters to be clearly indicated should be clearly
indicated, irrespective of whether they are changed.
(Reference) Under Article 18, paragraph (1) of the Labor Contracts Act, if the total term of a fixed-term labor contract
exceeds five years, the labor contract is converted into a labor contract without a fixed term upon a requestof the worker. This right to file a request may be exercised until the expiration date of the original contract.
5. In the “place of work” and “assigned work” sections, those immediately after the employment, and scope of changes ofplaces and works to which the worker may possibly be assigned in the future should be clearly indicated.
In the case of a person eligible for the special provisions under the Act on Special Measures Concerning Fixed-term
Employees with Expert Knowledge and Skills (advanced expert), the details and commencement and completion dates ofthe specified fixed-term operations (operations requiring expert knowledge that are scheduled to be completed within acertain period of time exceeding five years) stated in the Type-1 Plan approved under the same Act should also be stated.
The commencement and completion dates of the specified fixed-term operations are not necessarily the same as the firstand last dates of the fixed-term contract stated in the "Contract Term" section.
6. Specific conditions applied to the worker should be clearly indicated in the "Starting and Finishing Times, Rest Period
and Change in Shift Work, and Overtime Work" section. When any of the variable working hours system, flextime system,
discretionary work system, etc. is applied, the following should be noted.

• Variable working hours system: The applicable type (on a yearly basis, a monthly basis, etc.) should be stated. If
a work shift system is not applied, the part "or work shift system" should be deleted with a double line.
• Flextime system: The starting and finishing times of core time and flexible time, if applicable, should be stated. If
there are no core time and flexible time, () should be deleted with a double line.

• Deemed working hours outside the workplace: The prescribed starting time and finishing time should be stated.

34• Discretionary work system: If basic starting and finishing times are not specified, the part "with a basic startingtime at () and a basic finishing time at ()" should be deleted with a double line.

• Work shift system: Starting and finishing times for each shift should be stated. If a variable working hours system
is not applied, the parts "Variable working hours system or" and "on a () basis" should be deleted witha double line.
7. In the "Days Off" section, the relevant days of the week or dates of regular days off should be stated.
8. Annual paid leave is granted to a worker working continuously for at least six months with the attendance rate exceeding
80% for that period, and the number of days granted as annual paid leave should be stated in the "Leave" section. Annual
paid leave on an hourly basis is granted on an hourly basis under a labor-management agreement. Whether such system
exists or not should be stated. Substitute leave is granted under a labor-management agreement when a worker has worked
overtime in excess of 60 hours per month, in lieu of the payment of premium wages at a statutory raised premium wage
rate. Whether such system exists or not should be stated
For other types of leave, specific types of paid or unpaid leave and the number of days (period, etc.) should be stated separately.
9. Regarding 6. to 8. above, if the matters to be stated are too numerous, regarding the matters except for those on overtime
work, it suffices to indicate the starting and finishing times and the policy on days off for each type of jobs and tocomprehensively list up the provisions of the rules of employment applicable to the relevant worker.
10. In the "Wages" section, specific amounts of basic wage, etc. should be stated. However, if the amount can be identified
based on the wage classification, etc. stipulated in the rules of employment, it suffices to state the relevant classification.
• The minimum statutory raised premium wage rate is 25% for overtime work exceeding the statutory working hours, 50%
for overtime work exceeding the statutory working hours over 60 hours per month, 35% for work on a statutory holiday,
25% for night work, 50% for overtime work exceeding the statutory working hours at night, 75% for overtime work
exceeding the statutory working hours over 60 hours per month and at night, and at least 60% for work on a statutory
day off at night.
• The matters enclosed with a broken line should preferably be stated if they are established as a system. Information on
the matters hatched, however, is as stated in 3. above in the case of part-time workers and fixed-term workers
11. In the "Retirement" section, grounds and procedures for separation from employment and grounds for dismissal should
be stated concretely. In this case, if the matters to be stated are too numerous, it suffices to comprehensively list up theprovisions of the rules of employment applicable to the relevant worker.
(Reference) When a mandatory retirement system is adopted, the retirement age must not be below 60.
When the retirement age is set below 65, any of the following three measures (Measures for Securing
Employment for Elderly Persons) needs to be taken for the purpose of securing stable employment up to the ageof 65: In addition, any of the following five measures (Measures for Securing Employment for Elderly Persons)needs to be taken for the purpose of securing stable employment of elderly persons aged 65-70:(i) Raising the mandatory retirement age; (ii) Introducing a system to continue employment after retirement;(iii) Abolishing the provision on mandatory retirement;(iv) Introducing a system to conclude a continuous business consignment contract; and (v) introducing asystem that will enable workers to engage in social contribution businesses.
12. In the "Miscellaneous" section, enrollment in social insurance schemes, applicability of employment insurance, and thematters concerning expenses to be borne by workers, safety and health, vocational training, accident compensation andsupport for off-the-job injuries and diseases, commendations and sanctions, and administrative leave should preferably bestated if they are established as a system.
Retirement allowance plan under the Smaller Enterprise Retirement Allowance Mutual Aid Scheme or the corporate
pension schemes (corporate-type defined contribution pension scheme, defined benefit corporate pension scheme), if
available, should be clearly presented as parts of the working conditions orally, in writing or otherwise.
In the "Consultation service on employment management improvements" section, information concerning where toaccept consultations, including complaints from part-time workers and fixed-term workers, should be entered.

35

13. When working conditions are to be explained by clarifying the parts of the rules of employment applicable to the relevant
worker for each of the above matters and provide him/her with the rules of employment, it is not required to concretely fillin this form.
14. An employer is obliged by the Labor Standards Act to disseminate the rules of employment to workers, and must ensure thatworkers can easily check the rules of employment, when necessary, by describing the places where the rules of employment are
kept in this notice or otherwise.
* This is only a model format and need not necessarily be followed, depending on the method of deciding working conditions.

36

- II - Side Work and Extra WorkAs a matter of fact, an increasing number of workers wanted to do side work or extra work in diverse forms
for various reasons, while many companies did not permit employees' side work or extra work.
In the Action Plan for the Realization of Work Style Reform (decided by the Council for the Realization ofWork Style Reform on March 28, 2017) that reflected these circumstances, it was decided to diffuse andpromote side work and extra work by setting a direction, in principle, to allow side works and extra work,
while paying attention to ensuring the health of workers. Given this, the Ministry of Health, Labor and Welfare
established the “Guidelines on the Promotion of Side Work and Extra Work”summarizing the points tonote regarding working hours and measures to ensure the health of workers in January 2018, andsimultaneously revised the model rules of employment to allow side work and extra work in principle. In
September 2020, a revision was made to clarify rules, such as indicating concrete methods for ascertaining
workers' working hours at places for side work or extra work based on self-report, etc. and simple methods for
managing workers' working hours. In July 2022, from the perspective of promoting workers' diverse careerdevelopment, the ministry revised the Guidelines to encourage companies to disclose information on the statusof their measures promoting side work and extra work.
This Section outlines the current systems concerning side work and extra work and summarizes the
Guidelines.

1. Systems concerning Side Work and Extra Work
(1) Industrial accident compensation insuranceWith regard to workers who work for multiple companies, there were problems that industrial accident
compensation insurance benefits were not provided based on the amount of wages paid at all places of
employment and that workloads (working hours and stress, etc.) at all places of employment were not properly
evaluated together in acknowledging industrial accidents.
Through the amendment of the Industrial Accident Compensation Insurance Act (Act No. 50 of 1947), thecalculation method of the amount of insurance benefits for workers employed for multiple businesses ofdifferent employers (workers engaged in multiple businesses) and their bereaved families was altered from
September 1, 2020 and the amount of benefits to be provided came to be decided based on the amount totaling
all wages paid at all places of employment.
Additionally, in a case where an industrial accident cannot be acknowledged at one workplace, an employer
has come to decide to acknowledge an industrial accident by comprehensively evaluating workloads at
multiple workplaces of different employers.
When an industrial accident occurs on the way from one place of employment to another, the accident isdealt with as a commuting accident under the insurance relationship of said other place of employment(Kihatsu No. 0331042 of March 31, 2006).
In this case as well, the amount of insurance benefits is calculated by summing up the wage paid at theworkplace where the commuting accident occurs and the amount totaling wages paid at the other workplaces.
Incidentally, with regard to injuries and diseases that were caused on or before August 31, 2020, thecalculation is to be made only based on the wage paid at the workplace where the accident occurred.

(2) Employment insurance and social insurance (social pension insurance and health insurance)
A business establishment covered under the employment insurance must undertake procedures for
employment insurance for any worker who will be the insured irrespective of whether he/she does side work
or extra work. However, when a worker is employed by multiple employers at the same time and satisfies the37requirements for employment insurance respectively under those employment relationships, employment
insurance is only applicable to the employment relationship under which the worker earns major wages
necessary for maintaining a livelihood.(*)* On January 1, 2022, a new system was commenced under which workers aged 65 or older who workat multiple workplaces and satisfy the requirements for employment insurance when adding up all
working hours at any two of those multiple workplaces may become the insured by filing anapplication by themselves.
Whether social insurance applies to a worker doing side work or extra work depends on whether the worker
satisfies the requirements at respective workplaces.
A. When a worker does not satisfy the requirements at any workplace
Social pension insurance is not applicable. Even if the requirements are satisfied when totaling
working hours at all workplaces, the eligibility is judged for each workplace, and the relevant worker
will not be the insured.
B. When a worker satisfies the requirements at multiple workplaces
Social insurance applies to the worker at each of the multiple workplaces. The worker selects
any of those workplaces and the pension office (medical insurer) that has jurisdiction over theselected workplace totals the wages at all workplaces and calculates and determines the worker's
standard monthly remuneration amount. Each of the employers pay their share of insurance
premium decided based on the portion of the total wage that the employer pays to the worker tothe pension office (or medical insurer) that has jurisdiction over the selected workplace.

(3) Working hours
Article 38, paragraph (1) of the Labor Standards Act provides that "As far as application of the provisions
on working hours is concerned, total hours worked shall be aggregated, even if the hours worked were atdifferent workplaces." The case where the hours worked were at different workplaces includes the case wherea worker worked under different employers (Kihatsu No. 769 of May 14, 1948). The Guidelines on the
Promotion of Side Work and Extra Work present a primary method and a simple method of aggregating
working hours based on the provisions of the same paragraph (hereinafter the simple method is referred to as
the "management model"), and companies are expected to adopt a method that is easy to introduce forthemselves for each of the workers doing side work or extra work (for the details of the methods of aggregating
working hours, see the Guidelines on the Promotion of Side Work and Extra Work).
When aggregated hours worked by a worker doing side work or extra work exceed the statutory working
hours specified in Article 32 or 40 of the Labor Standards Act, so-called non-statutory working hours arise.

(4) Measures to ensure workers' good healthGeneral medical examinations (Article 66 of the Industrial Safety and Health Act) and stress checks(Article 66-10 of the same Act) need to also be conducted for workers doing side work or extra work.
These measures may be omitted for part-time workers whose regular working hours are below a certain
level (not longer than three-quarters of regular weekly working hours of ordinary workers engaging in thesame type of work) (Kihatsu-0130 No.1/Shokuhatsu-0130 No.6/Kokinhatsu-0130 No.1/Kaihatsu-0130 No.1
of January 30, 2019, etc.). Regarding workers doing side work or extra work, it is not necessary toaggregate those workers' regular working hours at multiple workplaces, and the need for taking relevantmeasures is to be judged independently based on workers' regular working hours at each workplace.
However, it is preferable to manage the health of those workers in consideration of their side work or
extra work through labor-management negotiations, in addition to taking statutory measures to ensure
workers' good health.

38

2. Responses by Companies and Workers Regarding Side Work and Extra Work
(1) Responses by companies
Considering judicial precedents, it would be appropriate for companies to permit employees' side work
or extra work, in principle. When permitting employees to do side work or extra work, companies need totake measures for the following matters.
A. Development of rules of employment, etc.
☑
Companies that prohibit employees' side work and extra work or that adopt a unified permission
system should preferably review their rules of employment toward permitting employees' side work or
extra work.
☑
In order to perform proper labor management in relation to employees' side work and extra
work, it is preferable to put in place a mechanism, such as a self-report system, to confirm whether
employees do side work or extra work and the content thereof.
B. Confirmation of employees' side work and extra work
☑ Employers, who naturally cannot know about employees' side work and extra work, are expected toconfirm whether employees do side work or extra work and the content thereof based on their selfreport.
☑ Preferably, employers should confirm the content of employees' side work and extra work from theperspective of whether relevant work would not cause damage to employees' safety and good healthand whether relevant work does not fall under prohibited or restricted work under their rules.
C. (A) Aggregation of working hours in excess of regular working hours (primary method of managing
working hours)☑ Based on the content of employees' side work or extra work confirmed as mentioned in B. above,
each company should aggregate its employees' regular working hours at the company and those atplaces of side work or extra work individually and confirm whether there is any part falling under
overtime work.
☑ As a result of the aggregation, if there is any part that exceeds the statutory working hours under
the company's working hour system, that part in excess falls under overtime work. A company thathas later concluded a labor contract is deemed to have the relevant worker do that overtime workas specified by its own agreement under Article 36 (see "Chapter 7: Overtime Work and Work on
Days Off" for details).
(B) Introduction of the management model (simple method of managing working hours)☑ It is supposed that each company requests employees doing side work or extra work follow the
management model and the management model is to be introduced based on consent of employees
and workplaces for side work and extra work through those employees.
☑ Each company should set the upper limit of working hours for respective workplaces within therange in which the number of hours totaling the non-statutory monthly working hours at thecompany and the number of monthly working hours at workplaces for side work or extra work(regular working hours and non-regular working hours) is less than 100 hours per month and 80
hours or less on average for multiple months.
D. (A) Aggregation of working hours in excess of regular working hours (primary method of managing
working hours)☑ After employees commence side work or extra work, each company should aggregate thenumber of working hours in excess of regular working hours for respective employees in the orderof those actually worked at the company and at workplaces for side work or extra work.
☑ As a result of the aggregation, if there is any part that exceeds the statutory working hours under
the company's working hour system, that part in excess falls under overtime work. The company
needs to limit the number of hours to have employees do overtime work within the upper limit forextension under its agreement under Article 36 and pay premium wages therefor.
(B) Implementation of the management model☑ Each company should have its employees work within the upper limit of working hours that it
has set as mentioned in C. (B) above.
☑ Employer A must pay premium wages for non-statutory working hours during which employees
worked for Employer A, and Employer B must pay premium wages for working hours during
which employees worked for Employer B.
E. Implementation of health management☑
Companies should have good communication with employees to check whether employees'
overwork due to side work or extra work causes any health problems or hindrance to their original
duties.

39☑
It is important for employers to take required measures to ensure employees' good healththrough labor-management negotiations, etc.
☑
When an employer gives instructions and has employees do side work or extra work, theemployer should ascertain and aggregate their working hours through information exchange withrespective employers of the side work or extra work and take measures to ensure employees' good
health.
F. Disclosure of information concerning side work and extra work
☑ From the perspective of promoting workers' diverse career development, it is preferable for companies
to publicize information such as whether they permit their workers' side work or extra work andconditions for permission, if any, on their websites, etc. to help workers' career choice.
(Representative examples of aggregation of working hours (primary methods of managing working hours))
1. When a worker, who had concluded with Employer X a labor contract for eight-hour work, has newly concluded
with Employer Y a labor contract for five-hour work on the same day as his/her regular working day at
Workplace X, and worked at both workplaces as respectively stipulated in these labor contracts
2. When a worker, who had concluded with Employer X a labor contract for eight-hour work per day from Monday
to Friday, has newly concluded with Employer Y a labor contract for five-hour work on Saturday, and worked
at both workplaces as respectively stipulated in these labor contracts
(1)

(2)
Sun.
Mon.

Workplace X: 8 hours

Tue.

Workplace X: 8 hours

Wed.

Workplace X: 8 hours

Thu.

Workplace X: 8 hours

Fri.

Workplace X: 8 hours

Sat.

Workplace Y: 5 hours

Total working hours from
Monday to Friday reach 40 hours.

→ 5-hour work at Workplace Y falls
under overtime work exceeding
the statutory working hours.

In both cases, working hours at Workplace X reach the statutory working hours per day or per week, and therefore,
work hours at Workplace Y fall under non-statutory working hours.
1

3. When a worker, who had concluded with Employer X a labor contract for four-hour work, has newly concluded
with Employer Y a labor contract for four-hour work on the same day as his/her regular working day at
Workplace X, and worked five hours at Workplace X and then worked four hours at Workplace Y
Working hours
under a labor
contract

Workplace X: 4
hours

Actualworking hours

Workplace X: 4
hours

1
hour

Workplace Y: 4hours

8 hours in total

Workplace Y: 4hours

9 hours in total

As aggregated regular working hours at Workplace X and Workplace Y already reach 8 hours per day, one hourof statutory overtime work occurs at Workplace X where non-regular work occurred.

40

4. When a worker, who had concluded with Employer X a labor contract for three-hour work, has newly concluded
with Employer Y a labor contract for three-hour work on the same day as his/her regular working day at Workplace
X, and worked five hours at Workplace X and then worked four hours at Workplace Y
Working hours
under a labor
contract
Actual working
hours

Workplace X: 3
hours

Workplace X: 5 hours

Workplace Y: 3
hours

Workplace Y: 3hours

6 hours in total

1 hour9 hours in total

When the worker worked five hours (3+2 hours) at Workplace X and then worked three hours at Workplace Y,
the total working hours reach the statutory daily working hours (8 hours), and one hour of statutory overtime work
occurs at Workplace Y.

41

(Management models)〇 When work in excess of regular working hours arises at A (when work in excess of regular working hours may
arise both at A and B, the upper limits should be determined in advance to avoid them mutually affecting each other)
As it is required to observe the legal limit for overtime work to be
applied to aggregated working hours (less than 100 hours per monthand 80 hours or less on average for multiple months), the upper limit
should be set within the range not exceeding the legal limit.

Statutory working hours
Regular working hours at A

Working hours in excess
of regular working hours
at A

A should pay premium wages for overtime
work exceeding the statutory working hours or
the predetermined working hours in the samemanner as at present.

Working hours at B
Premium wages at B

When an agreement
under Article 36 is
concluded with B,
workers may do side
work or extra workwithin the scope
stipulated in theagreement.

* The upper limit for overtime work shown in the figure above (less than 100 hours per month and 80 hours
or less on average for multiple months) is the legal limit. When aggregated working hours including thosefor side work or extra work exceed the statutory working hours, employers should make efforts to avoid
workers' prolonged overtime work.
〇 When work in excess of regular working hours does not arise at A

Regular working hours at A

Working
hours at B

Even when an agreement under Article 36 is notconcluded with B, workers may do side work or extra
work within this limit.
When an agreement under Article 36 is concluded
with B, workers may do side work or extra workwithin the scope stipulated in the agreement.

Regular working hours at A

Working hours at B
Premium wages at B

* The figure above shows a case where work in excess of regular working hours does not arise at A, but thesame idea may also be applicable to a case where A sets the upper limit for work in excess of regular working
hours within the limit of the statutory working hours.

42(2) Response by workers
When intending to do side work or extra work, workers need to note the following matters.
A. Reports, etc. concerning side work or extra work
A worker who intends to do side work or extra work first needs to confirm rules concerning side
work and extra work of the company where he/she works.
A worker who intends to do side work or extra work should then select appropriate work in terms ofthe content of duties and work hours in light of rules of the company where he/she works, while utilizing
information on side work and extra work disclosed by the company on its website and Hello Work as
needed.
When a workplace for side work or extra is determined, a worker should report the content of thework to the company in line with the method specified in the rules of employment, etc.
B. Implementation of health management
Upon doing side work or extra work, a worker needs to manage his/her workload including that at aworkplace for side work or extra work, and the progress of and required hours for side work or extra
work, as well as his/her own health conditions.
From the perspective of making employers' measures to ensure employees' good health truly
effective, workers should report their workloads at workplaces for side work or extra work and theirown health conditions to companies.

3. Major Judicial Precedents concerning Side Work and Extra Work
Manna UnyuUnyu
Case (Kyoto
District
Court Judgment
on
Manna
Case
(KyotoDistrictrendered
Court
July
13,
2012)
Judgment rendered on July 13, 2012)[Outline]
whereinthe thecompany
rejected
its juniorapplications
for doing anfor
extra
part-timejob[Outline]AAcase
casewhereincompany
rejected
its employee's
junior employee's
applications
doing
an extrafourtimes,
and
the
court
found
that
the
rejectionofthelattertwo
applications
lackedreasonablegrounds
andpart-time job four times, and the court found that the rejection of the latter two applications lacked
partially
upheldthe claim
forpartiallycompensation
based
an illegalact (only solatium)
reasonablegrounds
andupheldtheonclaim
for compensation
based on an illegal act (only[Excerptofthejudgment]
Workerscanfreely
use
their
time
other
than working hours outside the workplace andsolatium)theemployermust
permit workers
to usetime
fortheirworking
anothercompany(doingextrawork),thein[Excerptof thejudgment]
Workers
cansuchfreelyuse
timeatotherthanworkinghours
outsideprinciple.
However,
there
may
be
cases
where
a
worker's
provision
of
labor
to
the
original
employer
becomes
workplace and the employer must permit workers to use such time for working at another company
insufficientor work),
impossible
due to extra
work, orthere
wheremay
extrabework
causesleakageof the provision
original employer's(doing extra
in principle.
However,
cases
where
a worker'sof laborbusinesssecretorotherwise
disturbs
operational
order.
Therefore,
itisreasonable
toconstruethat
anemployerto the original employer becomes insufficient or impossible due to extra work, or where extra work
may prohibit its workers' extra work only in such cases exceptionally by establishing the rules of employment.
causes leakage of the original employer's business secret or otherwise disturbs operational order.
Therefore, it is reasonable to construe that an employer may prohibit its workers' extra work onlyin such cases exceptionally by establishing the rules of employment.
Ogawa
Construction
Case (Tokyo
District
Court Judgment
renderedon
Ogawa
Construction
Case(TokyoDistrict
Court
November 19, 1982)

Judgment rendered on November 19, 1982)[Outline]AA
case
whereinregardingdismissalof a worker
the groundsof unpermitted
work at a cabaret
six[Outline]
casewhereinregardingdismissalof aonworker
on thegrounds ofextra
unpermitted
extra for
work
hours
every
day,
the
court
found
that
the
extra
work
was
conducted
late
at
night
and
exceeded
the
scope
of
a
part-time
at a cabaret for six hours every day, the court found that the extra work was conducted late atjob
duringtime andhighlyoflikely
to somewhat
hindrances
to theworker's
provisionof labornight
anda spareexceededthewasscope
a part-time
jobcauseduringa sparetime
and sincere
was highly
likelytoto the company based on normal social conventions, and thus affirmed the validity of the dismissal
somewhat cause hindrances to the worker's sincere provision of labor to the company based on[Excerpt of the judgment] Principally, workers engage in work only for certain limited hours of the day under a labornormalsocialconventions,andvalidityextraof thedismissal
contract and
can usethe rest of thedaythus
freely.affirmed
Therefore,theprohibiting
work
completely in the rules of employment[Excerptofthejudgment]
Principally,
workers
engageinwork
only
for maycertainlimitedhours
thelacks reasonableness except under special circumstances. However, (omitted) there
be cases
whereextraofwork,
day underonathe
labor
contractandcan usethe restoperationalof the dayorder
freely.
Therefore,
prohibiting
extra
work
dependingcontent
thereof,
disturbs
a company's
or damages
its trustor dignity, andit cannot
completely
the rules oflacksinreasonablenessexcepttoundercircumstances.
besaid that it inis unjustifiable
to employment
establish a provision
the rules of employment
require special
workers to
obtain approval
However,(omitted)
maywhichbe casesdependingtheprovisioncontentofthereof,ofthe company
for their there
extra work,
is to bewhere
given inextra
light ofwork,
possiblehindrances onto theirlabor tothecompany
and effects onoperational
the company's
operational
order, etc.
provision
31,beparagraph(4)
disturbs
a company'sorder
or damages
itsTherefore,
trust or the
dignity,
andofitArticle
cannotsaid thatoftheunjustifiable
debtor's rules oftoemployment
same effectis foundto of
be employment
reasonable.
it isestablish toa theprovisionin therules
to require workers to obtainapproval of the company for their extra work, which is to be given in light of possible hindrances

43

Working Hours
I. Statutory Working Hours
1. Statutory Working Hours per Week
The Labor Standards Act provides that "employers must not have workers work more than 40 hours per
week, excluding rest periods" (Article 32, paragraph (1)), and statutory working hours per week are thus
specified as 40 hours except for workplaces subject to special measures.
Workplaces subject to special measures refer to workplaces with fewer than 10 workers in [i] commerce, [ii]film and theatrical performance business (excluding the film-making business), [iii] health and hygiene
business or [iv] entertainment business. Statutory working hours for these workplaces are specified to be 44
hours a week (Article 40 of the Labor Standards Act and Article 25-2, paragraph (1) of the Regulation for
Enforcement of the Labor Standards Act).

2. Statutory Working Hours per Day
The Labor Standards Act provides that "employers must not have workers work more than 8 hours per day
for each day of the week, excluding rest periods" (Article 32, paragraph (2)), and statutory working hours per
day are thus specified as eight hours.

3. Examples of 40-Hour Work per Week
As mentioned above, statutory working hours are eight hours per day with one-day statutory day off per
week as explained later. Therefore, for achieving 40-hour work per week, the following methods are
considered: [i] to adopt a five-day work week system or [ii] to shorten regular daily working hours with a oneday statutory day off
Representative examples are as follows.
(1) A five-day work week system with eight-hour work per day
8 hours × 5 days = 40 hours per week(2) A six-day work week system with 6 hour and 40 minute-work per day
6 hours and 40 minutes × 6 days = 40 hours per week

II. Definition of Working Hours
Working hours under the Labor Standards Act are hours during which a worker is under the direction andsupervision of the employer and a worker does not necessarily need to be actually working. Therefore, a time
during which a worker is not working but is ready to respond to any direction from the employer, or a so-called
standby time, is included in working hours.
Regarding working hours, it has been sometimes disputed whether the time before or after performing actual
duties, such as the time required for changing clothes, making arrangements, or taking a bath, etc., is included inworking hours. Judgments are made from the perspective of whether the time is indispensable for the relevanttasks and duties and whether the time is under direct control of the employer. There is a judicial precedent thatthe court ruled the time required for putting on or taking off workwear, safety helmet or safety shoes falls underworking hours when wearing such clothes, etc. is specified in the internal rules etc. as an obligation by designating44

the place and time (Judgment of the First Petty Bench of the Supreme Court on Mitsubishi Heavy Industries
Nagasaki Dockyard Case rendered on March 9, 2000).
Concrete approaches for cases where the coverage of working hours is disputed are as follows.

1. Change of Clothes, etc.
Regarding the time required for changing clothes, etc., there are various opinions, such as that the relevanttime should be included in working hours if wearing a certain uniform during work is obliged and that changing
clothes is merely a preparatory act for providing labor and the time required therefor should not be included inworking hours. However, as indicated in the abovementioned judicial precedent, under special circumstancessuch as where the rules of employment have related provisions or where an employer especially requires
workers to change to workwear, the workers are considered to be under the direction and supervision of theemployer and the time required for changing clothes should be included in working hours under the Labor
Standards Act.

2. Education and Training
The time to participate in education and training sessions is included in working hours under the Labor
Standards Act when attendance is required with a certain punishment for absence being specified in the rulesof employment or when attendance is beneficial and absence may cause disadvantage in personnel evaluation.
On the other hand, in the case of education and training sessions that workers participate in of their own volition
without being forced, the time required therefor is not included in working hours.
Safety and health education under the Industrial Safety and Health Act is necessary for engaging in work
and is to be provided upon the responsibility of an employer, and the time required therefor is included inworking hours under the Labor Standards Act.

3. Small Group Activities
The time required for small group activities is included in working hours under the Labor Standards Act
when joining is required with a certain punishment for absence being specified in the rules of employment. On
the other hand, the time required for optional activities that workers join of their own volition without being
forced is not included in working hours under the Labor Standards Act.

4. Medical Examinations
Medical examinations include general medical examinations and special medical examinations. Special
medical examinations must be conducted for performing duties and the required time is naturally included inworking hours under the Labor Standards Act (see "Chapter 18, III. Health Management"). On the other hand,as general medical examinations aim to ensure workers' good health in general, the required time is notnecessarily included in working hours under the Labor Standards Act, and whether or not to include it should
be decided through labor-management negotiations.

5. Workers' Voluntary After-Hours WorkWhen an employer knows that workers voluntarily work after hours and accepts the outcome of their labor
without taking any measures to stop them, the time spent for such after-hour work, even if it is voluntary, isconsidered to be working hours under the Labor Standards Act.

45

III. Variable Working Hours Systems
1. Variable Working Hours Systems
The variable working hours systems are permitted under the Labor Standards Act as exceptions to thestatutory working hours (eight hours per day and 40 hours per week).
The variable working hours systems mainly consist of the following, depending on the length of base period.
(1) One-month variable working hours system (Article 32-2 of the Labor Standards Act)
(2) One-year variable working hours system (Article 32-4 of the Labor Standards Act)
(3) Flextime system (Article 32-3 of the Labor Standards Act)

2. One-month Variable Working Hours System
Under this system, an employer is allowed to require workers to work more than the statutory daily andweekly working hours on a certain day or in a certain week as long as the average weekly working hours for acertain period of not more than one month do not exceed 40 hours (or 44 hours for workplaces subject to special
measures). To adopt this system, an employer must determine the following matters under the rules of
employment or a labor-management agreement. The labor-management agreement must be submitted to the
Director-General of the competent Labour Standards Inspection Office.
[i] Average weekly working hours for the period of variable working hours not exceeding the statutory
working hours
40 hours x

Calendar days of theperiod of variable
working hours/7(or 44 hours for workplaces subject tospecial measures)

If a period of variable working hours is one month
If the number of calendar days of the month is 31 days

177.1 hours

30 days171.4 hours

29 days165.7 hours

28 days160.0 hours[ii] Daily and weekly working hours for the period of variable working hours[iii] Starting day of the period of variable working hours(e.g.) If a one-month work shift is set for a month with 31 calendar days

46

For a month with 31 calendar days, the total monthly working hours must not exceed 177.1 hours. In thiscase, the total monthly working hours are 174 hours, so this is legal.

47Form 3-2 (Related to Article 12-2-2)
Type of BusinessType of Work

Notice of Agreement on One-month Variable Working Hours System
Name of Business
Place of Business (Tel.)

Number of Workers(aged under 18)

Longest Daily Working Hours(workers aged under 18)

(

hours

Period(starting day)minutes)Number of Regular Employees

Daily and Weekly Working Hours andRegular Days Off during the Period

Longest Weekly Working Hours(workers aged under 18)(

Effective Termhours

minutes)

Effective date of the agreement:
Name of the labor union (labor union consisting of a majority of the workers of the workplace) or name and title of Title:
a person representing a majority of the workers, who is the party to the agreement
Name:
Method of selecting the party to the agreement (in the case of a person representing a majority of the workers): ()
The labor union, which is the party to the agreement as stated above, is a labor union consisting of a majority of the workers in the workplace, or the person representing a majority of theworkers, who is the party to the agreement as stated above, represents a majority of the workers. □ (Check the box.)
The person representing a majority of the workers is not in a supervisory or management position prescribed in Article 41, item (ii) of the Labor Standards Act and has been chosen notbased on the intention of the employer but in accordance with the procedures, such as vote or a show of hands, after being clearly informed that a person who concludes agreements asprescribed in the same Act is to be chosen. □ (Check the box.)

MM/DD/YY
Employer
To the Director-General of the

Title:
Name:

Labour Standards Inspection OfficeNotes
1. When applying a variable working hours system to workers aged under 18 pursuant to Article 60, paragraph (3), item (ii) of the Labor Standards Act, the information regarding themshould be stated in the parentheses in each of the "Number of Workers," "Longest Daily Working Hours," and "Longest Weekly Working Hours" sections.
2. In the "Period" section, state the length of the base period for totaling working hours and the starting day of that period in the parentheses.
3. When all matters cannot be stated within the space of the "Daily and Weekly Working Hours and Regular Days Off during the Period" section, state them on a separate piece of paper
and attach it to this form.
4. The agreement must be concluded with the labor union if there is one consisting of a majority of the workers, or with the person representing a majority of the workers if there is nolabor union consisting of a majority of the workers. Pursuant to the provisions of Article 6-2, paragraph (1) of the Regulation for Enforcement of the Labor Standards Act, the person
representing a majority of the workers must not be in a supervisory or management position prescribed in Article 41, item (ii) of the Labor Standards Act and must be one who has
been chosen not based on the intention of the employer but in accordance with the procedures, such as vote or a show of hands, after being clearly informed that a person who
concludes agreements as prescribed in the same Act is to be chosen. It should be noted that the agreement is not valid if these requirements are not satisfied. It should also be notedthat even if these requirements are satisfied, if the relevant checkboxes are not checked, the document fails to conform to the requirements for formality as a notice.
5. When making the agreement with this form, it should be noted that the agreement should be concluded by a method to clarify the fact that the labor and management, the parties, bothreached a deal.

48

3. One-year Variable Working Hours System
Under this system, an employer is allowed to require workers to work more than the statutory daily or
weekly working hours on a certain day or in a certain week as long as the average weekly working hours for acertain period (exceeding one month but not exceeding one year) do not exceed 40 hours. The upper limits fordaily working hours and weekly working hours are defined.

(1) Requirements for adopting a one-year variable working hours system
A. Limitation on the length of the applicable period
The title of the system is the one-year variable working hours system, but the applicable period canbe set within the length exceeding one month but not exceeding one year, such as three months, fourmonths, or six months.
B. Limitation on the length of regular working hours during the period[i] Total regular working hours during the period
The average weekly working hours for the applicable period not exceeding one year must be 40
hours or less (also for a workplace subject to special measures, the maximum weekly working hours
on average under this system must be 40 hours, not 44 hours).
In order to satisfy the relevant requirements, the total regular working hours during the period
must be within the number of hours calculated as follows
Regular working hours during the period ≦ 40 hours ×

Number of calendar days in the period

7

According to this formula, the total regular working hours during the period are as follows. The
number of days in the period differs depending on the method of setting the applicable period.

Length of the period

Total regular working hours

1 year (365 days)

2,085.7 hours

6 months (183 days)

1,045.7 hours

4 months (122 days)

697.1 hours

3 months (92 days)

525.7 hours(Note) Fractions should be left as they are or be rounded off.
[ii] Limits of daily and weekly working hours (Article 12-4 of the Regulation for Enforcement of theLabor Standards Act)
Even if the average weekly working hours for a year remain within 40 hours, if regular working
hours on a specific day are 14 hours or 15 hours or regular working hours for a specific week are 70
hours, or otherwise a worker is subject to such labor obligations constantly, this may hinder the49

worker's daily life and may affect his/her health. Additionally, such practices may be employed in an
abusive manner as a means to avoid the payment of premium wages.
Accordingly, for the adoption of a one-year variable working hours system, the upper limits fordaily working hours and weekly working hours are defined as follows.
i)
Up to 10 hours per dayii)
Up to 52 hours per week
Additionally, when adopting a one-year variable working hours system for a period exceeding
three months, the number of weeks for which the maximum weekly working hours can be applied
are limited as follows.
i) Weekly working hours may exceed 48 hours consecutively up to three weeks during theperiodii) Each of the three-month portions of the whole period may contain the first day of the week
in which regular weekly working hours exceed 48 hours, up to three times.
These limits are defined for the purpose of preventing the accumulation of workers' fatigue due
to frequent or consecutive setting of days or weeks of long regular working hours. The following
figure explains the relevant requirements.

Check a variable working hours system for a 6-month period.
[iv] Check whether there are any days on which
regular daily working hours exceed the upper
limit (10 hours).
[v] Check whether the average regular weekly
working hours for the 6-month period are 40
hours or less.
[vi] Check whether the number of regular working
days do not exceed 138 days (280 days × 181
days / 365 days).

[i] Working hours for the first week exceed
the upper limit (52 hours).
[ii] Weekly working hours exceed 48 hours
for 4 consecutive weeks.
→ Working hours for the first or the last
week should be shortened to 48 hours or
less.

[iii] The first day of the 26th week is

54
54
52
52

52
52

③26included
週目の初日は二番目の
3 か月
in the second 3 months
andweekly working hours exceed
48 hoursに含まれており、48
時間超えの
4 times during
the 3-month period,
回数が上限
3 回超えとなる。
above the upper limit of 3 times.
→ 20・22・24・26 週のいずれかを→ Working hours for any of the 20th, 22nd,
48
時間以内に短縮24th,
or 26th weeks should be shortened

52
52

50
50

50
50

50
50

50
50

to 48 hours or less.

← Regular weekly working hours

40
40

1

2

3

4

35
35

35
35

35
35

35
35

35
35

35
35

35
35

35
35

35
35

35
35

35
35

5

6

7

8

9

10

11

12

13

14

15

35
35

35
35

35
35

35

16

17

18

19

20

21

40
40

22

Second 33months(e.g., 91 暦日）
days)
二番目の
か月（例：91

最初のFirst 33months
か月（例：90(e.g., 90 暦日）
days)
Weeks
→ →
週の経過

50

23

40
40

24

25

26

C. Limits of the number of working days during the period
When the applicable period exceeds three months, the upper limit for the number of working days
per year is defined to be 280 days. Accordingly, the maximum number of working days for a period
exceeding three months but not exceeding one year is calculated as follows.
Maximum number of working days during the period ＝ 280 days ×

Number of calendar days in the period

365 (366)

However, when falling under both of the following [i] and [ii], the maximum number of working
days is the number of annual working days minus one day for the applicable period under the former
agreement or 280 days: whichever represents the fewest number of days (when the applicable period
exceeds three months but does not exceed one year, the number of days is as calculated as above).
[i] When a workplace has a former agreement (meaning a labor-management agreement concerning a
one-year variable working hours system for a period exceeding three months that includes a day
within one year from the first day of the applicable period as mentioned in 1 (2) above (if a workplace
has multiple such agreements, the latest one))[ii] When a workplace determines working hours in a manner satisfying either of the followingi) The longest daily working hours exceed the maximum daily working hours under the former
agreement or 9 hours: whichever is longer.
ii) The longest weekly working hours exceed the maximum weekly working hours under the former
agreement or 48 hours: whichever is longer.
(e.g.) When a former agreement for a one-year period provides that the maximum daily working
hours should be 9 hours, the maximum weekly working hours should be 48 hours, and thenumber of working days should be 260 days, and if the maximum daily working hours arechanged to 10 hours, while maintaining the applicable period to be one year, the maximum
number of working days should be 259 days.
D. Conclusion and notification of the rules of employment or labor-management agreement
In order to adopt a one-year variable working hours system, it is necessary to:[i]stipulate the adoption in the rules of employment or the equivalent, or[ii] conclude a labor-management agreement (see p.[54] for an example) and submit it to the
Director-General of the competent Labour Standards Inspection Office (see p.[55] for the prescribedform).
E. Matters to be decided in a labor-management agreement[i]

Scope of workers
A one-year variable working hours system may also be applied to workers engaging in work only
for a part of the applicable period, such as new recruits or workers who quit a job in the middle.
However, in this case, when the regular weekly working hours on average for the period during
which such workers engaged in work exceed 40 hours, premium wages must be paid for the portionin excess.

[ii]

Applicable period

51

The applicable period must exceed one month but must not exceed one year. However, anespecially busy period may be designated as a specified period, which relates to the upper limit for
the number of days to have workers work consecutively explained in F. below.
[iii]

Working days during the period and working hours for each working day
Working days and daily working hours need to be decided in consideration of the limits of daily

and weekly working hours mentioned in B.[ii] above so that the average weekly working hours forthe applicable period do not exceed 40 hours.
When dividing the applicable period into several portions exceeding one month, regular daily
working hours for the first one month need to be decided, but for the other portions, it suffices todecide only the total numbers of working days and working hours, respectively. Concrete working
days and working hours for these following portions of the period may be decided in writing by
obtaining consent of a labor union consisting of the majority of the workers of the relevant workplace(or a person representing the majority if a labor union does not exist) by 30 days prior to the first dayof each portion of the period.
[iv]

Effective term
An effective term of a labor-management agreement is preferably no longer than one year.

[v]

Starting day of the applicable period
The first day to start the application of the variable working hours system must be decided.

F. Limits of the number of days to have workers work consecutively
The upper limit is six days, excluding a specified period.
The upper limit for a specified period is the number of days in which one day off can be secured
per week. Therefore, the maximum number of consecutive working days is 12.

(2) Concrete example of a one-year variable working hours system
If the busy months are February, March and April, while July and August are the off-season, a oneyear variable working hours system may be adopted in accordance with annual fluctuations in workload
by deciding and managing regular working days and regular working hours for each working day basedon an annual calendar.

52

◆ Example of an annual calendar for a one-year variable working hours system* Assuming that regular working hours per day are 7 hours and 30 minutes; February, March, and April are thebusy months and July and August are the off-season; adjustments are made not by changing the length of
regular working hours but by changing regular days off
From April 1, 2013, to March 31, 2014
April 2013 (24 days)
Sun.

= Regular days off
May 2013 (23 days)

Mon.

Tue.

Wed.

Thu.

Fri.

Sat.

1

2

3

4

5

6

Sun.

Mon.

7

8

9

10

11

12

13

5

6

14

15

16

17

18

19

20

12

21

22

23

24

25

26

27

19

28

29

30

26

Tue.

June 2013 (20days)

Wed.

Thu.

Fri.

Sat.

1

2

3

4

Sun.

Mon.

Tue.

Wed.

Thu.

Fri.

7

8

9

10

11

13

14

15

16

17

20

21

22

23

24

27

28

29

30

31

Sat.

2

3

4

5

6

7

8

18

9

10

11

12

13

14

15

25

16

17

18

19

20

21

22

23

24

25

26

27

28

29

Fri.

Sat.

1

30
July 2013 (24 days)
Sun.

Mon.

Tue.

Wed.

Thu.

August 2013 (17 days)
Fri.

Sat.

Sun.

Mon.

Tue.

Wed.

4

5

6

7

September 2013 (23 days)

Thu.

Fri.

Sat.

Sun.

Mon.

1
8

Tue.

Wed.

Thu.

2

3

1

2

3

4

5

6

7

9

10

8

9

10

11

12

13

14

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

11

12

13

14

15

16

17

15

16

17

18

19

20

21

21

22

23

24

25

26

27

18

19

20

21

22

23

24

22

23

24

25

26

27

28

28

29

30

31

25

26

27

28

29

30

31

29

30

Sun.

Mon.

Sun.

Mon.

Tue.

Wed.

Thu.

Fri.

Sat.

Sun.

Mon.

Fri.

Sat.

1

2

1

2

3

4

5

6

7

6

7

4

5

6

7

8

9

8

9

10

11

12

13

14

13
20

October 2013 (26 days)
Thu.

November 2013 (23 days)
Fri.

Sat.

December 2013 (25 days)

Tue.

Wed.

1

2

3

4

5

8

9

10

11

12

3

14

15

16

17

18

19

10

11

12

13

14

15

16

15

16

17

18

19

20

21

21

22

23

24

25

26

17

18

19

20

21

22

23

22

23

24

25

26

27

28

27

28

29

30

31

24

25

26

27

28

29

30

29

30

31

Sun.

Mon.

Tue.

Sun.

Mon.

Tue.

Wed.

Thu.

Fri.

Sat.

Sun.

Mon.

Tue.

Wed.

Thu.

Fri.

Sat.

5

6

7

2

3

4

5

6

7

8

2

3

4

5

6

7

8

12

13

19

20

26

27

January 2014 (22 days)

February 2014 (24 days)
Fri.

Sat.

Tue.

Wed.

Thu.

March 2014 (26 days)

Wed.

Thu.

1

2

3

4

8

9

10

11

14

15

16

17

18

9

10

11

12

13

14

15

9

10

11

12

13

14

15

21

22

23

24

25

16

17

18

19

20

21

22

16

17

18

19

20

21

22

28

29

30

31

23

24

25

26

27

28

23

24

25

26

27

28

29

30

31

1

7 hours and 30 minutes × 277 days ＝ 2,077.5 hours(Regular working hours per day)

2,077.5 hours / (365 days / 7 days) ＝ 39.84 hours ＜ 40 hours(Total regular working hours per year)(Weekly working hours)

53

1◆ Example of a labor-management agreement on a one-year variable working hours system

Labor-Management Agreement on One-year Variable Working Hours System○○○○ Co., Ltd. and ○○ Labor Union agreed as follows concerning the one-year variable working hours
system.
(Duty Hours)
Article 1 (1) Regular working hours are defined under a one-year variable working hours system and do not
exceed 40 hours per week on overage for one year.
(2) Regular daily working hours are 7 hours and 30 minutes and starting time, finishing time, and rest period
are as follows.
Starting time: 9:00; Finishing time: 17:30; Rest period: From 12:00 to 13:00(Starting Day)
Article 2 The starting day of the applicable period is April 1, YY.
(Days Off)
Article 3 Days off are as shown in the attached annual calendar.
(Scope of Workers Covered under the System)
Article 4 The variable working hours system under this agreement applies to all workers except for any of thefollowing.
[i]

Minors aged under 18[ii]

Female workers who are pregnant or are within one year after childbirth and who have applied for

exemption from this system[iii]

Workers taking care of children or family members, workers receiving vocational training or

education or other workers requiring special consideration who have applied for exemption from thissystem.
(Specified Period)
Article 5 A specified period is not set.
(Effective Term)
Article 6 This agreement is effective for one year from the starting day.

MM/DD/YY
CEO, ○○○○ Co., Ltd.

○○○○

Chairman, ○○ Labor Union

54

Seal
○○○○

Seal

Form 4 (Re. Article 12-4, paragraph (6))
Notice of Agreement on One-year Variable Working Hours System
Type of Business

Name of Business

Number of Workers(aged 18 or older)

Applicable Period and Specified
Period(starting day)(Place of Business (Tel.))

Longest Daily Working
Hours(workers aged under 18)

9 hours 00 minutes(
hours
minutes)

Maximum Number of Consecutive Weeksduring Which Weekly Working Hours Exceed
48 Hours
Number of Weeks during the Period in Which
Weekly Working Hours Exceed 48 Hours

Daily and Weekly Working Hours andRegular Days Off during the Period

Average Weekly Working
Hours during the Period

Number of Regular
Employees

Effective Term

Total Numberof Working(
hours
minutes)
Days during
the Period
Maximum Number of Consecutive Working
Days during the Period
Maximum Number of Consecutive Working
Days during the Specified Period
Longest Daily Working Hours under the Former
Agreement
Total Number of Working Days during the
Period under the Former Agreement

Longest Weekly Working
Hours(workers aged under 18)

Period under the Former Agreement
Longest Weekly Working Hours under theFormer Agreement
Effective date of the agreement:
Name of the labor union (labor union consisting of a majority of the workers of the workplace) or name and title of Title:
a person representing a majority of the workers, who is the party to the agreement
Name:
Method of selecting the party to the agreement (in the case of a person representing a majority of the workers) ()

The labor union, which is the party to the agreement as stated above, is a labor union consisting of a majority of the workers in the workplace, or the person representing a majority of the workers,
who is the party to the agreement as stated above, represents a majority of the workers. □ (Check the box.)
The person representing a majority of the workers is not in a supervisory or management position prescribed in Article 41, item (ii) of the Labor Standards Act and has been chosen not based on
the intention of the employer but in accordance with the procedures, such as vote or a show of hands, after being clearly informed that a person who concludes agreements as prescribed in thesame Act is to be chosen. □ (Check the box.)

MM/DD/YY
Employer
To the Director-General of the

Title:
Name:

Labour Standards Inspection OfficeNotes
1. When applying a variable working hours system to workers aged under 18 pursuant to Article 60, paragraph (3), item (ii) of the Labor Standards Act, the information regarding them should be stated in the parenthesesin each of the "Number of Workers," "Longest Daily Working Hours," and "Longest Weekly Working Hours" sections.
2. In the "Applicable Period and Specified Period" section, state the length of the base period for totaling working hours and the starting day of that period in the parentheses.
3. Prepare a separate piece of paper to state the daily and weekly working hours and regular days off during the period and attach it to this form.
4. The former agreement is as prescribed in Article 12-4, paragraph (3) of the Regulation for Enforcement of the Labor Standards Act.
5. The agreement must be concluded with the labor union if there is one consisting of a majority of the workers, or with the person representing a majority of the workers if there is no labor union consisting of a majorityof the workers. Pursuant to the provisions of Article 6-2, paragraph (1) of the Regulation for Enforcement of the Labor Standards Act, the person representing a majority of the workers must not be in a supervisory or
management position prescribed in Article 41, item (ii) of the Labor Standards Act and must be one who has been chosen not based on the intention of the employer but in accordance with the procedures, such as voteor a show of hands, after being clearly informed that a person who concludes agreements as prescribed in the same Act is to be chosen. It should be noted that the agreement is not valid if these requirements are notsatisfied. It should also be noted that even if these requirements are satisfied, if the relevant checkboxes are not checked, the document fails to conform to the requirements for formality as a notice.
6. When making the agreement with this form, it should be noted that the agreement should be concluded by a method to clarify the fact that the labor and management, the parties, both reached a deal.

55

4. Flextime System
A flextime system is a system under which regular daily working hours and starting and finishing times are
not fixed, but an employer determines total working hours for a certain period not exceeding one month, andworkers can work within the limit of the total working hours by deciding the starting and finishing times foreach working day at their own initiative (Article 32-3 of the Labor Standards Act).

(1) Requirements for adopting a flextime system
In order to adopt a flextime system, the following procedures need to be undertaken.
A.Prescribe that the starting and finishing times are left to the discretion of each worker in the rules of
employment or other equivalent documents.
B. Decide the following through a labor-management agreement.
[i]
Scope of workers[ii]
Settlement period(*1)[iii] Total working hours for the settlement period(*2)[iv]Standard daily working hours[v]
When deciding a core time(*3) or a flexible time,(*4) their starting and finishing times*1: A period for which hours that a flextime worker must engage in work are determined under alabor contract, The period is to be fixed within the scope of three months. If the settlement
period exceeds one month, the relevant labor-management agreement must be notified to the
Director-General of the competent Labour Standards Inspection Office.In addition, the initialdate for calculating the settlement period must be made clear prior to the conclusion of thelabor-management agreement.
*2: The number of hours during which a flextime worker must engage in work within thesettlement period (regular working hours under a flextime system); The total working hours
are to be decided in a manner such that the average working hours during the settlement
period do not exceed the statutory working hours. Times to come to and leave the office eachday are decided by individual workers.
*3/4: Core time refers to hours during which a worker must engage in work at the office and flexible
time refers to hours for which a worker can decide times to start and finish working by
him/herself. Those are not necessarily to be set.
Example of a flextime system
07:00

09:00

10:00

Flexible time

12:00

Core time

13:00

Break

15:00

Core time

17:00

19:00

Flexible timeWorking hours(2) Payment of premium wages
When the flextime system is adopted, workers decide their daily working hours by themselves.
Therefore, even if a worker worked in excess of the statutory daily working hours (eight hours) or weekly
working hours (40 hours), such work does not immediately fall under overtime work, and working for
shorter hours than the standard daily working hours is not simply considered as absence from work.

56

Under the flextime system, the portion of actual working hours during the settlement period thatexceeds the total of monthly statutory working hours during that settlement period(*), among others, falls
under the hours of overtime work. (Incidentally, it is necessary to conclude an agreement under Article 36
in order to have workers work overtime.)
Total of monthly statutory working hours
Number of days
during thesettlement period

31 days177.1 hours

30 days171.4 hours

29 days165.7 hours

28 days160.0 hours(*1) For workplaces subject to special measures,(*2) weekly statutory working hours are 44 hours, andthe calculation mentioned above is to be based on 44 hours.
However, when the settlement period exceeds one month, workplaces subject to special measures
are also required to conclude and submit an agreement under Article 36 and pay premium wages
for having workers work overtime in excess of the weekly average of 40 hours.
(*2) Workplaces subject to special measures
Workplaces with fewer than 10 workers in [i] commerce, [ii] film and theatrical performancebusiness (excluding the film-making business), [iii] health and hygiene business or [iv]entertainment businessFor example, when the settlement period is one month, the total of statutory working hours is as follows,
and the total working hours during the settlement period must not exceed these limits.
When the settlement period exceeds one month, the following is required:(i)

The total working hours during the settlement period do not exceed the total of thestatutory working hours.(*1)(ii)

Average weekly working hours do not exceed 50 hours for each month.(*2)Work in

excess of either of the above falls under overtime work.
Accordingly, even if the gap between the busy season and the off-season is significant, it is not allowed
to arbitrarily increase working hours excessively in busy months.
(*1) When the settlement period exceeds one month, and there is any worker who joined or retired
during the period and actually worked for a shorter period than the settlement period, thesettlement should be made for the period during which he/she actually worked. If the worker
worked in excess of 40 hours per week on average during that period, premium wages need
to be paid for those excess hours (Article 32-3-2 of the Labor Standards Act).
Workplaces subject to special measures can have workers work up to 44 hours per week
on average when the settlement period is one month or shorter. However, when setting asettlement period exceeding one month and intending to have workers work in excess of 40
hours per week on average, those workplaces are also required to conclude and submit anagreement under Article 36 and pay premium wages (Article 25-2, paragraph (4) of theRegulation for Enforcement of the Labor Standards Act).
(*2)

When the settlement period is set not on a monthly basis and there is any period less than amonth at the end, it must be ensured that working hours during that period do not exceed 50
hours per week on average.

57

5. Matters to Note when Adopting a Variable Working Hours System(1) Minors
A.An employer is not allowed to have minors aged under 18 work under various variable working hours
systems, in principle (Article 60, paragraph (1) of the Labor Standards Act).
B. However, with respect to minors over 15 and under 18 years of age (excluding the period until the first
31st of March that occurs on or after the day when they reach 15 years of age), an employer may havethem work in accordance with a one-month or one-year variable working hours system up to 48 hours
per week and up to eight hours per day (Article 60, paragraph (3) of the Labor Standards Act).

(2) Pregnant women and women within one year after childbirth
When a female worker who is pregnant or is within one year after childbirth makes a request, theemployer must have such worker work within the limits of 40 hours per week and eight hours per day,even under a one-month or one-year variable working hours system or a one-week atypical adjustableworking hours system (Article 66, paragraph (1) of the Labor Standards Act).

(3) Persons requiring special consideration
When an employer has any of the following persons work under a variable working hours system(excluding a flextime system), the employer must give due consideration so that such person can secure
time required for the child care, family care or studying, etc. (Article 12-6 of the Regulation for
Enforcement of the Labor Standards Act).
A.

A person who takes care of his/her child(ren)B.

A person who takes care of his/her elderly family member(s)D.

Other persons who require special considerationWhen an employer has any of the following

persons work under a variable working hours system (excluding a flextime system), the employer must
give due consideration so that such person can secure time required for the child care, family care or
studying, etc. (Article 12-6 of the Regulation for Enforcement of the Labor Standards Act).

IV. Proper Management of Working Hours
1. Employer's Responsibility to Ascertain Workers' Working Hours
The Labor Standards Act requires employers to ascertain workers' total working hours by obliging them torecord working hours in a wage ledger, but ascertaining times when workers start and finish their work is notmandatory.
However, it can be said that the Labor Standards Act is naturally based on the premise that employers manage
workers' working hours properly by ascertaining their starting and finishing times to surely pay wages in full,including premium wages for overtime work, work on days off or work late at night, etc. or otherwise ensure
they do not violate the Act.

58

2. Criteria for Proper Management of Working Hours
Irrespective of whether or not workers do overtime work, employers need to properly ascertain each worker's
starting time and finishing time.
In order to clarify such obligations of employers, the Ministry of Health, Labour and Welfare established the"Guidelines Concerning Measures to be Taken by Employers for Properly Ascertaining Working Hours" (onJanuary 20, 2017) to concretely explain required measures and has provided guidance so that employers surely
manage working hours properly and observe the Labor Standards Act.
Check and record daily starting andfinishing times of each worker[i] An employer him/herself
directly
checkseach
worker's working hours andmakes a record.

[ii] An employer checks eachworker's working hours
based on objective data intime cards, IC cards or hoursof PC use, etc. and makes arecord.

[iii] An employer ascertains eachworker's working hours
based on his/her self-report.

Measures to be taken when an employer has to ascertain
workers' working hours based on self-reported data due tounavoidable reasons[i] Before employment, provide all subject workers with sufficient
explanations regarding the fact that they are required to correctly
record their working hours and properly make a report thereof[ii] Provide a person who actually manages workers' working hours
with sufficient explanations concerning measures to be taken,
including proper operation of the self-reporting system[iii] Examine the status concerning whether the working hours
ascertained based on self-reported data match the actual working
hours, and make corrections as necessary.
[iv] When requesting a report from a worker with regard to the reason
for staying at the workplace in excess of the self-reported
working hours, check whether the relevant report is madeproperly[v] Do not employ such means as setting an upper limit of the hoursof overtime work and rejecting self-reports of working hours
exceeding that limit with the aim of hindering proper reportingof working hours; Check whether the reduction of overtime work
or a rule to pay a fixed amount for overtime work hinder proper
reporting of working hours, and take corrective measures if any
hindrance is found.

Record correct data in a wage ledger

A person who manages workers' working hours should
check the status of management and eliminate problems,
if any. Meetings of a working hours improvement
committee, etc. should be held as necessary to ascertain

Preserve a roster of workers and a wage ledger,
as well as other documents in which eachworker's working hours are recorded, such asattendance records and time cards, for 3 years

the situation and discuss measures to solve problems.

59

3. Guidelines for Eliminating Unpaid Overtime Work
Unpaid overtime work refers to a situation where a worker has worked or has been forced to work in excess
of regular working hours but the employer does not pay wages or premium wages for a part or the whole ofthe excess working hours. Such acts of an employer are evidently in violation of the Labor Standards Act andcannot be accepted both from the perspective of protecting workers and from the perspective of ensuring faircompetition.
The Health and Welfare Ministry considered that it would be indispensable to properly ascertain workers'
working hours in order to prevent unpaid overtime work, and thus established the "Criteria Concerning
Measures to be Taken for Properly Ascertaining Working Hours" as mentioned in 2. above. However, in order
to completely eliminate unpaid overtime work, it is not sufficient that only an employer strives to ascertain
workers' working hours properly. It is necessary to develop the whole system for managing working hours,
while clarifying the management mechanism and developing checking systems. Collaborative labormanagement efforts are indispensable for creating a work climate to observe rules and manage working hours.
In 1940, the Health and Welfare Ministry further established the "Guidelines Concerning Measures to be
Taken for Eliminating Unpaid Overtime Work" (Kihatsu No.0523004 of May 23, 2003) and requested both
workers and employers to properly manage working hours and make positive efforts to eliminate unpaid
overtime work.
Collaborative labor-management efforts requested in the Guidelines are as follows.
◆ The employer
The employer
shouldshouldobserveobservethe "Criteria
the "Criteria
Concerning
Concerning
Measures Measures
to be Taken
to forbeProperly
Taken for
Ascertaining
Properly
Ascertaining
WorkingWorking
Hours." Hours."◆ The labor
The labor
unionunion
shouldshouldfully fully
disseminate
disseminate
the criteria
the criteria
among
among
workers.
workers.

◆
The top management should express its strong determination and strive to ascertain the situation by◆ The top management should express its strong determination and strive to ascertain the situation by such
such means as directly patrolling the workplace.
means as directly patrolling the workplace.
◆
Labor and management should jointly declare their commitment to eliminating unpaid overtime◆ Labor and management should jointly declare their commitment to eliminating unpaid overtime work.
work.
◆ Efforts should be made to improve the work climate through employee/union member education.
◆
Efforts should be made to improve the work climate through employee/union member education.

◆ A system to properly manage working hours should be developed.
◇ Establish a system to ascertain the status of unpaid overtime work based on records of time cards, entries
in PCs, and results of in-house questionnaire surveys and to properly ascertain working hours (preparationof a manual, etc.)◇ Review the current operational system and ways of giving orders, which form a hotbed of unpaid overtime
work, by the use of labor-management committee meetings or other opportunities◇ Introduce
Introducea personnel
a personnel
evaluation
evaluation
systemsystemthat doesthat does
not highly
not highly
evaluateevaluate
workers'
workers'
unpaidunpaidworkwork◆ A system of responsibility should be clarified and checking systems should be put in place.
◇ Clarify a person responsible for managing working hours for each workplace◇ Prepare consultation offices, comment boxes, or dedicated e-mail services◇ The labor union should take necessary measures such as the preparation of consultation services.

60

V. System to Deem Hours for Work Outside Workplaces as Regular
Working Hours
Some workers, such as field sales people, who work outside workplaces almost all day find it difficult to
calculate their working hours.
In this manner, when a worker engages in work outside of the workplace, where concrete direction andsupervision of his/her employer do not reach, during all or part of his/her working hours and it would be
difficult to calculate working hours, such hours for work outside the workplace are to be deemed to fall underregular working hours of the workplace (the main clause of Article 38-2, paragraph (1) of the Labor Standards
Act).
If it is necessary to work in excess of the regular working hours in order to carry out the relevant work, thenumber of hours worked are to be deemed to be the number of hours normally required to carry out such work
(the proviso to Article 38-2, paragraph (1) of the Labor Standards Act). In this case, if the number of hours
normally required for the relevant work is stipulated in a labor-management agreement, the worker is deemed
to have worked for that number of hours. Such labor-management agreement must be submitted by theemployer to the Director-General of the competent Labour Standards Inspection Office.
However, even in the case of work outside workplaces, when a worker is under the concrete direction andsupervision of the employer as follows, the worker's working hours can be calculated and this system of deemed
working hours does not apply.
[i] When a group of workers work outside the workplace and a worker in charge of managing their working
hours is included in that group[ii] When a worker engages in work while receiving instructions from the employer by cellular phone, etc.
as needed[iii] When a worker first receives concrete instructions at the workplace with regard to the work on that day,including the place to visit and time to return to the workplace, then visits that place to engage in workand returns to the workplace after finishing it

VI. Discretionary Work System
A discretionary work system is a system under which a worker works without receiving concrete instructions
from the employer because the means of executing work or the allocation of time needs to be left to thediscretion of the worker due to the nature of the work, and the worker is deemed to have worked for the working
hours as agreed to in advance between labor and management.
There are two types of discretionary work system as follows.
[i] Discretionary work system for professional work such as research and development of new products andtechnologies[ii] Discretionary work system for management-related work such as planning, researching and analyzing
matters regarding business operation

1. Discretionary Work System for Professional WorkFor such work as development of new products or technologies, the methods of executing work or the
allocation of time need to be left to the discretion of workers due to the nature of the work. As types of work
for which it is difficult for employers to give concrete instructions on how to execute work or allocate time,
the following 20 types of work are specified ([xiii] will be added on April 1, 2024).
[i]
Research and development of new products or technologies or research in cultural or natural sciences[ii]
Analysis or design of information processing systems[iii]
News gathering or editing in the newspaper, publication or broadcasting business[iv]
Development of new designs for apparel, interior decoration, industrial products, advertisements,
etc. (work of designers)[v]
Work of producers or directors in the business of making broadcast programs, films, etc.

61

[vi]

Drafting of copies concerning the details and characteristics of products for the purpose ofadvertisement (work of copywriters)[vii] Consultation and advice concerning problems in utilizing information processing systems inbusiness and methods of applying systems (work of system consultants)[viii] Coordination and advice concerning layouts of lighting equipment and furniture within buildings(work of interior coordinators)[ix]
Creation of game software[x]Analysis and evaluation of security market trends or value of securities or advice on investments
based thereon (work of financial analysts)[xi]
Development of financial products based on knowledge of financial engineering[xii] Teaching and research at universities[xiii] Researches or analysis of mergers and acquisitions for clients and planning of and advice on mergers
and acquisitions thereupon (M&A advisory service) by banks or securities companies[xiv] Work of certified public accountants[xv] Work of attorneys[xvi] Work of architects[xvii] Work of real estate appraisers[xviii] Work of patent attorneys[xix] Work of tax accountants[xx] Work of small and medium enterprise management consultants
Regarding workers who engage in duties stipulated in a labor-management agreement out of the types ofwork listed above, they are deemed to have worked for the working hours as stipulated in the agreement,
irrespective of their actual working hours.

(1) Matters to be decided in a labor-management agreement (Matters with “*” will take effect from April
1, 2024))[i] Types of work covered by the system
Types of work covered by the discretionary work system for professional work are the types of work
determined by ministerial ordinances and public notices as the types of work that, due to their nature,
it is difficult for employers to give concrete instructions as to the means of conducting it and theallocation of time, as those employers need to leave a significant amount of the methods of conducting
or other decisions to the workers engaged in that work (a total of 20 works and services enumerated
above).
[ii] Daily hours during which workers are deemed to have worked (deemed working hours)
Deemed working hours must be specifically agreed as the number of daily working hours ofworkers subject to the system. It is impossible to agree the number of working hours on a weekly ormonthly basis.
When setting deemed working hours, it is necessary to ensure that workers subject to the system
may be treated reasonably by setting working hours at an appropriate level in view of the content of thecovered types of work and the wage and evaluation systems applicable to workers subject to the system.
Whether workers are treated reasonably must be individually and specifically judged based on thecircumstances of each workplace. However, it is necessary to ensure that the treatment appropriate for
applying the discretionary work system, not the normal working hours system, is secured.
Deemed working hours must not necessarily be matched with the actual working hours for the
purpose of operating the professional work system. For example, the “regular working hours” and“regular working hours plus a certain amount of time” at each workplace may be set as deemed working

62hours. In that case, however, it is necessary to secure reasonable treatment by paying special allowances
to, or otherwise raising the base salary of, workers subject to the system.
[iii] Employers not having to give specific instructions to workers subject to the system as to the meansof conducting the covered types of work or the allocation of time[iv] Concrete details of the measures to ensure health and welfare to be implemented according to thesituation of working hours of workers subject to the systemEven under the discretionary work system,
employers are obliged by Article 66-8-3 of the Industrial Safety and Health Act or other provisions
to monitor the situation of working hours, and are required to understand during which times andhow long workers subject to the system could provide labor. The methods of achieving this must be
objective, including the use of timecard records, records of use time of personal computers and otherelectronic devices, and other appropriate means.
Based on the situation of working hours of workers subject to the system monitored through the useof the methods mentioned above, it is necessary to specifically agree what measures employers willtake to ensure health and welfare according to the working situations of workers subject to the system.
[v]

Concrete details of measures to be taken to handle complaints raised by workers subject to thesystem
Employers must agree that they will take measures to handle complaints raised by workers subject

to the system, as well as concrete details of such measures.
Employers should clarify the details of a service office to accept complaints, responsible personnel,
scope of complaints to be handled, procedures and methods of solving complaints, etc.
[vi] Requirement for obtaining a worker’s consent to be subject to the system(*)
A worker’s consent must be obtained from each worker and for each effective term of the relevant
labor-management agreement. It is appropriate to concretely specify in the labor-managementagreement the effect that a worker’s consent must be obtained in writing, as well as other proceduresfor obtaining it.
[vii] Prohibition of treatment disadvantageous to workers who gave no consent to be subject to thesystem(*)
Even if a worker refuses to give his or her consent to be subject to the system, that worker’s
assignment and treatment should not be disadvantageous on that ground.
[viii] Withdrawal of a consent to be subject to the system(*)
When an employer concludes an agreement, the employer must clearly indicate an office to whichnotice of withdrawal is to be given and a person in charge, method of giving notice of withdrawal, andother concrete details.
[ix] Effective term of a labor-management agreement
The effective term of the labor-management agreement should preferably be no longer than three
years. No automatic renewal of the agreement will be allowed and a new labor-management agreement
must be concluded upon the expiration of the effective term.
[x] Retention of records on the conditions of working hours, measures mentioned in [v] and [vi], andconsent and its withdrawal(*) for each worker during the effective term of the agreement and forthree years after the expiration of the term(2) Obligation of notification
A labor-management agreement mentioned in (1) above must be documented in the prescribed form
(see p.[67]) and be submitted to the Director-General of the competent Labour Standards Inspection Office.

63

2. Discretionary Work System for Management-related Work
Apart from the discretionary work system mentioned in 1. above, the discretionary work system for
management-related work (hereinafter referred to as “management-related work system”) may be adopted forwork of planning, researching and analyzing matters regarding business operation for which an employer does
not give concrete instructions concerning decisions, etc. on the means of executing work or the allocation oftime (hereinafter referred to as “covered types of work”), as the employer needs to leave a significant amountof the methods of conducting it to the workers engaged in that work, on the following conditions: a labormanagement committee that satisfies certain requirements has been established for the purpose of examining
matters concerning working conditions and giving workers opportunities to present opinions; and the following
matters have been decided by a majority of no less than four-fifths of committee members, have been
documented in the prescribed form (see p.[68]) and have been submitted to the Director-General of thecompetent Labour Standards Inspection Office.
(Note) A discretionary work system for management-related work may naturally be adopted only at aworkplace where any of the covered types of work is conducted.

(1) Matters to be resolved at a labor-management committee (matters with “*” will take effect from April
1, 2024)[i] Types of work covered by the system
Covered types of work for management-related work refer to work such as planning, researching andanalyzing matters that affect operation of the business for which the employer does not give concrete
instructions as to decisions or the like concerning the means of executing work or the allocation of time,as the employer needs to leave a significant amount of the methods of conducting it and the allocationof time to the workers engaged in that work.
[ii] Scope of covered workers
Covered workers are those who have knowledge and experience for properly executing the relevant
work and must regularly engage in the relevant work. The scope of “those who have knowledge andexperience for properly executing the relevant work” may differ depending on types of work. Therefore,
it is necessary to concretely clarify workers' years of work experience and vocational qualifications inorder to specify the coverage.
[iii] Daily hours during which workers are deemed to have worked (deemed working hours)
Hours deemed as working hours must to be concretely resolved as daily working hours of covered
workers. It is impossible to agree the number of working hours on a weekly or monthly basis.
When setting deemed working hours, it is necessary to ensure that covered workers may be treatedreasonably by setting working hours at an appropriate level in view of the content of covered types ofwork and the wage and evaluation systems applicable to covered workers. Whether workers are treatedreasonably must be individually and specifically judged based on the circumstances of each workplace.
However, it is necessary to ensure that the treatment appropriate for applying the discretionary work
system, not the normal working hours system, is secured.
Deemed working hours must not necessarily be matched with the actual working hours for the
purpose of operating the management-related work system. For example, the “regular working hours”
and “regular working hours plus a certain amount of time” at each workplace may be set as deemed
working hours. In that case, however, it is necessary to ensure reasonable treatment by paying special
allowances to covered workers or otherwise raising the base salary of covered workers.
[iv] Concrete details of the measures to ensure health and welfare to be implemented according to thesituation of working hours of covered workers

64Even under the discretionary work system, employers are obliged by Article 66-8-3 of the Industrial
Safety and Health Act or other provisions to monitor the situation of working hours, and are required
to understand during which times and how long workers subject to the system could provide labor. The
methods of achieving this must be objective, including the use of timecard records, time records of
personal computers and other electronic devices used by covered workers, and other appropriate
methods.
Based on the situation of working hours monitored through the use of the methods mentioned above,it is necessary for employers to specifically resolve what measures to ensure health and welfare will betaken according to the working conditions of covered workers.
[v] Concrete details of measures to be taken to handle complaints raised by covered workers
Employers must resolve that they will take measures to handle complaints raised by covered workers,
as well as concrete details of such measures.
Employers must clarify the details of a service office to accept complaints, responsible personnel,
scope of complaints to be handled, and procedures and methods of solving complaints, etc.
[vi] Requirement for obtaining a worker’s consent to be covered by the system
A worker’s consent must be obtained from each worker and for each effective term of the relevant
resolution. It is appropriate to concretely specify in the resolution the effect that a worker’s consent
must be obtained in writing, as well as other procedures for obtaining it.
[vii] Prohibition of disadvantageous treatment to workers who gave no consent to be covered by thesystemEven if any worker refuses to give his or her consent to be covered by the system, that worker’s
assignment and treatment must not be disadvantageous on that ground.
[viii] Procedures for withdrawal of consent to be covered by the system(*)
When an employer brings a resolution, the employer must clearly indicate an office to which noticeof withdrawal is to be given and a person in charge, method of giving notice of withdrawal, and otherconcrete details.
(ix) Explanation to a labor-management committee about changes of the wage and evaluation systems
applicable to covered workers(*)
When an employer intends to change the wage and evaluation systems applicable to covered
workers, it is appropriate to explain details of the change to a labor-management committee in advance.
Even if it is difficult to provide explanations in advance, it is appropriate to give explanations about thechange without delay after the change.
[x] Effective term of resolutions adopted by a labor-management committee
The effective term of a resolution should preferably be no longer than three years. No automatic
renewal of the agreement will be allowed and a resolution must be brought again upon the expirationof the effective term.
[xi] Retention of records on the conditions of working hours, the status of implementation of themeasures mentioned in [iv] and [v], and consent and its withdrawal(*) for each worker during theeffective term of the committee resolution and for three years after the expiration of the term.

65

(2) Requirements for a labor-management committee[i]Half of the committee members must be appointed from among members of a labor union, or fromamong persons representing the majority of the workers (excluding managers and supervisors) in
the absence of a labor union, while designating their terms of office.

[ii] Meeting minutes must be prepared after each time a meeting is held and be preserved for three years.
Efforts must be made to disseminate the content of those minutes among workers of the workplace.
[iii] Rules must be established regarding convening of committee meetings, quorum, proceedings andother matters necessary for the operation of the committee.

(3) Reporting (the following reporting frequency applicable effective as of April 1, 2024)
Regarding the following matters, it is necessary to prepare a document in the prescribed form andsubmit it to the Director-General of the competent Labour Standards Inspection Office initially once
within six months from the beginning of the effective period of a resolution and subsequently once a year
(see the prescribed form on p. [69]).
[i]

Status of working hours of covered workers[ii] Implementation status of the measures to secure the health and welfare of covered workers[iii] Status of consents and withdrawals of consents (this item will be added on April 1, 2024)

66

Form No. 13 (related to Article 24-2-2, paragraph (4))
Labor insurance number
Prefecture

Authority inchargeCore number

Jurisdiction

Branch numberGrouped workplace number

Notice of agreement on a discretionary work system for professional work Corporate number

Name of businessType of business

Location of business (telephone number)

Effective term of the agreement
Fromto

Telephonenumber:Type ofoperation

Nature ofoperation

Number of
the relevant
workers

Regularworking hours
per day

Deemed working
hours prescribedin the agreement

Implementation status of the measures tosecure the health and welfare of workers

Method of ascertainingof working hours ofworkers

Measures to handle complaints fromworkers

Whether or not there is an agreement that an employer will give no concrete instruction to workers engaged in the covered types of work as to the means of conducting it and the allocation of time.

Available/Not Available

Whether or not there is an agreement that an employer must obtain a worker’s consent and must not dismiss or otherwise disadvantageously treat the worker who did not give his or her consent

Available/Not Available

Procedure for withdrawal of consent
Whether or not there is an agreement on retention ofrecords for each worker of the conditions of working hours of workers, the status of implementation of measures to ensure health and welfare of workers, the status of implementation of measures to handle complaints raised by workers, andconsent and its withdrawal during the effective term of the agreement and for three years after the effective period

Available/Not Available

Date of notification of the agreement on overtime work

Date of conclusion of the agreement

Date

Name of a labor union that is a party to the agreement (a labor union organized by the majority of workers of the workplace)or title () of a representative of the majority of workers() ) and name (Method of designating a party to the agreement (a representative of the majority of workers) ()
That the labor union that is the party to the above-mentioned agreement is the labor union organized by the majority of all workers of the workplace or that the representative of the majority of workers
who is the party to the above-mentioned agreement is the representative of the majority of all workers of the workplace.
☐ (Need to tick the box)
That the representative of the majority of the above-mentioned workers is not the person in the position of supervision or management specified in Article 41, item (ii) of the Labor Standards Act, and is the person elected through procedures such as
voting, show of hands or the like after clarifying election of a person who is a party to the agreement, etc. specified in the Labor Standards Act, not elected based on the intention of an employer.

☐ (Need to tick the box)
Date:
Director-General of the competent Labour Standards Office67

EmployerTitle
Name

Labor insurance
numberForm No. 13-2 (related to Article 24-2-3, paragraph (1))

Notice of resolution on a discretionary work system for management-related work
Type of business

Prefecture

Jurisdiction

Number of regularly employed workers

Branch numberGrouped workplace number

Effective term of the committee resolution

From
to

Telephone number:

Scope of workers (number of years of work
experiences, vocational qualifications, etc.)

Nature of operation

Core number

Corporate
numberLocation of business (telephone number)

Name of business

Authority
in charge

Number ofworkers

Daily deemed working hours to be determined by
the committee resolution

Implementation status of the measures to secure the health and welfare of workers

Method of ascertaining of working hours of workers
Measures to handle complaints from workers
Available/Not
Available

Whether or not there is an committee resolution that an employer must obtain a worker’s consent and must not dismiss or otherwise disadvantageously treat the worker who did not give his or her consent

Procedure for withdrawal of consent
When an employer changes the evaluation systems applicable to covered workers and the corresponding wage systems, whether or not there is an committee resolution on explanations about details of the change to the labor-management committee.

Available/Not Available

Whether or not there is a resolution on retention of records for each worker of the conditions of working hours of workers, the status of implementation of measures to ensure health and welfare of workers, the status of
implementation of measures to handle complaints raised by workers, and consent and its withdrawal during the effective term of the resolution and for three years after the effective period
Date of resolution adopted
Date of notification of the agreement on overtime work
MM/DD/YY
MM/DD/YY

Available/Not Available

Number of members of
the committee
Administration
regulations

Whether or not there are the administration regulations(Circle “Yes” if the matters enumerated in the right section
are included in the administration regulations)

Available/Not Available

Whether or not theconsent of thecommittee is required
for the administration
regulations• Matters regarding convocation, quorum and proceedings• Matters regarding an employer’s explanations about details of the evaluation systems applicable to covered workers and thecorresponding wage system• Matters regarding the assurance of proper administration in accordance with the purport of the system• The committee meeting to be held once every six months

Members representing workers appointed for a fixed term
Term of office

Name

Available/Not Available

Other members
Name

A resolution was adopted by a vote of the majority representing four-fifths or more of the above-mentioned members.
Name of the labor union that have appointed half of the committee members for a fixed term (labor union organized by the majority of workers at the workplace) (or title () and name ()) of a representative of the majority of workers

Method of selection of a person who has appointed half of the committee members for a fixed term (representing the majority of workers) ()

That the labor union that has designated half of members of the above-mentioned committee for a fixed term is the labor union organized by the majority of all workers of the workplace or that the representative of the majority of workers who has designated half of members of the above-mentioned committee for a fixed term is the☐ (Need to tick the box)

representative of the majority of all workers of the workplace.

That the representative of the majority of the above-mentioned workers is not the person in the position of supervision or management specified in Article 41, item (ii) of the Labor Standards Act, and is not the person elected through procedures such as voting, show of hands or the like after clarifying election of a person who is a party to the☐ (Need to tick the box)

agreement, etc. specified in the Labor Standards Act, not elected based on the intention of an employer.
That half of members of the above-mentioned committee are not the persons in the position of supervision or management specified in Article 41, item (ii) of the Labor Standards Act, and is not the person designated based on the intention of an employer.

MM/DD/YY
Director-General of the competent Labour Standards
OfficeEmploy Title
Name
er

68

☐ (Need to tick the box)

Labor insurance number
PrefectureForm No. 13 (related to Article 24-2-5, paragraph (1))

Authority
in charge

Jurisdiction

Core number

Branch numberGrouped workplace number

Corporate number

Report on a discretionary work system for management-related work

From

Reporting period

Nature of operation

Location of business (telephone number)

Name of businessType of business

Worker's survivingfamilyNumber ofworkers subject
to the system

Number of workers who
agreed(Number of workers who
withdrew agreement)

Telephonenumber:Status of one-monthworking hours of therelevant worker
LongestAverage
LongestAverage
LongestAverage
LongestAverage
LongestAverage
LongestAverage

MM/DD/YY

Title
EmployeNamer

To Director-General of the competent Labour Standards Office69

Method of ascertainingof working hours ofworkers(month and year) to (month and year)
Number of regularly employedworkers

Implementation status of the measures tosecure the health and welfare of covered
workers

VII.

Aggregation of Working Hours
Even when a worker works at multiple workplaces, working hours are to be aggregated for the applicationof the provisions concerning working hours. Cases where a worker works at multiple workplaces include cases
where a worker is employed by multiple employers.
Therefore, if a worker is employed by two or more employers and his/her aggregated working hours exceed
eight hours a day, premium wages for the excess portion are to be paid by an employer who had the worker
work in excess of the statutory working hours (Article 38, paragraph (1) of the Labor Standards Act).
* See "- Reference - Side Work and Extra Work" for detail.

70

Rest periods, days off, leave, etc.
I. Rest Periods
1. Length of Rest Periods
It is legally required to provide workers with rest periods during working hours so that they can recover fromphysical and mental fatigue accumulated while working for a certain length of time.
The length of rest period is determined by daily working hours and an employer must provide workers withthe following rest periods during working hours:[i] at least 45 minutes when working hours exceed 6 hours, and[ii] at least one hour when working hours exceed 8 hours(Article 34 of the Labor Standards Act).
Even when a workplace has a rule to limit daily working hours up to 8 hours and to give workers a 45-minuterest period, if daily working hours exceed 8 hours on a certain day due to the need for overtime work, theworkplace must give workers an additional 15-minute rest period.

2. Principle of Providing Rest Periods at the Same Time
In principle, rest periods must be provided to all workers at the same time during working hours.
However, for some types of business, providing rest periods to all workers at the same time may causeinconvenience to the general public, and therefore, as special provisions concerning rest periods under Article
40 of the Labor Standards Act, Article 31 of the Regulation for Enforcement of the Labor Standards Act
excludes the following businesses.
[i]Transport business[ii]
Commerce[iii]
Financial and advertising businesses[iv]
Screen motion pictures and theatrical performances[v]
Communication business[vi]
Health and hygiene business[vii]
Entertainment business[viii]
Businesses of public agencies
Additionally, if the scope of workers excluded from the application of this principle and methods to provide
rest periods to those workers are stipulated in a labor-management agreement, such workplace is exemptedfrom the principle of providing rest periods to all workers at the same time.
Article 41 of the Labor Standards Act provides that the provisions concerning rest periods of Article 34 of
the Act do not apply to:[i] persons engaging in business stipulated in item (vi) (excluding forestry) or item (vii) (excluding
livestock, sericultural, or fishery businesses) of Appended Table 1 of the Act,[ii] persons in positions of supervision or management or persons handling confidential affairs, regardlessof the type of business, and[iii] persons engaged in monitoring or in intermittent labor, for whom the employer has obtained
permission from the Director-General of the competent Labour Standards Inspection Office.
(See "Chapter 6: Exclusion from Application of Provisions on Working Hours, Rest Periods and Days
Off.")

71

3. Free Use of Rest Periods
A rest period is a time during which workers are guaranteed the right to separate themselves from their workin the middle of their working hours. This purport is clarified by the provisions to require employers to permit
workers to use the rest periods freely (Article 34, paragraph (3) of the Labor Standards Act).
To permit workers to use the rest periods freely means that employers are prohibited from restricting workers'
conduct during those periods and from placing workers under control for the purpose of having them fulfil
duties.
Therefore, if an employer orders a worker to stay at the workplace during a rest period for the purpose of
waiting on visitors or for preparing for an accidental event, the worker cannot use that time freely and it cannot
be said that the employer gives the worker a rest period.

II. Days Off
1. Principle of Weekly Days Off System
Employers must provide workers with at least one day off per week, in principle, but if it is difficult,employers may provide workers with 4 days off or more over any four-week period (Article 35 of the Labor
Standards Act).
Key points concerning days off are as follows.
(1) If employers provide workers with at least one day off per week or four days off or more per four-weekperiod, they are not required under the Labor Standards Act to make national holidays as regular days
off or to adopt a five-day week system. However, they need to pay attention to observe the statutory
weekly working hours as mentioned above (see "Chapter 4: Working Hours").
(2) Each worker's days off may be on different days, but an employer's failure to give at least one day off
per week to any worker constitutes a violation of Article 35 of the Labor Standards Act.
(3) Days off may be on any days of the week or may be on different days every week, but an employer's
failure to give at least one day off per week constitutes a violation of Article 35 of the Labor StandardsAct.
(4) Days off must be given on a calendar day basis (meaning a continuous 24 hours from 0:00 to 24:00), inprinciple.
If an employer has a worker work even for a short time, such as 30 minutes or one hour, during a day,that day is not counted as the worker's day off (if that day is the worker's regular day off, the employer
is considered to have had the worker do holiday work).
The Labor Standards Act does not require employers to specify workers' days off (to determine
regular days off), but it is preferable to specify days off in light of the purpose of days off, i.e., to enable
workers to recover from physical and mental fatigue regularly in a planned manner.

2. 4 Days Off per 4-Week Period System
When it is difficult, an employer is permitted not to adopt a weekly days off system if the employer provide
workers with four days off or more per four-week period as shown below (4 days off per 4-week period system)(Article 35, paragraph (2) of the Labor Standards Act).
In order to adopt this system, it is required to clarify the starting day of the four-week period and preferably
specify days off in the rules of employment or the like.
Additionally, consideration should be taken not to exceed the statutory weekly working hours.

72For example, under a 4 days off per 4-week period system, even if regular daily working hours are set
shorter at six hours, regular weekly working hours for a week without days off exceed the statutory weekly
working hours (40 hours). In order to avoid such overtime work, it is necessary to adopt a one-month variable
working hours system.
◎ Relationship between weekly days off system and 4 days off per 4-week period system and overtime work
6-hour work/day →○: Regular days off→

One day off/week

36H

36H

36H

36H

36H

36H

36H

• ・

・・

・・

・・

・・

・・

・・

36H
・・

○・・・・

○・・・・

○・・・・

○・・・・

○・・・・

○・・・・

○・・・・

○・・・・

(principle)

4 days off/4 weeks

36 hours/week on average

36 hours/week on average(variable)

Introduce a variable working hours system for a 4-week period↓Exceed 40h/W ↓Exceed 40h/W ↓Exceed 40h/W

6-hour work/day →○: Regular days off→

30H

30H

42H

42H

42H

36H

30H

・・

・・

・・・・・

・・・・・

・・・・・

・・

・・

・・

○○・・・

○○・・・

・・

・・

・・

○・・・・

○○・・・

○・・・・

Only 2 days off in 4 weeks
Only 1 day off in 4 weeks

Starting day→

Only 3 days off in 4 weeks
Decide the starting day of the 4-week periods
4 days off in 4 weeks

73

36H

3. Difference between Transfer of a Day Off and Provision of a Compensatory Day
OffWhen an employer has no choice but to have a worker work on a regular day off, the employer must secure
his/her day off by transferring it to another day.
Transfer of a day off is to exchange a regular day off with another day in advance, as shown in the following
figure, for example, to have a worker work on Sunday, a regular day off, and give him/her a day off on Thursday,a regular working day, instead.
In this case, an original day off becomes a working day and work on this day is not considered to be holiday
work (Kishu No.1397 of April 19, 1948; Kihatsu No.150 of March 14, 1988). However, when a day off istransferred to the following week and the working hours of the relevant week exceed the statutory weekly
working hours, the work for those exceeding hours falls under overtime work.
Example of transfer of a day off
Tue.

Wed.

Thu.

Fri.

Sat.

Day
off

workingdayworkingdayworkingdayworkingdayworkingdayworking
day

Sun.

Mon.

Tue.

Wed.

Thu.

Fri.

Sat.

workingdayworkingdayworking
day

Day
off

workingdayworkingday(Aftertransfer)Mon.

workingday(Beforetransfer)Sun.

On the other hand, in the case of a compensatory day off, which is given after having a worker work on a
day off, the fact that the worker worked on his/her day off does not change even if another day was later given
as a compensatory day off. Therefore, the abovementioned Public Notices state that a compensatory day off toexempt a worker from work on a specific working day as compensation for the worker's work on a day off does
not fall under the transfer of a day off.

< Difference and matters to note >Item
Meaning

Requirements

Wages

Transfer of a day off
To change a regular day off to a working day
and another working day to a day off inadvance

Provision of a compensatory day off
To give a day off on another day ascompensation for having a worker work on a
day off○ Civil grounds, such as that the rules of
employment have a clause for transfer ofdays off, are necessary.
○ A substitute day off must be specified.
* A substitute day off must be within thespecified four weeks (care must be taken sothat weekly working hours do not exceed
the statutory working hours).
○ Transfer of a day off must be communicatedto the worker by the day before.

○ Civil grounds, such as that the rules of
employment have a clause for provision ofcompensatory days off, are necessary.
○ Employers can provide compensatory days
off at their discretion.
* When work on a regular day off falls underwork on a statutory holiday, an agreement
under Article 36 of the Act or the like isrequired.

If an employer provides a substitute day off
in the same week as the original day off, theemployer only needs to pay normal wages forthe original day off and does not need to pay
wages for the substitute day off. (*)

Premium wages must be paid for work on a
day off.

* When a substitute day off is given in the following week or later, and working hours for the relevant week exceed the statutory
working hours, premium wages may need to be paid for the work for those exceeding hours.

74III. Annual Paid Leave
1. Eligibility for Annual Paid Leave
Eligibility for annual paid leave is as follows (Article 39 of the Labor Standards Act):[i]workers who have been employed continuously for 6 months from the day of their being hired,and continuously for one year thereafter; and[ii]

who have reported to work on at least 80% of the total working days for a certain period (Article

39 of the Labor Standards Act). An employer must grant annual paid leave of the statutory number of days inaccordance with the years of service to all workers satisfying these requirements.
When calculating the number of working days to judge whether a worker worked on at least 80% of the total,
the following needs to be included in working days as prescribed in the Labor Standards Act, etc.
•

A period during which a worker took a leave due to a work-related injury or disease•

A period of child care or family care leave under the Child Care and Family Care Leave Act•

A period during which a female worker before and after childbirth took a leave under Article 65 of the Labor

Standards Act•

A period during which a worker took an annual paid leave

2. Annual Paid Leave to be Granted
An employer must grant annual paid leave of the statutory number of days in accordance with the years ofservice (Table 1) to all workers satisfying the requirements mentioned in 1. above.
Table 1 Annual Paid Leave to be Granted (For workers who are required to work at least five days or at least 30
hours per week)
Years ofservice

0.5 years

1.5 years

2.5 years

3.5 years

4.5 years

5.5 years

6 years or
longerDays
granted10 days

11 days

12 days

14 days

16 days18 days

20 days

3. (Proportionally Granted) Annual Paid Leave for Part-Time Workers
Even in the case of part-time workers, if they have been employed continuously for 6 months from the dayof their being hired, and continuously for one year thereafter, and have reported to work on at least 80% of thetotal working days for a certain period, an employer must grant annual paid leave in accordance with their yearsof service.
Out of part-time workers whose regular weekly working hours are less than 30 hours, an employer is required
to grant annual paid leave in accordance with the number of actual working days (Table 2) (proportionally granted
annual paid leave) to[i] those whose regular weekly working days are four days or less,and[ii] those whose regular yearly working days are 216 days or less.
Regarding part-time workers, whose regular weekly working days are four days or less but regular weekly
working hours are 30 hours or longer, an employer must grant annual paid leave of the same number of days asthat of regular workers (Table 1).

75

Table 2 Proportionally Granted Annual Paid Leave
Regularweeklyworking
days

Regular yearlyworking days

0.5 years

1.5 years

2.5 years

3.5 years

4.5 years

5.5 years

6 years or
longer

4 days169-216 days

7 days8 days9 days10 days

12 days

13 days

15 days

3 days

121-168 days

5 days6 days6 days8 days9 days10 days

11 days

2 days73-120 days

3 days4 days4 days

5 days6 days6 days7 days1 day

48-72 days

1 day

2 days2 days2 days3 days3 days3 daysYears of service

4. Workers' Designation of Date to Take Annual Paid Leave and Employers' Rights
to Change Date Thus DesignatedAn employer must grant annual paid leave as designated by a worker except for cases of granting annual
paid leave systematically mentioned in 5. below. In other words, when a worker designates a certain date totake annual paid leave, the employer may not refuse such request of the worker.
However, if a worker's leave on the desired date may obstruct normal business operation, the employer may
change the date of the worker's paid leave (the right to change designated date of annual paid leave).
This right cannot be exercised only for insignificant reasons such as being a busy day or being shorthanded.
An employer may not designate a substitute date by him/herself.

5. Systematic Granting of Annual Paid Leave
Annual paid leave is basically granted on dates designated by a worker, but when a labor-managementagreement is concluded concerning systematic granting of annual paid leave, an employer may grant annual
paid leave on dates as specified in that agreement, while reserving five days for each worker's discretionary use.
In other words, annual paid leave up to five days must be granted on dates designated by workers but the rest
may be granted systematically by specifying dates in a labor-management agreement in advance.
Methods of granting annual paid leave systematically include the following.
[i]

At the same time by closing the workplace as a whole[ii]

By team on a rotating basis[iii] Individually based on a schedule of annual paid leave
Systematic granting is also effective from the viewpoint of encouraging workers to actively take annual
paid leave and enjoy leisure activities.
However, when granting annual paid leave at the same time as mentioned in [i] above, special measures need
to be taken for new recruits ineligible for annual paid leave yet or other workers entitled only to annual paid
leave shorter than the number of days to be systematically granted, such as granting special leave or increasing
the number of days granted as annual paid leave.

766. Granting of Annual Paid Leave on a Half-day Basis
Annual paid leave should be granted consecutively or separately, but the number of days granted as annual
paid leave is based on the number of working days, and an employer is not required to accept a worker's request
for annual paid leave on a half-day basis (Kishu No.1428 of July 7, 1949; Kihatsu No.150 of March 14, 1988).
However, in recent years, both labor and management have come to prefer annual paid leave on a half-day
basis. Therefore, while maintaining the principle of using the number of working days as the basis, it isconstrued permissible to adopt a system to grant annual paid leave on a half-day basis only when a worker
designates a date to take a half-day leave and the employer agrees and the system is operated appropriately
within a scope not hindering the original method of taking leave based on the number of working days (Kihatsu
No.33 of July 27, 1995).

7. Granting of Annual Paid Leave on an Hourly Basis
Apart from granting of annual paid leave on a half-day basis mentioned in 6. above, if a labor-managementagreement is concluded, annual paid leave may be granted or taken on an hourly basis up to five days a year
only when a worker wishes to do so (hereinafter referred to as "annual leave by the hour") (Article 39, paragraph(4) of the Labor Standards Act).
The matters to be specified in a labor-management agreement are as follows. Annual leave by the hour mustalso be stated in the rules of employment, in which matters concerning leave in general must be specified.

(1) Scope of workers covered under a system of annual leave by the hour
Decide the scope of workers. Exclusion of a part of the workers is permitted only when the "normal
operation of the business" is interfered with. It is not permitted to limit the scope based on the purpose of
taking annual leave, for example, limitation only to workers raising a child.

(2) Number of days of annual leave by the hour
Decide the number of days within five days. When there are any days carried over from the previous
fiscal year, the total number including those days carried over will be within five days.

(3) Number of hours corresponding to one-day annual leave
Decide the number of hours corresponding to one-day annual leave based on the number of regular
working hours. When regular daily working hours have any fractions, such as 7 hours and 30 minutes, thenumber must be rounded up to 8 hours a day.

(4) Unit of time other than the hour, if applicable
When the unit of time is not 1 hour, decide that unit (e.g., 2 hours).
An example of a labor-management agreement is as follows.

77Labor-Management Agreement on Annual Paid Leave on an Hourly Basis○○○○○, CEO of XX Co., Ltd., and ○○○○○, the representative of the workers, agreed as follows
concerning the granting of annual paid leave on an hourly basis.
(Scope of Workers)
Article 1 All workers are to be covered.
(Maximum Number of Days)
Article 2 The number of days for which annual paid leave may be acquired on an hourly basis is withineach worker's number of days granted as annual paid leave and up to five days.
(Number of Hours Corresponding to One-day Annual Paid Leave
Article 3 When acquiring annual paid leave on an hourly basis, a total of eight hours is to correspondto one-day annual paid leave.
(Unit of Time)
Article 4 When acquiring annual paid leave on an hourly basis, the leave should be acquired by thehour.
(Carryover of Annual Paid Leave on an Hourly Basis)
Article 5 Unused annual paid leave on an hourly basis may be carried over to the following fiscal year,
but the maximum number of days for which annual paid leave may be acquired on an hourly basis
in the following fiscal year is five days including the number of days carried over.
MM/DD/YY○○○○ Co., Ltd.
CEO, ○○○○○○○
Representative of the workers,○○○○○○○

Seal
Seal

8. Securing of Annual Paid Leave for Five Days per Year
Annual paid leave is to be granted at the timings requested by each worker, in principle. However, due toconsideration to others in the workplace or other reasons, workers often hesitate to take leave and the percentage
of granted leave actually taken remains low. Encouraging workers to take annual paid leave is one of thechallenges.
The Labor Standards Act was therefore amended, and since April 2019, employers of all companies came tobe required to have workers who are granted annual paid leave not less than ten days surely take leave for fivedays per year by designating the timings.
(1) Eligible workers
Workers who are granted annual paid leave not less than ten days
Supervisors and fixed-term workers are also included.
(2) Obligation to designate the timings to take leave for five days per year
An employer must have each worker take annual paid leave for five days within one year from the dayof granting him/her annual paid leave (the base date) by designating the timings to take leave.

78

(Example)

Entered the company on April 1, 2019
Annual paid leave granted on October 1, 2019 (for 10 days)
Leave for 10 days granted(the base date)

April 1, 2019:
Entered the company

October 1, 2019

September 30, 2020

The employer must have the worker takeannual paid leave for five days during the
one-year period from October 1, 2019, toSeptember 30, 2020.

(3) Method of designating the timings
An employer must hear the opinions of a worker when designating the timings.
Then, the employer must endeavor to respect such opinions so that the timings are in line with theworker's wishes to the extent possible.
Conceptual drawing of the designation of the timings

1. The employer hears the opinions of a worker.
(by any method, such as through an interview or by email, or by using a written schedule or othersystem for taking leave)(ii) "I want to takeleave on MM/DD."(i) "When do you want totake annual paid leave?"

Worker

Employer

2. The employer designates the timings based on the worker's opinions.

Worker(iii) "Then, take leave on
MM/DD."

Employer(4) Cases where designation of the timings for leave is not required
With regard to a worker who has already requested and taken annual paid leave for five days or more,
the employer does not need to and may not designate the timings for leave.
(*) The number of days of annual paid leave that each worker requests and takes discretionally and thenumber of days of annual paid leave granted to him/her by designating dates in a planned manner
under a labor-management agreement can be deducted from these five days per year which an
employer is obliged to grant to each worker by designating the timings.

9. Carryover and Purchase of Annual Paid Leave
Annual paid leave expires in two years from the day upon which it is granted. Any days of annual paid leave
not used within that year are carried over to the following fiscal year (Article 115 of the Labor Standards Act).
Furthermore, Article 39 of the Labor Standards Act provides for that an employer “must grant” paid leave.
As a result, if an employer purchases workers' annual paid leave in advance and does not allow them to takeleave, such act constitutes a violation of the Labor Standards Act.

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10. Wages to be Paid for Annual Paid Leave
An employer must pay any of the following to a worker who has taken annual paid leave, as prescribed in
the rules of employment or other agreements.
[i] Average wage
The amount obtained by dividing the total wages for the last three months (excluding special wages andbonuses) by the number of days during that three-month period, in principle (see "Chapter 8: VIII. Average
Wage").
[ii] Normal wages
The amount paid by deeming that the worker worked as usual on the relevant day[iii] The amount of standard daily remuneration under the Health Insurance Act (only when prescribed in alabor-management agreement) The most common method is to pay normal wages as mentioned in [ii].
An employer is not allowed to give workers who have taken annual paid leave disadvantageous treatment
such as wage reduction (Article 136 of the Labor Standards Act).

11. Annual Paid Leave Management Book
An employer must prepare a book to manage annual paid leave for each worker (a document clarifying thetimings and dates for leave and the base date for each worker) and preserve it during the period of the relevant
leave and for three years after the end of that period. (An annual paid leave management book may beincorporated into the roster of workers or the wage ledger. It is also permitted to manage workers' annual paid
leave on a system after putting in place a mechanism to enable data output at any time.)80IV. Systems for Leave and Absence from Work, Guarantee of Civil Rights
1. Systems for Leave and Absence from Work
Companies may put in place original leave systems, in addition to the statutory systems for leave and absencefrom work.
Representative systems include those for sick leave and congratulatory or condolence leave (for marriage,
childbirth, death of a relative, etc.). In recent years, some companies introduce unique leave systems, such as'refresh leave' and anniversary leave.
When a company has introduced these leave systems, the details thereof must be clarified in the rules of
employment (mandatory information to be stated in the rules of employment), and the company must clearly
determine eligible workers, the number of days to be granted as leave, whether it is paid leave or not or othermatters.
There are no legal rules concerning whether the following statutory leave and holidays should be paid or not,and the details need to be decided independently in the rules of employment.
[i] Maternity leave before and after childbirth (Article 65 of the Labor Standards Act: If a female worker who
is expected to give birth within six weeks (or 14 weeks in the case of multiple pregnancy) requests leave, an
employer is not allowed to make her work, and an employer is also prohibited from making a female worker
work within eight weeks after childbirth. However, if a female worker who gave birth not less than six weeks
ago makes a request, an employer is allowed to assign her with work permitted by a doctor.)[ii] Menstrual leave (Article 68 of the Labor Standards Act: If a female worker for whom work during themenstrual period would be especially difficult requests leave, an employer may not make the female worker
work during the menstrual period.)[iii]Child care leave (Article 5 of the Child Care and Family Care Leave Act: A worker (irrespective of gender)
can take child care leave for his/her child for a period as he/she requests until the child reaches one year ofage. If there are special circumstances, a worker can take child care leave until the child reaches two yearsof age.)Parental leave (fathers' child care leave) (Article 9-2 of the Child Care and Family Care Leave Act: A maleworker can take parental leave for up to four weeks within eight weeks after childbirth, separately from childcare leave.)[iv] Family care leave (Article 11 of the Child Care and Family Care Leave Act: If any of a worker's spouse,
parents or children (including grandparents, siblings and grandchildren as their equivalents), or the spouse's
parents is in need of regular nursing care for two weeks or longer due to an injury, disease or mental or
physical disorder, the worker can take leave to provide care for that family member.)[v] Sick/injured child care leave (Article 16-2 of the Child Care and Family Care Leave Act: A worker cantake sick/injured child care leave by making a request.)[vi] Nursing leave (Article 16-5 of the Child Care and Family Care Leave Act: A worker can take nursing leaveby making a request.)[vii] Leave for child care-related purposes (Article 24 of the Child Care and Family Care Leave Act: An
employer is obliged to make efforts to provide leave that workers can use for child care-related purposes.)

2. Leave in Lieu of Premium Wages (Substitute Leave)
If an employer has had workers work overtime for 60 hours or more per month, in excess of the statutory
working hours, the employer may grant paid leave (substitute leave) under a labor-management agreement, forthe purpose of preventing especially long overtime work, instead of paying them premium wages at a statutory
raised premium wage rate (50% or more) (Article 37, paragraph (3) of the Labor Standards Act).

< Matters concerning substitute leave to be specified in a labor-management agreement >A.

Calculation method of the number of hours to be granted as substitute leave (Article 19-2 of theRegulation for Enforcement of the Labor Standards Act)
A premium wage must be 50% or more when a worker has not taken substitute leave, and must be
25% or more when a worker has taken substitute leave. These rates need to be clarified in the rules of
employment.

81

Number of hours of substituteleave

Conversion
factorB.

＝＝（

Number of hoursof overtime work
per month

A premium wage rate in acase where a worker has nottaken substitute leave(50% or more)－ 60 hours ）×－

Conversion
factorA premium wage rate in acase where a worker hastaken substitute leave(25% or more)

Unit of substitute leave (Article 19-2 of the Regulation for Enforcement of the Labor Standards
Act)
Substitute leave is to be on a daily or half-day basis from the perspective of providing workers with
opportunities to get rest by granting leave in an aggregate unit. On a daily basis means to be based on
workers' regular daily working hours and on a half-day basis means to be based on the half thereof.
However, the unit of a half day may not strictly be half of the regular daily working hours and should
be defined between labor and management.
It is also possible to grant substitute leave in combination with annual paid leave on an hourly basis.

C.

Period during which substitute leave can be granted (Article 19-2 of the Regulation for Enforcementof the Labor Standards Act)
Labor and management should negotiate and agree on the period within two months from the day
following the last day of the month in which overtime work exceeded 60 hours from the perspective ofgranting leave to workers to get rest within a period close to the month in which they worked overtime
for especially long hours. When overtime work exceeded 60 hours for two months in a row, it is possible
to grant substitute leave collectively for the previous month and the month before.

D.

Substitute leave date and premium wage payment date
The following must be specified from the perspective of determining the wages early.
[i]

Method of deciding the date to take substitute leave based on workers' will
Workers' intentions are to be confirmed within a period as short as possible, but whether to takesubstitute leave or not is up to workers.

[ii]

Date to pay premium wages for overtime work in excess of 60 hours per month
When a worker intends to take substitute leave, the employer must pay premium wages currently

obliged (at a rate of 25% or more) on the date to pay normal premium wages.
If a worker had intended to take substitute leave but could not, the employer must pay premium wages
for the working hours corresponding to that substitute leave on the date to pay wages for the period forwhich it became clear that the worker would not be able to take substitute leave.
When a worker does not intend to take substitute leave or when a worker's intention cannot be
confirmed, the employer must pay premium wages at a rate of 50% or more on the date to pay normal
wages.
A labor-management agreement may also include the provisions to the effect that if a worker takes
substitute leave after receiving the payment of premium wages, the employer may make up for theexcess of those wages.
E.

Relationship between substitute leave and annual paid leave
Substitute leave is different from annual paid leave.
Days on which a worker took substitute leave are not included in the total number of working days
which serves as the base for calculating the number of days to be granted as annual paid leave.

82

Agreement on Substitute Leave in Lieu of the Payment of Premium
Wages for Overtime Work in Excess of 60 Hours per Month* This example is based on the premise that regular daily working
hours are 7 hours and 45 minutes (from 8:15 to 17:00 with a onehour break from 12:00 to 13:00).

○○ Co., Ltd. and ○○ Labor Union agreed as follows concerning substitute leave to be granted inlieu of premium wages (hereinafter "substitute leave") for overtime work in excess of 60 hours permonth (meaning a unit period for wage payment; hereinafter the same).
(Relationship between Substitute Leave and Premium Wages)
Article 1 (1) A worker who has worked overtime in excess of 60 hours per month may take substituteleave for the excess portion of the working hours in lieu of premium wages for that portion as
specified in this agreement.
(2) When a worker has taken substitute leave, the company does not pay premium wages for the portion
exceeding 60 hours.
(Calculation Method of the Number of Hours to be Granted as Substitute Leave)
Article 2 The number of hours to be granted as substitute leave is calculated as follows.
The number of hours ＝ (Monthly hours of overtime work - 60 hours) × 0.25
(Unit of Substitute Leave)
Article 3 (1) Substitute leave is to be taken on a daily or half-day basis.
(2) A half-day leave in the morning is counted as 3 hours and 45 minutes and a half-day leave in theafternoon is counted as 4 hours.
(3) When a worker wishes, substitute leave on a daily or half-day basis may be taken in combination
with annual paid leave on an hourly basis (must separately conclude an agreement) as a one-day
leave, half-day leave in the morning or half-day leave in the afternoon.
(Period during which Substitute Leave may be Taken)
Article 4 (1) Substitute leave may be taken within two months from the day following the last day ofthe month in which overtime work exceeded 60 hours.
(2) The numbers of hours to be granted as substitute leave may be totaled for two consecutive months
in which overtime work exceeded 60 hours.
(3) When the sum of the hours totaled as mentioned in the preceding paragraph is less than 3 hours and
45 minutes, the relevant worker may not take substitute leave. However, this does not apply when aworker wishes to take substitute leave in combination with annual paid leave and becomes eligible
for leave on a daily or half-day basis.

83

3. Guarantee of Civil Rights
Separately from days off, leave, and absence from work mentioned so far, an employer must not refuse aworker's request for time necessary to exercise the right to vote and other civil rights or to perform public duties
during working hours (Article 7 of the Labor Standards Act).
However, an employer may change the time thus requested by a worker as long as such change does nothinder the exercise of those rights or the performance of those public duties.
There are no legal rules concerning whether such time for exercising civil rights should be paid or not, andthe details need to be decided independently in the rules of employment.
Major civil rights are as follows.
[i]

Right to vote and right to hold office[ii]

Right to participate in national review of Supreme Court justices[iii]

Right to participate in local referendum for special acts

[iv]

Right to participate in national vote for constitutional revision[v]

Right to file a direct petition from a resident[vi]

Right to apply for registration in the pollbook[vii]

Public duties as a candidate saiban-in, saiban-in, or alternate saiban-in

The saiban-in system started on May 21, 2009, and duties as a saiban-in, etc. fall under public duties specified
in Article 7 of the Labor Standards Act. Accordingly, if an employee makes a request, the employer must provide
him/her with time necessary to perform the relevant duties.

< Reference > Court proceedings under the saiban-in system
Participation of saiban-ins

RulingDeliberation(between saiban-ins and judges)(determine guilt or innocence and punishments)

Proceedings(examination of evidence and oral arguments
for fact finding and sentencing)

Selection of saiban-ins(6 saiban-ins and 3 judges, in principle; or 4
saiban-ins and 1 judge in certain cases)(for a speedy and planned trial)

Pretrial conference procedure (preparation)

Prosecution

Investigation84

< Reference > Selection and appointment of saiban-ins(1) A notice that the names have been registered in a list of saiban-in candidates is given to listed persons.
(2) Candidate saiban-ins are selected by lot for each case from among the list (by six weeks prior to the trial, in
principle).
A notice of the date for appointment procedures (a writ of summons) is sent together with questionnaires toselected candidate saiban-ins (for cases that can be concluded in five days or less, a notice is generally sent toapproximately 70 candidates for each case).
(3) On the date for appointment procedures, six saiban-ins, in principle, are appointed.
Candidate saiban-ins who have not expressed their intention to decline when answering the questionnaire or
whose intention to decline was not confirmed with their answers to the questionnaires are supposed to come tothe court on the date for appointment procedures.
In the end, six saiban-ins, in principle (and some alternate saiban-ins, if necessary), are appointed for each case.

85

Exclusion from Application ofProvisions on Working Hours, Rest Periods andDays OffI. Exclusion from Application of Provisions on Working Hours, Rest
Periods and Days Off
The provisions of the Labor Standards Act concerning working hours, rest periods and days off, which havebeen explained so far, do not apply to "persons in positions of supervision or management," "persons handlingconfidential affairs," or "persons engaged in monitoring or in intermittent labor" (Article 41 of the Labor
Standards Act 41).
However, the granting of annual paid leave and premium wages for work at night are also applied to these
persons.

1. Persons in Positions of Supervision and Management (Managers andSupervisors)
As persons in positions of supervision and management need to work in an integrated manner with thebusiness operator, regulations concerning working hours do not apply to these persons. Who falls undermanagers and supervisors in the workplace is to be judged based on the actual circumstances, irrespective ofjob titles.
Judgment criteria are as follows.

Free from restrictions
concerning when to cometo or leave the workplace

ExampleDivision chief
Plant manager, etc.

ExcludedCriteria

Mangers andsupervisors

In an integral position withthe business operator inlabor management

Properly
treatedinaccordance with the job
title

Public Notices issued by the Health and Welfare Ministry state that "the term, 'persons in positions ofsupervision or management,' generally refers to a division chief, plant manager, or other persons who have an
integrated position with the business operator in deciding working conditions or otherwise managing workers,
and the scope should be judged based on the actual circumstances, irrespective of persons' job titles,"specifically based on the following ideas (Hatsuki No.17 of September 13, 1947; Kihatsu No.150 of March 14,1988).

(1) Principle
Legally prescribed working conditions, such as working hours, rest periods and days off, are minimum
standards. When an employer has workers work beyond these standards, the employer must pay premium
wages as prescribed by the law. This is the very basic principle common to all workers. Persons with job
titles who were appointed by companies from the necessity of personnel management or based on
operational policies are not always deemed to be managers or supervisors and exceptional treatment is notnecessarily permitted.

86

(2) Purport of exclusion from application
Out of persons with managerial job titles, only those who have significant duties and responsibility
requiring them to work beyond the regulations concerning working hours, rest periods and days off andwho are actually in the position not suited to such regulations are excluded from the application under
Article 41 of the Labor Standards Act. Therefore, the scope of excluded persons must be limited to that
extent.

(3) Judgment based on the actual circumstances
In general, companies manage personnel in accordance with titles corresponding to the details of theduties and the authority, etc. (hereinafter referred to as "job titles") and ratings based on experience andability, etc. (hereinafter referred to as "qualifications"). However, when determining the scope of the
managers and supervisors, a focus should be placed on the details of duties, responsibility, authority andworking patterns of respective persons, irrespective of their qualifications and job titles.

(4) Consideration to treatment
In addition to the above, wages and other granted treatment are important factors to be taken into
consideration when judging whether a person falls under a manager or supervisor. In this case, attention
should be paid to whether a person receives regular fixed remuneration, such as basic wages and executive
allowances, suited to the position, the payment rates of bonuses or other lump-sum payments, and whether
any preferential measures are taken for a person compared with other ordinary workers regarding basic
wages, which serve as the base for calculating lump-sum payments, or other factors. However, even if
some preferential measures are taken in comparison with other ordinary workers, a person having a job
title without substance is not included in a manager or supervisor.
Regarding the issue of nominal managers and supervisors, the judgment rendered on the McDonald's
Japan case (Tokyo District Court on January 28, 2008) attracted social attention. In response to thisjudgment, the Ministry of Health, Labour and Welfare issued a Public Notice (Kihatsu No.0909001 of
September 9, 2008) and presented "concrete criteria for judging whether a person falls under a manager orsupervisor in the multi-store retail and restaurant businesses, etc." (Concrete criteria are as shown in thefollowing table.)87

Concrete criteria for judging whether a person falls under a manager or supervisor in the multi-store
retail and restaurant businesses, etc.
With regard to the "details of the duties, responsibility and authority," "working patterns," "wages and other treatment"of managers and supervisors, which were presented in Hatsuki No.17 of September 13, 1947, and Kihatsu No.150 ofMarch 14, 1988, characteristic factors to be taken into consideration when judging whether a shop manager, etc. can bedeemed as a manager or supervisor are compiled as follows, in light of the actual circumstances of multi-store retailand restaurant businesses, etc.
Significant factors that deny the nature as a manager
or supervisor

Reinforcing factors[i]
Details of theduties,responsibility andauthority

Have no responsibility and authority inemploying part-timers[ii] Dismissal of part-timers is not included inassigned duties and is substantially uninvolved[iii] Evaluation of subordinates is not included inassigned duties and is substantially uninvolved[iv] Have no responsibility and authority in preparing
a shift roster and ordering overtime work[i]
Working patterns

Subject to disadvantageous treatment, such as
wage cut and negative evaluation due to beinglate or leaving earlier[i]

Forced to work long hours, having substantiallylittle discretion over working hours[ii] Mostly working in a pattern similar to subordinates
who are subject to regulations on working hours[i][i]Wages and othertreatment

Wages converted into hourly rates are lower thanthose of part-timers.
[ii] Wages converted into hourly rates are lower than
the statutory minimum wage

Preferential measures such as executive allowances
are not enough in consideration of the fact thatpremium wages are not paid, and thus the company
fails to sufficiently protect the relevant worker.
[ii] The total of the annual wages is equal or even lower
than that of ordinary workers.

Judge comprehensively by also taking into consideration other factors

2. Persons Handling Confidential Affairs
Persons handling confidential affairs do not necessarily refer to persons who handle confidential documents,
but include secretaries and other persons whose duties are closely connected with activities of the business
operator or managers and supervisors and who are not subject to strict regulations on such matters as times tocome to and leave the office.

3. Persons Engaged in Monitoring or in Intermittent Labor(1) Monitoring labor
Labor in which a worker is basically supposed to perform monitoring duties at a department andnormally has little physical or mental strain, such as a job of a gate keeper(2) Intermittent labor
Labor in which a worker is basically supposed to work intermittently and that has longer waiting timeand shorter working time than ordinary labor, such as a job of a resident assistant or cook at a dormitory(3) Permission of the Director-General of the competent Labour Standards Inspection Office
As working patterns vary for both (1) and (2) above, it is not appropriate to let employers makejudgments in a subjective manner. Accordingly, in order to exclude persons engaged in labor mentioned in(1) or (2) from the application of the provisions on working hours, rest periods and days off, it is necessary
to obtain permission from the Director-General of the competent Labour Standards Inspection Office.

II. Exclusion from Application of Provisions on Working Hours, Rest
Periods, Days Off and Premium Wages for Work at Night88

• High-level professional system(1) High-level professional system
The high-level professional system, which targets workers with advanced expert knowledge, etc. for whom
the scope of duties is clear and who satisfy requirements for a certain level of annual income, excludes such
workers from application of provisions of the Labor Standards Act concerning working hours, rest periods,
days off and premium wages for work at night, on the premise of a resolution made by a labor-management
committee and the consent of workers themselves, by obliging employers to take measures to secure days
off not less than 104 days per year and measures to secure the health and welfare of such workers inaccordance with the conditions of the time requiring health management.
(2) Coverage of the high-level professional system
A. Covered workers(A) Their duties are clearly determined based on an agreement with the employer.
(B) The amount of annual wages expected to be surely paid by the employer is not less than 10.75 million
yen.
(*) Only workers solely engaging in determined duties on a regular basis are covered and those also engaging
in other duties on a regular basis are excluded.
B. Covered duties(A) Workers need to engage in determined duties without receiving specific instructions from the employer
regarding working hours.
(B) Concrete duties covered under the system are as follows (see the leaflet "Easy-to-UnderstandExplanations of the High-level Professional System" for examples of covered and uncovered duties).
(i)

Development of financial instruments using knowledge of financial engineering, etc.

Create and update probabilistic models, etc. using knowledge of financial engineering, statistics, mathematics,
economics and the like with the aim of gaining profits more efficiently while reducing transaction risks, and develop
new financial instruments by employing techniques of conducting simulations based on such models and verifying
the results thereof(ii)

Asset management (including instructions; hereinafter the same) or sale and purchase or othertransactions of securities, especially based on investment decisions, or sale and purchase or othertransactions of securities based on investment decisions on one's own accountConduct asset management or sale and purchase or other transactions of securities based on one's own investment
decisions fully utilizing knowledge of the financial business(iii)

Analysis and evaluation of trends of securities markets or value of securities and provision of advice
based on such analysis and evaluation

Conduct analysis by applying advanced expert knowledge on securities and analytical techniques, make evaluations
based on the results of such analysis, and provide advice on investment in securities to fund managers based on
one's own analysis or evaluation results(iv)

Investigation or analysis of significant matters on a customer's business operations and considerationand provision of advice on such matters based on investigation or analysis results

Investigate or analyze business operations of a company, make proposals to the company concerning operational
reforms directly linking to its management strategies, such as restructuring of business and services and reforms of
personnel or other internal systems, and offer advice and support for the achievement thereof(v)

Research and development of new technologies, products or services

Conduct research and development of new technologies and build a management method by introducing newtechnologies, and conduct research and development of new materials and new models and services, for the purposeof encouraging persons with professional and scientific knowledge or technologies to further obtain new knowledge
or make technological improvements, thereby having them create new value

89

(3) Procedures for introducing the high-level professional system
Step 1: Establish a labor-management committee
Step 2: Make a resolution at the labor-management committee

Step 3:

Submit the resolution to the Director General of the competent Labour Standards Office

Step 4: Obtain consent of the relevant worker in writing
Step 5: Have the worker engage in the relevant duties

Step 6:

Expiration of the validity period of the resolution (when continuing the period, back to Step 2)(4) Measures to secure good health of workers covered under the high-level professional system
An employer must take the following measures (i) to (iv) for workers covered under the high-levelprofessional system.
(i) Ascertain thetime requiring healthmanagement

The employer must objectively ascertain the time requiring health management (timeduring which a worker was in the workplace + time during which a worker worked
outside the workplace) based on each worker's time card or hours of having used a PCor other objective data(ii) Secure days off

The employer must grant a worker not less than 104 days off per year, or not less thanfour days off for a four-week period.

(iii) Selective
measures

The employer must decide measures equivalent to any of the following as a resolution
and implement them:
1. Secure an interval (not less than 11 hours) between work shifts and limit thefrequency of night work (four times or less per month)
2. Set the upper limit for the time requiring health management (The total of the
portions in excess of 40 hours per week must be 100 hours or less per month or 240
hour or less per three months.)
3. Grant a two-week-long leave at least once per year (or a one-week-long leave on
two occasions, upon a worker's request)
4. Conduct an occasional health checkup (for workers for whom the total of the
portions of the time requiring health management in excess of 40 hours per week
exceeded 80 hours per month and those who made a request)(iv) Measures tosecure workers'
health and welfare inaccordance with theconditions of healthmanagement time

The employer must decide any of the following measures as a resolution and implementthem:
1. Any of the selective measures mentioned in (iii) above (other than those decided asa resolution)
2. Provide an interview and guidance by physicians
3. Grant substitute days off or special leave
4. Establish an office to offer counseling on mental and physical health problems
5. Conduct personnel transfers appropriately
6. Provide advice or health guidance by industrial physicians, etc.

(*) Guidelines were formulated in order to secure proper working conditions for workers covered under the highlevel professional system. Members of a labor-management committee who make a resolution must ensurethat the content of their resolution complies with the Guidelines. See the Guidelines upon introducing thesystem at each workplace.

90Overtime Work and Work on Days Off
I. Overtime Work and Work on Days Off
1. Overtime Work and Work on Days Off(1) Overtime work
To have workers work in excess of the statutory daily or weekly working hours(2) Work on days off
To have workers work on a statutory day off (one day off per week or any of the four days off in a fourweek period)

2. When Concluding an Agreement on Overtime Work and Work on Days Off (Socalled Agreement under Article 36)(1) Unless an employer concludes a labor-management agreement in writing with a representative ofworkers and submits the written agreement to the Director-General of the competent Labour
Standards Inspection Office, the employer may not have workers work overtime in excess of thestatutory working hours within the scope stipulated in the agreement or have workers work on a
statutory day off (Article 36 of the Labor Standards Act). For the method of selecting a representativeof workers for concluding an agreement under Article 36, see "Chapter 14, IV. Hearing of theOpinions from a Representative of Workers."(Note) Even if an agreement under Article 36 has been concluded, it is generally necessary to specify
concrete grounds permissible for having workers work overtime in the rules of employment, acollective agreement or an individual labor contract, etc. in order to force workers work overtime.
Even under an agreement with special clauses, an employer is not allowed to have minors aged under
18 work overtime or on days off.
(2) An agreement under Article 36 must be concluded for one day, one month, and one year. Additionally,an agreement may also be concluded for a period exceeding three months but less than one year.
The Labor Standards Act does not provide for the upper limit for daily hours of overtime work to be
specified in an agreement under Article 36, except for work particularly harmful to health (up to two hours).

(3) Until recently, upper limit (so-called upper limit for working hours) for overtime work to be specified
in an agreement under Article 36 were determined by a Public Notice of the Minister of Health,Labour and Welfare, but it was possible for an employer to have workers work overtime up to thehours specified in an agreement under Article 36 even beyond those upper limit 36 by concluding anagreement under Article 36 with special clauses, when special circumstances that would temporarily
require such overtime work were expected.

91

(4) Upper limits for overtime work
Conceptual drawing of
regulations concerning
the upper limits(Before amendment)(After amendment)
Upper limits under law (special
provisions; up to 6 months per year)

No upper limits(up to 6 months
per year)✓ 720 hours per year
✓ 80 hours on average for multiple months*✓ Less than 100 hours per month** Including work on days off

Upper limits under Public
Notice of the Minister(administrative guidance)

Upper limits under law(in principle)✓ 45 hours per month✓ 360 hours per year

✓ 45 hours per month✓ 360 hours per year

Statutoryworking hours✓ 8 hours per day✓ 40 hours per week

1 year = 12 months

Through the 2018 amendment resulting from the Work Style Reform-related Act, upper limits forovertime work were legally determined as 45 hours per month and 360 hours per year and it was madeimpermissible to exceed these limits unless there are any temporary special circumstances.
Even under temporary special circumstances and where there is a labor-management agreement (special
clauses), the following must be observed.
Annual total hours of overtime work do not exceed 720 hours.
Monthly total hours of overtime work and work on days off do not exceed less than 100 hours.
Monthly averages of the total hours of overtime work and work on days off for the periods of 2 months,
3 months, 4 months, 5 months, and 6 months all do not exceed 80 hours.
Monthly total hours of overtime work may exceed 45 hours for up to six months per year.
Punishment (imprisonment for not more than 6 months or a fine not more than 0.3 million yen) may
be imposed for a violation of any of the above.
(Note)

Irrespective of whether an agreement contains special clauses or not, monthly total hours ofovertime work and work on days off must be less than 100 hours and monthly averages for the periodsof 2 months to 6 months must not exceed 80 hours throughout the year.
(*) For example, even if monthly overtime work totals less than 45 hours and special clauses are notused, when the overall monthly total exceeds 100 hours (e.g., overtime work totaling 44 hours andwork on days off totaling 56 hours), it falls under a violation of law.
(5) The upper limits will be applied to the businesses and services that were previously given the grace
period or exempted on and after April 1, 2024.
The upper limits on overtime work will be applied to the following businesses and services as is thecase with all businesses and services, except for certain special provisions.

92Special provisions to be applied on and after April 1, 2024

Businesses/services

Same as is the case with general industries on and from April 1, 2024.
Construction

No provisions requiring monthly hours of overtime work and work on days off of less than
100 hours/monthly averages of less than 80 hours will apply to reconstruction and recovery
projects after disasters

Driving of
automobiles

Annual overtime work hours : 960 hours or less
* Binding hours and intervals are separately specified in the Public Notice of the Standards for
Improvements of Working Hours, etc. of Automobile Drivers
Overtime work and work on days off : Less than 100 hours per month*,
960 hours or less (general practitioners)
or 1,860 hours or less (emergency physicians,

Physiciansclinicians, specialist residents, etc.) per year
*Monthly upper limit of 100 hours is not applied when face-to-face encounter guidance isimplemented.

Research and development of new technologies and products, etc. are exempted from the application of
the upper limits.

93

(6) Effective term
An effective term must be determined for an agreement under Article 36. However, as the covered
period is limited to one year, an effective term should naturally be one year at the shortest, in principle.
It is preferable to set an effective term to be one year, as an agreement under Article 36 needs to bereviewed periodically.
< Matters to be decided by an agreement under Article 36 >When there is a need to have workers work overtime or on days off, an employer must agree on the following
matters with workers and submit a written notification of an agreement under Article 36 (in Form 9) to the
Director-General of the competent Labour Standards Inspection Office.
Matters that need to be agreed in a new agreement under Article 36
Cases where the employer may extend working hours or have workers work on a day off
Scope of workers for whom the employer may extend working hours or order work on a day off
Covered period (limited to one year)

Starting date for the one year

Effective term

Number of working hours that the employer may extend or number of days off on which the employer
may have workers work per day, per month, and per year during the covered period
The total of overtime work and work on days off is to satisfy the following requirements:✓Monthly total hours are less than 100 hours.
✓Monthly averages for the periods of 2 months to 6 months do not exceed 80 hours.

When there is a need to have workers work overtime in excess of the principle upper limits for overtime
work (45 hours per month and 360 hours per year) under temporary special circumstances, an employer must
further agree on the following matters with workers and submit a written notification of an agreement under
Article 36 (in Form 9-2) to the Director-General of the competent Labour Standards Inspection Office.
Matters that need to be agreed in a new agreement under Article 36
When exceeding the upper limits

In the case where there is a need to have workers work in excess of the upper limits on a temporary
basis,✓Monthly total hours of overtime work and work on days off (less than 100 hours)✓Annual total hours of overtime work (720 hours of less)Number of times where overtime work in excess of the upper limits is permitted (6 times or less per
year)
Cases where the employer may have workers work in excess of the upper limits
Measures to secure the health and welfare of workers to be engaged in work in excess of the upper
limitsPremium wage rates for work in excess of the upper limits

Procedures for having workers work in excess of the upper limits
During the period for transitional measures, the former regulations remain applicable.

943. Cases of Extraordinary Need Due to Disasters, etc.
If there is an extraordinary need due to a disaster or other unavoidable events, employers may temporarily
make workers work overtime or on days off to the extent that is needed (Article 33 of the Labor Standards Act).
However, this is only an exception upon a disaster or other unavoidable events and is not permitted only on
the grounds of being busy or on other normally predicted grounds.
Additionally, in this case, an employer must obtain permission from the Director-General of the competentLabour Standards Inspection Office in advance, or when it is urgent and an employer does not have time toobtain the permission, he/she must file a notification ex post facto without delay.
This provision concerning cases of extraordinary need also applies to minors, and an employer may haveminors work overtime, on days off or at night to the extent that is needed.

95

WagesI. Definition of Wages
Article 11 of the Labor Standards Act defines wages as "the wage, salary, allowance, bonus and all otherkinds of payment made from an employer to a worker as remuneration for labor, regardless of the name whichsuch payment is given."
In other words, payments satisfying the following two requirements all fall under the category of wages,
irrespective of their name:[i] paid from an employer to a worker; and[ii] paid as remuneration for labor.
Retirement allowances for which conditions for payment are clarified in the rules of employment, etc. are also
included.

Paid from an employer as remuneration for labor
provided by a worker with employment dependency(Examples)

Welfare facilities

Special payment for
marriage, death, etc.

Not as wages

Concrete
criteria

Wages

Optional andbeneficial
payment

Payment in kind, suchas lending of housing,provision of meals

Whether they
are included incompany's
equipment

Uniforms, work
clothes, travel
expenses, etc.

If conditions for thesepayments are clarified
in a collective
agreement or labor
contract or in therules of employment,
etc., or thesepayments are clearlyspecified as working
conditions, they areincluded in wages

II. Decision of Wages
How to decide wages and concrete amounts are to be basically decided freely based on an equal standing oflabor and management, but the following points need to be noted.
[i] Discriminatory treatment by reason of the nationality, creed or social status of a worker is prohibited(Article 3 of the Labor Standards Act).
[ii] Discriminatory treatment of women by reason of sex is prohibited (Article 4 of the Labor Standards Act).
[iii] The amount of wages must not be set below the minimum wages specified under the Minimum Wage Act(Article 4 of the Minimum Wage Act)
(See "IX. Minimum Wages" of this Chapter for minimum wages.)96III. Five Principles of Payment of Wages
Article 24 of the Labor Standards Act specifies the five principles, stating that an employer must pay wages"in currency" and "in full" "directly to workers" "at least once a month" and "on a definite date" to ensure thatworkers themselves can surely receive wages every month.

(1) Principle of payment in currency
A. Prohibition of payments in kind
Wages must be paid in currency. Payments in kind are prohibited in principle. However, if a law orcollective agreement otherwise provides for in-kind wage, wages may be paid with something otherthan currency.
B. Transfer into savings and other accounts
With the consent of a worker, an employer can pay the worker’s wages by money transfer to a savings
account, payment to an integrated securities account with securities company, or funds transfer to an
account with a funds transfer service provider designated by the Minister of Health, Labour and Welfare(hereinafter referred to as the “account with a designated funds transfer service provider”) as satisfying
the certain requirements.
Although the above-mentioned methods of payment is now accepted, payment in these methods must
be made [i] based on a worker’s consent in writing or by electromagnetic means [ii] to the account in
the name of the worker (not in the name of the worker’s spouse or child), [iii] so as to enable the worker
to make a withdrawal by 10:00 a.m. on the designated payday (or, if payment is made by transferring
funds to an account with a designated funds transfer service provider, enable the worker to use the funds
so transferred for exchange transactions (such as instructions for funds withdrawal to the worker’s
savings account, appropriation for payment of purchases at stores or other facilities, instructions formoney remittance to a third party, etc.) by around 10:00 a.m. on the designated payday, and enable theworker to withdraw the entire amount of wage within the designated payday)).
Additionally, when an employer intends to make a funds transfer of wage to an account with adesignated funds transfer service provider, the employer must confirm with the list of the designatedfunds transfer service provider published by the Ministry of Health, Labour and Welfare that the accountdesignated by the worker is the account accepted as the wage payment account, ensure that the worker
can choose money transfer of wage to his or her savings account or integrated securities account, andexplain the required matters to the worker by using a sample of written consent form or otherwise to
obtain the consent of the worker. (Kihatsu-1128 No.4 of November 28, 2022)
C. Payment of retirement allowances by check, etc.
When a worker gives consent, retirement allowances may be paid through transfer into a savings
account or general securities account or by delivering a check issued or guaranteed by a bank or otherfinancial institution or a postal money order.

(2) Principle of payment directly to workers
A. Wages must be paid directly to a worker.
B. It is prohibited to pay wages via another person or to an agent of a worker.
However, when a worker is absent due to illness or other reasons, it is permissible to pay wages tohis/her family or other person who is found to have been sent by the worker him/herself.
C. Wages for a minor must not be received by a person who has parental authority for, or is the legal
guardian of, the minor (Article 59 of the Labor Standards Act).
However, when a worker is absent due to illness or other reasons, it is permissible to pay wages tohis/her family or other person who is found to have been sent by the worker him/herself.

97

(3) Principle of payment in fullWages must be paid in full without deducting a part thereof.
However, partial deduction is allowed in the following cases.
A. When laws and regulations provide otherwise for the deduction
Such as withholding at source of income tax or other taxes and deduction of the portions of
employment insurance premiums and social insurance premiums to be borne by the insured
B. When a labor-management agreement has been concluded
Payment in full is permitted for undisputed charges, such as company residence/dormitory expenses,
and payments for purchase of goods.
In this case, an Agreement on Partial Deduction from Wages must be concluded with a representativeof the workers. An example of an agreement is as follows. For the method of selecting a representativeof workers, see "Chapter 14, IV. Hearing of the Opinions from a Representative of Workers."

Agreement on Partial Deduction from Wages (example)○○○○, CEO of ○○○○ Co., Ltd., and ○○○○, the representative of the workers, agreed as follows withregard to partial deduction from wages based on Article 24, paragraphParticulars:(1) of the Labor Standards Act. Article 1 The company deducts the following upon paying wages every
month:(1) Meal charges(2) Membership fee for the inner assembly(3) Monthly repayments for loans
Article 2 Monthly repayments for loans referred to in (3) of Article 1 may also be deducted frombonuses.
Article 3 Any portions of the expenses set forth in Article 1 that remain unpaid at the time of separationfrom employment may be deducted from retirement allowances.
Article 4 This agreement is effective for three years from the day of conclusion. However, even after
the expiration of this effective term, this agreement remains effective unless either party announces
the intention to annul it in writing prior to 90 days.
MM/DD/YY
CEO, ○○○○ Co., Ltd.: ○○○○○

Seal

Representative of workers: ○○○○○

Seal

The following does not constitute a violation of the principle of payment in full.
[i] Not paying wages for hours during which a worker did not provide labor due to absence from work,
tardy arrival or early leaving, etc.
[ii] When having paid a part of the wages in advance, deduct that portion when paying wages(4) Principle of payment at least once a month on a definite date
When an interval between payment dates is too large, this may cause uncertainties concerning workers'
daily living, and when payment dates are not definite, workers may find it difficult to live in an organized98manner. Therefore, wages are to be paid at least once a month on a definite date in order to secure workers'
regular income (Article 24 of the Labor Standards Act).
A. Payments may be made twice a month, once a week or on a daily basis, if only the requirement of atleast once a month is satisfied.
B. Payment date must be defined, such as on 25th every month, and wages must be paid on that date.
C. This principle does not apply to retirement allowances or other special wages, bonuses, and other wages
equivalent thereto.

99IV. Emergency Payments of Wages
In the event that a worker requests the payment of wages to cover emergency expenses for childbirth, illness,disaster, or any other emergency, the employer must pay accrued wages prior to the normal date of payment(Article 25 of the Labor Standards Act).

V. Allowance for Absence from WorkIn the case where a worker was ready to work but was caused to be absent from work on a regular working
day for reasons attributable to the company (the employer), the employer must pay an allowance equal to atleast 60% of the worker's average wage (Article 26 of the Labor Standards Act).
"Reasons attributable to the employer" have a broader meaning than intentional or negligent reasons on thepart of the employer and other reasons found equivalent in accordance with the principle of good faith, but do
not include events of force majeure. Therefore, all cases: unless the employer can assert force majeure, areconsidered to be included.

VI. Guaranteed Payment at Piece Rates
With respect to workers employed under a piece work payment system or other subcontracting system, an
employer must guarantee a fixed amount of wage proportionate to working hours in order to prevent declines
in actual income due to reasons not attributable to workers (Article 27 of the Labor Standards Act).

VII.

Premium Wages< Cases where premium wages need to be paid and premium wage rates >[i] Overtime work (overtime work not exceeding 45 hours per month and notexceeding 360 hours per year)

25% or more[ii] Overtime work (overtime work exceeding 45 hours but not exceeding 60 hours
per month, or exceeding 360 hours per year)

Make efforts to set a rate at
not lower than 25%[iii] Overtime work (overtime work exceeding 60 hours per month) (excluding thehours mentioned in [iv] below) *Applicable to SMEs from April 1, 2023

50% or more[iv] Overtime work (overtime work exceeding 60 hours per month, for which
substitute leave was granted as mentioned in Chapter 3)

25% or moreWork at night (22:00 - 5:00)

25% or moreWork on a statutory day off

35% or more100

1. Cases where Premium Wages Need to be Paid
(1) Premium wages need to be paid in the following cases.
A. When having had a worker work overtime or on a statutory day off
B. When having had a worker work at night (from 22:00 to 5:00)(2) Basic pattern of paying premium wages
Overtime work when regular working hours are shorter than the statutory working hours
AM
9：00

PM
5：00

PM
6：00

PM
8：00

7 hours

1 hour*2 hours

Regular working hours

Overtimework within
the statutory
workinghours

Overtime work

Premium wages

As shown in this case, at a workplace where regular daily working hours are 7 hours, for one-hour
overtime work (the portion marked with *) within the statutory daily working hours, it suffices to pay anormal hourly wage and the payment of premium wages under the Labor Standards Act is not required.
(If the payment of premium wages in such cases is prescribed in the rules of employment, a collective
agreement or the like, the payment is mandatory.)(3) Labor-management agreement with special clauses and premium wage rates
A.By concluding a labor-management agreement with special clauses, an employer may have a worker
work beyond the upper limits specified in Article 36, paragraph (4) of the Labor Standards Act (see"Chapter 7: I. Overtime Work and Work on Days Off") up to the limit agreed in the agreement.
However, it should be noted that a labor-management agreement with special clauses may beconcluded only when there are temporary special circumstances, which means circumstances that“require overtime work in excess of the upper limits due to such reasons as temporary and sudden
increases in workloads during certain periods not exceeding half a year in total,” and that an agreement
should be reached on the following.
[i]A premium wage rate for overtime work exceeding the extension limits must be decided.

[ii] Efforts should be made to set that rate at not lower than 25%.
[iii] Efforts should be made to set the extendable hours as short as possible.
In the following example of an agreement, a premium wage rate is set at 30%.
B. When an employer has had a worker work overtime exceeding 60 hours per month, the employer must
pay premium wages at a rate of 50% or more (also applied to SMEs on and from April 1, 2023).
[i]

When overtime work extended to late at night, premium wages at a rate of 50% or more need tobe paid.
Overtime work (25% or more) + Work at night (25% or more) → 50% or more[ii]

When regular working hours contain late night hours
Premium wage at a rate of 25% or more must be paid only for the portion of the work conducted
at night.

101

Application of premium wage rates
SMEs falling under either of the following

Mandatory[i] Stated capital or contributes in total [ii] Number of regular employees

50%
(Act)

RetailObligation to
make efforts
25% or more
(Agreement)

25%
(Act)

Mandatory

Large companies

25%
(Act)

Services

Retail50 million
yen or less

Wholesale

100 million
yen or less

Others

300 million
yen or less50 or lessServicesorWholesale
Others100 or less

300 or less

Judged not by the unit of workplace but by the unit of company(corporations or sole proprietors)

SMEs

C.

When overtime work is conducted at night[i] When an employer has a worker work at night exceeding the extension limits, the employer mustspecify premium wage rates for such work and is required to make efforts to set such premium wage
rates at a rate of 25% or more in an agreement under Article 36. If any special premium wage rate is
specified for overtime work in excess of the extension limits (for example, 30%), the employer must
pay premium wages at a rate of 55% or more.
Overtime work (30%) + Work at night (25% or more) → 55% or more[ii]
When overtime work exceeding 60 hours per month extended to late at night, premium wages
at a rate of 75% or more need to be paid.
Overtime work (50%) + Work at night (25% or more) → 75% or moreD.
When work on a day off exceeds eight hours
Work on a day off is to have a worker work on a statutory day off (one day per week or any of fourdays off per four-week period).
Therefore, even if a worker was made to work on one of the two days off under a five-day work
system or on a national holiday, only if another one day is secured as a day off per week, the worker is
not deemed to have worked on a day off under the Labor Standards Act, and the employer does not needto pay premium wages therefor (unless otherwise specified in the rules of employment or a collective
agreement). However, as a result of working on that day, if the worker's weekly working hours exceeded
the statutory weekly working hours (40 hours), the work during those excess hours fall under overtime
work, for which the employer must pay premium wages (at a rate of 25%).
The idea of regular working hours does not apply to days off and the idea of overtime work does not
apply either. Therefore, the employer only needs to pay premium wages at a rate of 35% or more to aworker who worked on his/her days off, irrespective of whether the daily working hours exceeded eight
hours or not.
E.
When work on a day off extends to night time
When work on a day off extended to night time, the employer must pay premium wages at a rate of
60% or more.
Work on a day off (35% or more) + Work at night (25% or more) → 60% or more

2. Payment of Premium Wages when Having Granted Substitute Leave
Companies still need to pay premium wages at a rate of 25% or more for overtime work exceeding 60 hours
per month, even when granting substitute leave in lieu of premium wages.
Number of hours exchanged with substitute leave × Premium wage rate (25% or more)
When a worker had intended to take substitute leave but could not, the employer must additionally pay
premium wages (at a rate of 25% or more) for the working hours corresponding to that substitute leave on thedate to pay wages for the period for which it became clear that the worker would not be able to take substituteleave.

102

When a worker does not intend to take substitute leave or when a worker's intention cannot be confirmed,
the employer must pay premium wages at a rate of 50% or more on the date to pay normal wages.
A labor-management agreement may also include the provisions to the effect that if a worker takes substituteleave after receiving the payment of premium wages, the employer may make up for the excess of those wages.

3. Base Wages Underlying Premium Wages
Base wages
underlying
premium wages

Wages for normal working
hours or working days

Excluded wages[i]
Familyallowances[ii]
Commutation
allowances[iii]
Separation
allowances

[iv]
Child
education
allowances[v]
Housing
allowances[vi]
Special wages[vii]
Wages paid
periodicallyfor a period
exceeding 1
month

Wages not falling under these seven types of wages must be all included as base wages for calculating
premium wages (Article 37, paragraph (4) of the Labor Standards Act and Article 21 of the Regulation for
Enforcement of the Labor Standards Act). Whether a certain wage falls under any of these seven types of wages
to be excluded is to be judged based on its substance, irrespective of its name. It is not that wages paid underthese names are excluded automatically.
Out of the family allowances, commutation allowances, and housing allowances, only those provided
depending on the number of dependents, those provided for actual commutation expenses or depending on the
distance, and those calculated based on actual housing expenses may be excluded, and allowances provided
uniformly irrespective of the number of dependents, for example, do not fall under the category of family
allowances here.

4. Concrete Calculation Methods of Premium Wages
Calculation methods of premium wages for respective payment patterns are indicated below.

(1) In the case of hourly wages[i]Overtime work not exceeding 45 hours per month and not exceeding 360 hours per year
Hourly premium wages ＝ Hourly wages × 1.25 × Number of hours of overtime work[ii]

Overtime work exceeding 45 hours but not exceeding 60 hours per month, or exceeding 360 hours
per year
Hourly premium wages ＝ Hourly wages × Premium wage rate specified in an agreement ×
Number of hours of overtime work[iii]

Overtime work exceeding 60 hours per month (excluding the hours mentioned in [iv] below)
Hourly premium wages ＝ Hourly wages × 1.50 × Number of hours of overtime work

[iv]

Overtime work exceeding 60 hours per month, for which substitute leave was granted
Hourly premium wages ＝ Hourly wages × 1.25 × Number of hours of overtime work[v]

Work on a statutory day off
Hourly premium wages ＝ Hourly wages × 1.35

103

(2) In the case of daily wages
Regular working hours below mean working hours specified for the relevant workplace or worker, notthe statutory working hours. Therefore, if regular working hours are 7 hours, for example, the daily wages
must be divided by 7. When regular working hours vary by day, the daily wages are to be divided by theaverage number of regular working hours during one week.
[i]Overtime work not exceeding 45 hours per month and not exceeding 360 hours per year
Hourly premium wages ＝ Daily wages / Regular daily working hours × 1.25 × Number of hoursof overtime work[ii] Overtime work exceeding 45 hours but not exceeding 60 hours per month, or exceeding 360 hours
per year
Hourly premium wages ＝ Daily wages / Regular daily working hours × Premium wage rate
specified in an agreement
x Number of hours of overtime work[iii] Overtime work exceeding 60 hours per month (excluding the hours mentioned in [iv] below)
Hourly premium wages ＝ Daily wages / Regular daily working hours × 1.50 × Number of hoursof overtime work[iv] Overtime work exceeding 60 hours per month, for which substitute leave was granted
Hourly premium wages ＝ Daily wages / Regular daily working hours × 1.25 × Number of hoursof overtime work[v] Work on a statutory day off
Hourly premium wages ＝ Daily wages / Regular daily working hours × 1.35

(3) In the case of monthly wages
Regular hourly working hours vary by month. Therefore, as the number of regular monthly working
hours, the average number of regular monthly working hours during one year is to be used.
[i]

Overtime work not exceeding 45 hours per month and not exceeding 360 hours per year
Hourly premium wages ＝ Monthly wages / Regular monthly working hours × 1.25 × Numberof hours of overtime work[ii] Overtime work exceeding 45 hours but not exceeding 60 hours per month, or exceeding 360 hours
per year
Hourly premium wages ＝ Monthly wages / Number of regular monthly working hours ×
Premium wage rate specified in an agreement
x Number of hours of overtime work[iii] Overtime work exceeding 60 hours per month (excluding the hours mentioned in [iv] below)
Hourly premium wages ＝ Monthly wages / Regular monthly working hours × 1.50 × Numberof hours of overtime work[iv] Overtime work exceeding 60 hours per month, for which substitute leave was granted
Hourly premium wages ＝ Monthly wages / Regular monthly working hours × 1.25 × Numberof hours of overtime work[v] Work on a statutory day off
Hourly premium wages ＝ Monthly wages / Regular monthly working hours × 1.35

(4) In the case of piecework wages[i]Overtime work not exceeding 45 hours per month and not exceeding 360 hours per year

104

Hourly premium wages = Total amount of piecework wages (piece wage) paid during the relevant
wage calculation period
÷ Total working hours during the relevant wage calculation period ×
0.25
x Number of hours of overtime work[ii] Overtime work exceeding 45 hours but not exceeding 60 hours per month, or exceeding 360 hours
per year
Hourly premium wages = Total amount of piecework wages (piece wage) paid during the relevant
wage calculation period
÷ Total working hours for the relevant wage calculation period
× Premium wage rate specified in an agreement × Number of hoursof overtime work[iii] Overtime work exceeding 60 hours per month (excluding the hours mentioned in [iv] below)
Hourly premium wages = Total amount of piecework wages (piece wage) paid during the relevant
wage calculation period
÷ Total working hours during the relevant wage calculation period ×
0.50
x Number of hours of overtime work[iv] Overtime work exceeding 60 hours per month, for which substitute leave was granted
Hourly premium wages = Total amount of piecework wages (piece wage) paid during the relevant
wage calculation period
÷ Total working hours during the relevant wage calculation period ×
0.25
x Number of hours of overtime work[v] Work on a statutory day off
Amount of hourly premium wages = Total amount of piecework wages (piece wage) paid during
the relevant wage calculation period
÷ Number of total working hours during the relevant wage
calculation period × 0.35
When wages are paid in combination of the multiple formulae shown in (1) to (4) above, such as when
the basic wages are paid on a monthly basis with allowances on a daily basis, the sum of the amounts
calculated respectively for the portions of the total wages is the amount of the hourly premium wages.

5. Annual Wage System○ An employer who adopts an annual wage system must also pay premium wages to workers who have worked
overtime or on a statutory holiday.
○ Under an annual wage system, if annual wages include premium wages for overtime work and work on days
off, labor contracts must clarify that annual wages include such premium wages (e.g. for overtime work) sothat wages for regular working hours can be clearly separated from such premium wages. Even if wages forregular working hours are not clearly separated from such premium wages, as long as the actual labor recordof the previous year suggests the possibility of some overtime work and work on days off and both labor andmanagement recognize that annual wages include premium wages for such work, annual wages can beconsidered to include premium wages for such work. However, the employer still must clearly indicate
working conditions: including methods for determination and calculation of wages, to workers by delivering
a document of working conditions to them.

105

VIII. Average Wage
Under the Labor Standards Act, an average wage is used for calculating the following.
[i]

Allowance for dismissal without advance notice (Article 20)[ii]

Allowance for absence from work (Article 26)[iii]

Wages for annual paid leave (Article 39)[iv]

Accident compensation (Articles 76 to 82)[v]

Upper limit for a wage decrease as a sanction (Article 91)< Calculation methods of an average wage >Basically, an average wage is to be calculated using the following formula (Article 12 of the Labor Standards
Act).

Average wage＝(1)

Total amount of wages for 3 months
Total number of days in 3 months

The calculation period for an average wage is, in principle, the last three months prior to the day on
which the grounds for calculation occurred.
When a pay period ends on a fixed day, the calculation period is the 3-month period prior to the last
fixed day.
When this calculation period includes any of the following periods, the number of days and wages
during those periods are to be excluded for the calculation.
[i]

A period during which a worker was absent from work due to medical treatment for an injury
or disease resulting from an employment-related cause[ii]

A period of maternity leave before or after childbirth[iii]

A period during which a worker was absent from work for reasons attributable to the employer[iv]

A period of child care leave or family care leave[v]

A probationary period(2) The total amount of wages principally includes all wages paid during the calculation period, but thefollowing wages are excluded.
[i]

Special wages[ii]

Wages paid periodically for a period exceeding three months(3) In the case of daily wages, hourly wages and piece wages, when an average wage calculated using theabove formula is below the amount calculated using the following formula, the latter is considered to be
an average wage.

Average wage ＝Total amount of wages for the calculation period
Number of working days in the calculation period

×

60
100

With regard to cases where an average wage cannot be calculated by the methods mentioned above ora calculated average wage is extremely inappropriate, special calculation methods are presented in theRegulation for Enforcement of the Labor Standards Act and the Public Notice of the Minister of Health,Labour and Welfare.

106IX. Minimum Wages
1. Minimum Wage System
There are regional minimum wages and special minimum wages (conventional minimum wages by industry),and hourly minimum wages are specified for each prefecture (Article 3 of the Minimum Wage Act).
Regional minimum wages apply to all workers and employers in respective prefectures, while special
minimum wages only apply to certain businesses and jobs and are to be determined at levels not lower thanregional minimum wages of respective prefectures (Article 16 of the Minimum Wage Act).
Regarding workers for whom the regional minimum wage and the special minimum wage both apply, thehigher amount is applied.
For a dispatched worker, the regional minimum wage or special minimum wage of the prefecture wherein
the client's workplace is located is applied (Article 13 of the Minimum Wage Act).
* See Reference Material II, Lists of Minimum Wages (p.[236]) for the regional minimum wages and special
minimum wages (by industry).
Wages covered under the minimum wage system are limited to basic wages paid every month, specifically,
the amount excluding the following wages from the wages actually paid (Article 4, paragraph (3) of the
Minimum Wage Act).
[i]

Wages other than those paid for each period not exceeding one month defined by Ministerial Order(Article 1 of the Regulation for Enforcement of the Minimum Wage Act)

[ii]

Wages other than those normally paid for working hours or working days defined by Ministerial
Order (Article 1 of the Regulation for Enforcement of the Minimum Wage Act)

[iii]

Wages prescribed not to be included in the minimum wages (perfect attendance allowances,
commutation allowances, family allowances)

There is also an exceptional system under which a reduction of the minimum wage may be allowed byobtaining permission from the director of the Prefectural Labour Bureau for workers who have significantly
low capability for work due to mental or physical disability.

2. Mandatory Nature of Minimum Wages
An employer must pay wages of not less than the minimum wages to workers (Article 4 of the Minimum
Wage Act).
A labor contract which stipulates wages less than the minimum wages is invalid with respect to such portions
and the invalid portions are deemed to provide for wages equal to the rate of the minimum wages (Article 4,paragraph (2) of the Minimum Wage Act).

107

X. Retirement Benefit System
Retirement allowances are paid to a worker at the end of an employment relationship from the employer orthe organization entrusted thereby, as part of a labor contract or in some cases under rules on retirement
allowances predetermined as an appendix to a labor contract. Such payments are collectively called retirement
allowances, in general.
Under the Labor Standards Act, it is up to employers whether or not to pay retirement allowances and otherdetails thereof, as in the case of bonuses. However, if an employer has promised to pay retirement allowances,the employer needs to pay an agreed amount (Article 24 of the Labor Standards Act). When the payment of
retirement allowances is decided at a workplace where 10 or more workers are regularly employed, thatprovision must be stated in the rules of employment and the rules of employment need to be submitted to the
Director-General of the competent Labour Standards Inspection Office.
The retirement benefit system has existed since early times as labor practices in Japan, under various names
as retirement allowances, retirement benefits, retirement pensions, etc. It is said to have been originated from
"Norenwake," an old custom of allowing long-serving workers to open branches by using the same trade name.
The retirement benefit system is roughly divided into a retirement lump-sum payment system and aretirement pension system.
The details of a retirement lump-sum payment system vary significantly by company. Many companies
calculate the amount of payments by multiplying the base amount by the payment rate, but an increasing numberof companies have come to adopt a system to calculate retirement lump-sum payments separately from normal
wages, such as a point system or separate table system.
In general, companies establish multiple payment rates depending on such factors as the grounds forseparation from employment and years of service.
Major grounds for separation from employment are personal circumstances, circumstances attributable tothe company, mandatory retirement age, public injury, disease or death, private injury, disease or death, etc. andpayment rates are generally higher for separation due to circumstances attributable to the company, mandatory
retirement age, and public injury, disease or death. In the case of punitive dismissal, the amount paid is often
reduced or retirement allowances are not at all paid.
When different payment rates and amounts are set depending on the grounds for separation from employment
or when retirement allowances may be reduced or not paid on disciplinary grounds, such rules need to be clearlystated in the rules of employment or other documents.
Payment rates generally increase in accordance with the length of service, but there are roughly threepatterns for the increase, namely, a uniform increase, progressive increase, and staged increase. Currently,
payment rates for retirement allowances are mostly determined based on one of these three patterns.
A retirement pension system is a system under which a company or a certain organization pays a fixed amountas a pension to a worker or his/her surviving family after the end of the labor contract therewith, continuously
on fixed dates every year, based on a contract concluded in advance. This is called a corporate pension plan andis also called a private pension plan in contrast to the employees' pension plan or other public pension plans.

108

Protection of Women
I. Limitation on Women's Work
1. Limitation on Dangerous and Injurious WorkAn employer is prohibited from having women engage in the following work (Article 64-3 of the Labor
Standards Act and Article 2 of the Rules on Labor Standards for Women).
[i] Work involving the handling of heavy materials
Age

[ii]

Weight (kg)Intermittent work
Continuous work

Aged under 16128Aged 16 or overbut under 18

25

15

Aged 18 or older

30

20Working in a place where certain chemical substances injurious to pregnancy, childbirth, nursing, etc.
are generated

2. Limitation on Belowground WorkAn employer is prohibited from having women engage in work of so-called pit workers (Article 64-2 of theLabor Standards Act and Article 1 of the Rules on Labor Standards for Women). Specifically, the following
belowground work is prohibited for women.
[i]Manual work of excavating and mining of minerals (earth and stones, rocks, and minerals)[ii]Powered work of excavating and mining of minerals (earth and stones, rocks, and minerals)[iii]
Blasting work of excavating and mining of minerals (earth and stones, rocks, and minerals)[iv]
Work incidental to [i] to [iii] above, such as transporting slag and materials, and concrete
placement for lining (excluding technological management or supervision work such as that of a site
supervisor or site agent)
Additionally, an employer is prohibited from assigning pregnant women or women within one year afterchildbirth who notify the employer of their intention not to work belowground with any type of belowgroundwork.

II. Protection of Expectant and Nursing Mothers, etc. (Maternal
Protection)
1. Maternity Leave Before Childbirth
If a female worker who is expected to give birth within six weeks (or 14 weeks in the case of multiple
pregnancy) requests leave, an employer is not allowed to make her work (Article 65, paragraph (1) of the Labor
Standards Act). The delivery day is included in maternity leave before childbirth.

2. Maternity Leave After Childbirth
An employer is not allowed to make a female worker work within eight weeks after childbirth (Article 65,
paragraph (2) of the Labor Standards Act). Childbirth refers to a delivery of a baby after at least four months ofpregnancy and includes a miscarriage, a stillbirth, and an artificial abortion.
Maternity leave before childbirth is given based on a request from a mother, but during a period of maternity
leave after childbirth, an employer is not allowed to have a female worker work irrespective of whether a request
is made or not.
However, if a female worker who gave birth not less than six weeks ago makes a request, an employer isallowed to assign her with work permitted by a doctor.

109

3. Wages during Maternity Leave Before and After Childbirth
It is not necessarily required to specify maternity leave before and after childbirth as paid leave, and concreteconditions are to be specified in the rules of employment, etc.

4. Limitation on Work for Expectant and Nursing Mothers, etc.
With regard to expectant and nursing mothers (pregnant women and women within one year after childbirth),
special measures for protection, such as limitation on dangerous and injurious work, are required from the
medical perspective in order to protect the health of mothers and fetuses (Article 64-3 of the Labor Standards
Act).
Types of work prohibited for pregnant women and women within one year after childbirth who notify theemployer of their intention not to engage in such works are as follows. Among these kinds of work, work
injurious to female functions related to pregnancy and childbirth is also prohibited for female workers otherthan expectant or nursing mothers (Article 2 and Article 3 of the Rules on Labor Standards for Women).

< Limitation on work for expectant and nursing mothers, etc.>(*)×…Prohibited; △…Prohibited, upon workers' request; ○…Not prohibited
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)
(xiv)
(xv)
(xvi)
(xvii)(xviii)
(xix)
(xx)
(xxi)
(xxii)(xxiii)(xxiv)

Article 2 of the Rules on Labor Standards for Women
Handling heavy materials
Handling boilers (excluding small boilers)
Welding boilers
Operating a crane or derrick with a lifting capacity of 5 tons or more or a cargo lifting
appliance having a limited capacity of 5 tons or more
Cleaning, feeding, checking or repairing an engine or a power transfer device from anengine to a middle shaft at work, or changing belts therein
Slinging operation for a crane, derrick, or cargo lifting appliance (excluding assistance ina team work)
Operating power-driven civil engineering machinery or ship freight handling machinery
Supplying lumber to a circular saw whose diameter is 25cm or larger (excluding suchcircular saw for horizontal cutting and that with an automatic feeder) or to a band millhaving a band wheel whose diameter is 75cm or larger) (excluding such band mill with anautomatic feeder)
Exchanging, connecting or releasing track vehicles within a switching yard
Metal processing using a press machine or forging machine powered with steam orcompressed air
Processing steel plate with a thickness of 8mm or more using a power-driven pressmachine or shears
Supplying materials to a crushing machine or smasher of rocks or minerals
Working in a place with a risk of land slide or in a hole with a depth of 5m or more
Working at a height of 5m or more with a risk of injury due to fall
Assembling, demolishing or changing scaffolds (excluding assistance on the ground or thefloor)
Cutting a tree whose breast-height diameter is 35cm or larger
Carrying out lumber using a skyline logging cable crane, logging cableway, etc.
Working in a place where certain chemical substances injurious to pregnancy, childbirth,
nursing, etc. are generated
Handling a large amount of materials of high temperatures
Working in an extremely hot place
Handling a large amount of materials of low temperatures
Working in an extremely cold place
Working under an extraordinary atmospheric pressure
Using machinery or equipment causing strong vibrations to the body, such as a rock drill
and tacker

110

BeforechildbirthAfterchildbirth

×
×
×

×
△
△

Others
×
○
○

×

△

○

×

△

○

×

△

○

×

△

○

×

△

○

×

△

○

×

△

○

×

△

○

×
×
×

△
○
○

○
○
○

×

△

○

×
×

△
△

○
○

×

×

×

×
×
×
×
×

△
△
△
△
△

○
○
○
○
○

×

×

○

5. Transfer to Light Activities
In the event that a pregnant woman has so requested, an employer must transfer her to other light activities(Article 65, paragraph (3) of the Labor Standards Act).
What falls under light activities should be judged depending on concrete circumstances, but in principle, thisprovision means that an employer should assign another work as requested by the relevant worker.
However, if there are no applicable light activities, an employer does not have to go so far as to newly create
light activities to assign.

6. Limitation on Variable Working Hours System and Overtime Work
(1) Limitation on application of a variable working hours system
Even when a one-month variable working hours system or one-year variable working hours system isadopted, if an expectant or nursing mother has made a request, an employer is not allowed to have her
work in excess of eight hours on a specific day or 40 hours during a specific week, and must observe thestatutory daily and weekly working hours (Article 66, paragraph (1) of the Labor Standards Act).
(2) Limitation on overtime work, work on days off and work at night
When an expectant or nursing mother has so requested, an employer must not have her work overtime
nor work on days off or at night, including in cases of emergencies (Article 66, paragraphs (2) and (3) ofthe Labor Standards Act).

7. Time for Child Care
If a female worker raising an infant under the age of one year makes a request, an employer is required togive the female worker at least 30 minutes as time for child care twice a day, in addition to a rest period. The
employer must not have the relevant female worker work during that time for child care (Article 67 of the Labor
Standards Act).
Unlike rest periods, which must be provided in the middle of the working hours, time for child care may berequested at any time, such as at the beginning and the end of the working hours, for example.
Whether wages should be paid for time for child care is to be specified in the rules of employment, etc.

8. Measures Concerning Health Management During Pregnancy and After Childbirth
The Equal Employment Opportunity Act obliges employers to take measures for the management of maternal
health.
(1) Employers must secure the necessary time off so that female workers may receive the health guidance andmedical examinations prescribed in the Maternal and Child Health Act (Article 12 of the Equal
Employment Opportunity Act).
* Concrete details of the measures (Article 2-4 of the Regulation for Enforcement of the Equal
Employment Opportunity Act)
A. Before childbirth (during pregnancy)
Up to the 23rd week‥‥‥‥Once every four weeks
From the 24th to the 35th week ‥‥‥‥Once every two weeks
From the 36th week to childbirth‥‥‥‥Once a week
When otherwise directed by a doctor or a birthing assistant (hereinafter referred to as "a doctor,
etc."), an employer needs to secure necessary time based on such direction.
B. After childbirth (within one year)
When a doctor, etc. recommends health guidance, an employer needs to secure necessary time
based on such recommendation.
The details, such as how to grant time off for medical examinations (application methods), the unitof time-off (on a half-day basis or an hourly basis, etc.), and whether wages should be paid for thattime, are to be specified in the rules of employment, etc., but should preferably be decided throughtalks between labor and management.

111

(2) Employers must take necessary measures, such as change of working hours and reduction of work, in orderto enable female workers to comply with the directions they receive based on the health guidance andmedical examinations (Article 13, paragraph (1) of the Equal Employment Opportunity Act).
* Specifically, the outline is indicated as summarized below in the Guidelines (Public Notice of the Labor
Ministry No.105 of 1997).
A. Measures for the management of maternal health to be taken by employers[i]Measures to ease commutation during pregnancy: Staggered commuting, shortening ofworking hours, etc.
[ii] Measures concerning rest periods during pregnancy: Extension of a rest period, increaseof the number of breaks, etc.
[iii] Measures concerning health conditions during pregnancy and after childbirth: Limitation
on work, absence from work, etc.
In the absence of direct directions from a doctor, etc. or when measures are not clear, an employer
needs to ask for advice from a doctor, etc. or otherwise take appropriate actions.
B. An employer should preferably use a communication card on maternity health guidance in order toproperly communicate guidance of a doctor, etc. to the relevant worker and clarify measures that theemployer should take. An employer should also be careful about the protection of individuals' privacy.
Regarding wages for the hours during which a worker did not work due to such measures as shortening ofworking hours or absence from work, the details (whether wages should be paid or not, etc.) are to be
specified in the rules of employment, etc., but should preferably be decided through talks between laborand management.

9. Prohibition of Dismissal or Other Disadvantageous Treatment against Expectant
and Nursing Mothers(1) Restriction on dismissal by reason of leave before and after childbirth
An employer must not dismiss a female worker during maternity leave for six weeks before childbirth(or for 14 weeks in the case of multiple pregnancy) and during maternity leave for eight weeks afterchildbirth, nor within 30 days thereafter (Article 19 of the Labor Standards Act; however, this does not
apply when the continuance of the business has become impossible due to natural disaster or otherunavoidable reasons and the employer obtains the approval of the Director-General of the competentLabour Standards Inspection Office).

(2) Prohibition of disadvantageous treatment by reason of marriage, pregnancy, childbirth, etc.
A.

The following disadvantageous treatment against female workers are prohibited (Article 9,paragraphs (1) and (2) of the Equal Employment Opportunity Act)[i]
Stipulate marriage, pregnancy or childbirth as a reason for retirement of female workers[ii]
Dismiss female workers for marriage

B.

Prohibition of disadvantageous treatment against pregnant female workers and female workers who
have exercised their rights concerning pregnancy
An employer may not dismiss or otherwise treat workers disadvantageously on the following grounds(Article 9, paragraph (3) of the Equal Employment Opportunity Act and Article 2-2 of the Regulation
for Enforcement of the Equal Employment Opportunity Act)[i] A worker has become pregnant or given birth.
[ii] A pregnant worker or a female worker within one year after childbirth has requested measuresconcerning health guidance and medical examinations (measures for the management of maternal
health) or has received such measures.
[iii]A worker could not or did not engage in belowground work or dangerous and injurious work, or
has notified her intention not to engage in belowground work or dangerous and injurious workand did not engage in such work.

112

[iv] A worker requested or took maternity leave before childbirth, or could not work during a periodof maternity leave after childbirth or took maternity leave after childbirth.
[v] A pregnant worker requested transfer to other light activities or was transferred to light activities.
[vi] In a workplace where a variable working hours system is adopted, a worker requested that she
would not engage in work in excess of the statutory daily or weekly working hours or that she
would not work overtime or on days off (including in cases of emergencies), or at night, or did
not engage in such work.
[vii] A worker requested or took time for child care.
[viii]A worker is or was unable to provide labor or her labor efficiency declined due to symptoms
caused by pregnancy or childbirth.
Representative disadvantageous treatment includes the following.
[i] Dismissal[ii] Not renewing a contract for a fixed-term worker[iii] Reducing the upper limit of contract renewals that was clearly defined in advance[iv] Forcing change in the content of a labor contract to urge resignation or to change a status from a
regular worker to a non-regular worker, such as a part-timer[v] Demotion[vi] Worsening a working environment[vii] Ordering to stand by at home disadvantageously[viii]Reducing wages or calculating bonuses, etc. in a disadvantageous manner[ix] Making disadvantageous evaluations in considering promotion[x] Changing assignments disadvantageously[xi] A client refusing to offer jobs to a dispatched worker
C. Dismissal of female workers who are pregnant or in the first year after childbirth is to be void (this does
not apply in the case where the employer proves that dismissal is not by reason of pregnancy orchildbirth, etc.) (Article 9, paragraph (4) of the Equal Employment Opportunity Act).

III. Measures for Women for Whom Work during the Menstrual Period
would be Difficult
If a female worker for whom work during the menstrual period would be especially difficult requests leave,
the employer may not make the female worker work during the menstrual period (Article 68 of the Labor
Standards Act).
Extreme difficulty in work during a menstrual period means a situation where a strong pain in the lower
stomach, the waist, the head, etc. due to menstruation makes it especially difficult for the relevant woman to
work.
Therefore, this system is not intended to approve requests for leave only on the grounds of a menstrual period.
However, requesting a proof of extreme difficulty too strictly is against the purport of this system, and an
employer should not request a worker to submit a doctor's certificate or other proof but should only demand
information sufficient to draw an inference, such as the worker's explanations and her coworkers' statements.
Whether wages should be paid for a day on which a worker takes menstrual leave is to be specified in therules of employment, etc.

113

Child Care and Family Care Leave
System
I. Child Care and Family Care Leave System
1. Child Care Leave System
A worker (excluding a day laborer; the same applies hereinafter) can take child care leave for his/her child
until the child reaches one year of age upon applying to the employer on two occasions by dividing the leave.
(If his/her spouse also takes child care leave for the child, the worker can take child care leave for the child for
up to one year until the child reaches one year and two months of age. In certain cases where continued leaveis found to be necessary even after the child becomes one year old, until the child becomes one year and six
months old, and in certain cases where further leave is found to be necessary even after the child becomes one
year and six months old, until the child becomes two years old.) An employer may not reject a request for leavefrom a worker satisfying the requirements (Article 5, Article 6, paragraph (1) and Article 9-6 of the Child Careand Family Care Leave Act).
* Child care leave may also be taken by fixed-term workers falling under the following:
It is not evident that the term of a labor contract (if a contract is renewed, the contract after renewal) expiresby the day on which the relevant child becomes one year and six months old (or 2 years old in the case ofa leave up until the child becomes 2 years old).
Parental leave (fathers' child care leave) (Articles 9-2, 9-3, and 9-5 of the Child Care and Family Care Leave
Act)• Separately from child care leave, a male worker can take parental leave for up to four weeks within eightweeks after childbirth, on two occasions by dividing the leave.
* Parental care leave may also be taken by fixed-term workers satisfying the following:
It is not evident that the term of a labor contract expires (if a contract is renewed, the term of the renewed
contract expires) by the day on which 6 months elapse from the day following the day on which eightweeks elapse from the day of childbirth or the due date, whichever is the later.
• Limited to cases where a labor-management agreement is concluded, a worker may work within the scopeagreed thereby during the period of the parental leave.
* Upper limit for days available for work
• Up to the half of the regular working days and regular working hours during the parental leave• When working on the scheduled first or last day of the leave, not more than the regular working hours
for that day
The scope of workers, number of times, periods, etc. are outlined in the table below (II, “8. Scope of Workers,etc.").
An employer must specify provisions relating to the child care (including father’s child care; the same
applies hereinafter) and family care leave systems in advance in the rules of employment or other documents
and make it known to workers. An employer, who came to know that a worker or a worker's spouse has become
pregnant or given birth or that a worker is taking care of his/her family member covered under the system, isrequired to make efforts to individually inform the relevant worker of the related systems.
An employer must endeavor to specify the following matters in advance and take measures to make themknown to workers (Article 21-2 of the Child Care and Family Care Leave Act).
[i] Particulars related to treatment for a worker during a period of child care leave and family care leave
Particulars concerning wages and other financial benefits, and training and education, etc. during theleave are included.
[ii] Particulars related to working conditions after the child care leave and family care leave, such as wages
and assignments

114

Other working conditions include promotion and annual paid leave, etc. When calculating
attendance rates for deciding the number of days granted as annual paid leave, a worker is deemed tohave worked during a period of child care leave and family care leave (Article 39, paragraph (10) of theLabor Standards Act).
[iii]
Other particulars
When to resume provision of labor when child care leave or family care leave ceases to be necessary,and the method to pay social insurance premiums to the employer during a period of leave are to be
decided (Article 70 of the Regulation for Enforcement of the Child Care and Family Care Leave Act).
When receiving a notification concerning the pregnancy, childbirth, etc. of a worker or a worker's
spouse, an employer must provide the worker with sufficient information on matters concerning thechild care leave system, etc.] and take measures such as an interview to confirm whether he/she intends
to take child care leave or parental leave, individually (Article 21, paragraph (1) of the Child Care andFamily Care Leave Act).
Additionally, in order to ensure workers' smooth applications for child care leave and parental leave,
an employer should take at least one of the measures such as the provision of training on child care leaveand parental leave and the development of a consultation system (Article 22 of the Child Care andFamily Care Leave Act).
Employers who regularly employ over 1,000 workers must disclose the rate of their male workers'
acquisition of child care leave, etc. once a year (Article 22-2 of the Child Care and Family Care Leave
Act).

2. Family Care Leave System
A worker (excluding a day laborer; the same applies hereinafter) who is taking care of his/her family
member in need of nursing care covered under the system can take family care leave upon applying to theemployer, for three times up to 93 days in total for one family member (Article 11 of the Child Care and Family
Care Leave Act).
The scope of workers, number of times, periods, etc. are outlined in the table below (II, “8. Scope of Workers,etc.").
* Family care leave may also be taken by fixed-term workers falling under the following:
It is not evident that the term of a labor contract (if a contract is renewed, the contract after renewal) expiresby the day on which six months elapse from the 93rd day from the day of planning to take the leave.

3. Prohibition of Disadvantageous Treatment
An employer is prohibited from dismissing or otherwise treating workers disadvantageously on the groundsof having applied for or used [i] child care leave, [ii] parental leave, [iii] family care leave, [iv] sick/injured
child care leave, [v] nursing leave, [vi] the limitation on work in excess of regular working hours, [vii] measures
to shorten regular working hours or the like, [viii] the limitation on overtime work, and [ix] the limitation onnight work, or [x] having filed a notification concerning their own or their spouses' pregnancy, childbirth, etc.,
or [xi] having failed to report the days on which they are available for work, etc. during parental leave or togive consent thereto (Articles 10, 16, 16-4, 16-7, 16-10, 18-2, 20-2, Article 21, paragraph (2), and Article 23-2of the Child Care and Family Care Leave Act).
When a causal connection is found between disadvantageous treatment and a worker's act of filing anapplication or using any of these systems, the relevant disadvantageous treatment is prohibited.
Representative disadvantageous treatment includes the following.
[i] Dismissal[ii] Not renewing a contract for a fixed-term worker[iii] Reducing the upper limit of contract renewals that was clearly defined in advance[iv] Forced change in the content of a labor contract to urge resignation or to change a status from a regular
worker to a non-regular worker[v] Ordering to stand by at home[vi] Applying the limitation on work in excess of regular working hours, limitation on overtime work,
limitation on night work, or measures to shorten regular working hours or the like beyond the period
applied by a worker against his/her will115

[vii]

Demotion[viii]

Reducing wages or calculating bonuses, etc. in a disadvantageous manner[ix] Making disadvantageous evaluations in considering promotion[x] Changing assignments disadvantageously[xi] Worsening a working environment

II. Protective Measures for Workers with Family Responsibilities
1. Sick/Injured Child Care Leave System
A worker can take sick/injured child care leave for up to five days a year if he/she has one pre-school childand for up to 10 days a year if he/she has two or more pre-school children, upon applying to the employer.
Sick/injured child care leave may be taken for the purpose of taking care of a sick or injured child, or having achild get a vaccination or a medical check-up on a day or on an hourly basis. An employer may not reject arequest for leave from a worker satisfying the requirements (Articles 16-2 and 16-3 of the Child Care andFamily Care Leave Act).

2. Nursing Leave System
A worker who takes care of his/her family member in need of nursing care covered under the system cantake up to five days off for nursing leave a year if he/she has one such family member and up to 10 days off fornursing leave a year if he/she has two or more such family members, upon applying to the employer. Nursing
leave may be taken on a day or on an hourly basis. An employer may not reject a request for leave from a worker
satisfying the requirements (Articles 16-5 and 16-6 of the Child Care and Family Care Leave Act).

3. Measures to Shorten Working Hours, etc.
For a worker (excluding such worker whose regular working hours are six hours or shorter per day, a daylaborer, and a worker excluded from the application of the measures in a labor-management agreement) who israising a child under three years of age and does not take child care leave, an employer must take measures toshorten regular working hours. Regarding a worker to whom it is difficult to apply a shorter working hours
system due to the nature of his/her duties, an employer must take measures equivalent to a child care leavesystem, or measures to change the starting time (adopt a flextime system, move up or down the starting or
finishing time, establish and run a child care facility, or extend any other equivalent preferential measures).
For a worker who takes care of a subject family member regularly in need of nursing care and does not takefamily care leave, an employer must take some of the following measures: shorten regular working hours, adopt
a flextime system, move up or down the starting or finishing time, provide financial assistance for nursing
expenses or other equivalent measures, at least twice for three or more consecutive years (Article 23 of theChild Care and Family Care Leave Act and Article 74 of the Regulation for Enforcement of the Child Care andFamily Care Leave Act).

4. Limitation on Work in Excess of Regular Working Hours
When a worker (excluding a day laborer and a worker excluded from the application of the measures in alabor-management agreement) who is raising a child under the age of three years makes a request, an employer
must not make the worker work in excess of the regular working hours, except for cases where said request

116

would impede normal business operations. This request may be filed for a period exceeding one month but notexceeding one year. Requests may be filed any number of times (Article 16-8 of the Child Care and Family
Care Leave Act).
When a worker who takes care of a subject family member in need of nursing care makes a request, an
employer must not make the worker work in excess of the regular working hours, except for cases where said
request would impede normal business operations. This request may be filed for a period exceeding one month
but not exceeding one year, while clarifying the days of the start and the end of application of the measures, by
one month prior to the scheduled day of starting the application. Requests may be filed any number of times(Article 16-9 of the Child Care and Family Care Leave Act).

5. Limitation on Overtime WorkWhen a worker (excluding a day laborer, a worker whose regular weekly working days is two days or less,and a worker who has been employed by the same employer continuously for less than one year) who is raisinga pre-school child or takes care of a subject family member regularly in need of nursing care makes a request,
an employer must not make the worker work overtime in excess of 24 hours per month and 150 hours per year,
except for cases where said request would impede normal business operations. This request may be filed for aperiod exceeding one month but not exceeding one year, and requests may be filed any number of times(Articles 17 and 18 of the Child Care and Family Care Leave Act).

6. Limitation on Work at Night
When a worker who is raising a pre-school child or takes care of a subject family member regularly in needof nursing care makes a request, an employer must not make the worker work at night, except for cases where
said request would impede normal business operations. This request may be filed for a period exceeding one
month but not exceeding six months, and requests may be filed any number of times (Articles 19 and 20 of theChild Care and Family Care Leave Act).

7. Consideration Concerning Assignments
When making a change to assignments of an employed worker, an employer must give consideration for theworker's situation with regard to child care or family care (Article 26 of the Child Care and Family Care Leave
Act).
Concretely, the employer is to ascertain the worker's situation of raising his/her child or taking care of his/herfamily member and take into account the worker's own will. When the change results in a change of the worker's
workplace, the employer is to also check whether the worker has any alternative means for child care or family
care.

117

8. Scope of Workers, etc.
The scope of workers, number of times, periods, etc. for each leave system are as follows.

Re. child careRe. family care
Parental leave

Family care leave

Definition○ Leave for a worker for the purposeof raising a child aged younger
than 1 year

○ Leave for a male worker who
has not taken leave afterchildbirth for the purpose ofraising his child within 8
weeks after birth, in principle○ Leave for a worker for the
purpose of taking care of his/herfamily member in need ofnursing care (in need of regularnursing care for 2 weeks orlonger due to an injury, diseaseor mental or physical disorder)

Scope ofworkers
covered○ A worker (excluding a daylaborer)○ A fixed-term worker who
satisfies the following at the timeof application• It is not evident that the term of
the labor contract expires andthe contract will not be renewedby the day on which the childbecomes 1 year and 6 months
old (or 2 years old in the caseof a leave up until the childbecomes 2 years old).

○ A male worker who has nottaken leave after childbirth(excluding a day laborer)○ A fixed-term worker who
satisfies the following at thetime of application• It is not evident that theterm of the labor contract
expires and the contract will
not be renewed by the dayon which 6 months elapse
from the day following the
day on which eight weeks
elapse from the day ofchildbirth or the due date,
whichever is the later.

○ A worker (excluding a daylaborer)○ A fixed-term worker who
satisfies the following at thetime of application• It is not evident that the termof the labor contract expires
and the contract will not be
renewed by the day on which
6 months elapse from the 93rd
day from the day of planningto take the leave.

Family Care Leave System

Child care leave○ A worker who can be excluded
under a labor-managementagreement• A worker employed for lessthan 1 year
• A worker whose employment
relationship ends within 1 year
(or within 6 months in the caseof a leave after the childbecomes 1 year old)
• A worker whose regular
working days are 2 days or lessper week○ A worker who can be
excluded under a labormanagement agreement• A worker employed for lessthan 1 year
• A worker whose
employment relationshipends within 8 weeks• A worker whose regular
working days are 2 days orless per week

○ A worker who can be excluded
under a labor-managementagreement• A worker employed for lessthan 1 year
• A worker whose employment
relationship ends within 93
days• A worker whose regular
working days are 2 days orless per week

Scope offamilymembers
covered○ Worker's children○ Worker's children○Worker's spouse (including defacto spouse, the same applies
hereinafter)
Worker's parents, children, andspouse's parents
Worker's grandparents, siblings,
and grandchildren

Number oftimes○ Twice per child, in principle○ Child care leave may be taken
again in the following cases:(i) When child care leave ended
as a result of the commencementof new maternity leave, parental
leave, child care leave, or familycare leave and the child or thefamily member relating to thelatter leave died

○ Twice per child (When taking
leave on two occasions bydividing it, an application is tobe filed collectively on one
occasion)○ 3 times per 1 subject family
member118

(Cont.)Numbertimesof(ii) When the spouse died or when it
became difficult for the spouse to
take care of the child due to an
injury, disease, or disorder(iii) When the spouse ceased to livewith the child as a result of divorce,etc.
(iv) When the child is in need of carefor 2 weeks or longer due to an
injury, disease or disorder(v) When the worker cannot find aplace for the child at a day carecenter○ Child care leave after the childbecomes 1 year old may be taken
separately from child care leave up to
the age of 1 year.
○ Regarding leave after the childbecomes 1 year old, only in the casereferred to in (i) above, child care leave
up until the child becomes 1 year and6 months old or 2 years old can betaken again.

Period○ A consecutive period until the childbecomes 1 year old, in principle○ If the spouse takes child care leave, aworker may take leave up to 1 year
totaling a period of maternity leave
before and after the day of childbirth,child care leave, and father’s child careleave, until the child becomes 1 yearand 2 months old.

Period(when
extended)○ Child care leave up until the childbecomes 1 year and 6 months old canbe taken only when the following
requirements (when falling under (ii)C. below, when only requirements in(ii)) are satisfied.
(i) Either of the parents is on childcare leave as of the day on which
the child becomes 1 year old (whenthe parents are on child care leave
for the child over 1 year old using
the Mom & Dad Child Care Leave
Plus System, as of the scheduled
last day of the leave).
(ii) There is any of the following
circumstances:
A. When the worker cannot find aplace for the child at a day carecenter
B. When the spouse (another parent),
who had been expected to take careof the child after the child becomes 1
year old, died or became unable totake care of the child due to an injury
or disease, etc.
C. When child care leave ended as aresult of the commencement of newmaternity leave, parental leave, childcare leave, or family care leave andthe child or the family member
relating to the latter leave died(iii) The worker has not taken childcare leave up until the child becomes
1 year and 6 months old.
* Child care leave may be extended fromuntil the age of 1 year and 6 months tountil the age of 2 years under the same
conditions.

○ Up to 4 weeks (28 days) in total
within 8 weeks after childbirth, inprinciple- 119 -○ Up to 93 days in total per 1 subject
family member

Re. child care
ProcedureChild care leave

Parental leave

Family care leave○ File an application in writing to theemployer•
The employer may request
the submission of certifications.
•
The employer notifies theworker of the scheduled first day andlast day of the leave in writing.
○ The period for filing an application (theperiod during which the employer may
delay the first day of the leave) is by 1
month prior to the first day of the leave(however, in such cases as wherechildbirth was earlier than the due date,by 1 week prior to the first day of theleave).
An application for leave after the childbecomes 1 year old must be filed by 2
weeks prior to the first day of the leave(on or after the day following the dayon which the child becomes 1 year old(in the case of child care leave up until
the child becomes 2 years old,
following the day on which the childbecomes 1 year and 6 months old), by
1 month prior to the first day of theleave)○ File an application in writing to theemployer•
The employer may request
the submission of certifications.
•
The employer notifies theworker of the scheduled first day andlast day of the leave in writing.
○ The period for filing an application (theperiod during which the employer may
delay the first day of the leave) is by 2
weeks prior to the first day of the leave(when a labor-management agreement
is concluded, by the deadline stipulated
in the agreement during a period over 2
weeks and up to 1 month) (however, insuch cases as where childbirth was
earlier than the due date, by 1 weekprior to the first day of the leave).
○ In such cases as where childbirth was
earlier than the due date, the scheduled
first day of the leave may be moved up
only once for each leave.
○ By filing an application by 2 weeks
earlier, the scheduled last day of theleave may be moved down within the
period of 4 weeks (28 days) in total
within 8 weeks after childbirth, only
once for each leave.

○ File an application in writing to theemployer•
The employer may request
the submission of certifications.
•
The employer notifies theworker of the scheduled first day andlast day of the leave in writing.
○ The period for filing an application (theperiod during which the employer may
delay the first day of the leave) is by 2
weeks prior to the first day of the leave.

Family Care Leave System○ In such cases as where childbirth was
earlier than the due date, the scheduled
first day of the leave may be moved up
only once for each leave.
○ By filing an application by 1 monthearlier, the scheduled last day of theleave may be moved down within the
period until the child becomes 1 year
old, only once for each leave.
While on child care leave after thechild becomes 1 year old, by filing anapplication by 2 weeks earlier, thescheduled last day of the leave may be
moved down within the period until
the child becomes 1 year and 6 months
old (or 2 years old), only once.
○ An application for leave may be
withdrawn by notification by the day
preceding the scheduled first day of theleave.
○
When an application forchild care leave up until the childbecomes 1 year old is withdrawn once,
it is deemed that leave was taken once.
Each application for child care leave forthe child over 1 year old may be
withdrawn one time only. When having
withdrawn an application, anotherapplication may not be filed, inprinciple.
Work during the leave

Re. family care○
An application for leave
may be withdrawn by notification by
the day preceding the scheduled firstday of the leave. When an application iswithdrawn once, it is deemed that leave
was taken once. When having
withdrawn applications twice, anotherapplication may not be filed.

○ Limited to cases where a labormanagement agreement stipulates
workers whom the employer may get toengage in work during the leave, aworker may engage in work within therange agreed thereby.
○ A worker who wants to engage in work
during the leave is to report his days
available for work, etc. in writing.
Then, the employer presents dates on
which the employer will get the worker
to engage in work within the range ofreported days available for work, andconcludesalabor-managementagreement with the worker by the day
preceding the first day of the leave.
○ There is the upper limit for days
available for work, etc. (up to the halfof the regular working days and regular
working hours during the leave, etc.)○ An application for leave may be
withdrawn by notification by the day
preceding the scheduled first day of theleave. On or after first day of the leave,
withdrawal is permitted only when
special circumstances exist.

- 120 -○ By filing an application by 2 weeks
earlier, the scheduled last day of theleave may be moved down within the
period of 93 days, only once for eachapplication.

○ An application for leave may be
withdrawn by notification by the day
preceding the scheduled first day of theleave.
○ When an application is withdrawn
twice successively, the employer may
refuse applications filed thereafter.

Re. family care

Details of thesystem○ A worker can take sick/injured child care leave for up to 5 days a year if he/she has one pre-school child (or up to 10
days a year if he/she has 2 or more pre-school children) for the purpose of taking care of a sick or injured child, or
having a child get a vaccination or a medical check-up.
○ Sick/injured child care leave may be taken on an hourly basis.

Scope of workers
covered○ A worker (excluding a day laborer) who is raising a pre-school child○ A worker who can be excluded under a labor-management agreement• A worker who has served less than 6 months• A worker whose regular working days are 2 days or less per week

Details of thesystem○ A worker who takes care of his/her family member in need of nursing care covered under the system can take up to 5days off for nursing leave each fiscal year if he/she has 1 such family member and up to 10 days off for nursing leave
each fiscal year if he/she has 2 or more such family members.
○ Sick/injured child care leave may be taken on an hourly basis.

Scope of workers
covered○ A worker (excluding a day laborer) who takes care of his/her family member in need of nursing care covered under
the system○ A worker who can be excluded under a labor-management agreement• A worker who has served less than 6 months• A worker whose regular working days are 2 days or less per week

Details of thesystem○ When a worker who is raising a child under the age of 3
years makes a request, an employer must not make theworker work in excess of the regular working hours.

○ When a worker who takes care of a subject family
member in need of nursing care makes a request, an
employer must not make the worker work in excess of
the regular working hours.

Scope of workers
covered○ A worker (excluding a day laborer) who is raising achild under the age of 3 years○ A worker who can be excluded under a labormanagement agreement• A worker who has served less than 1 year
• A worker whose regular working days are 2 days orless per week

○ A worker (excluding a day laborer) who takes care of a
subject family member in need of nursing care
○A worker who can be excluded under a labormanagement agreement• A worker who has served less than 1 year
• A worker whose regular working days are 2 days orless per week

Period and numberof times○ A period exceeding 1 month but not exceeding 1 year
for each request○ No limits in the number of times○ A period exceeding 1 month but not exceeding 1 year
for each request○ No limits in the number of times

Procedures○ Make a request by 1 month prior to the first day of theperiod○ Make a request by 1 month prior to the first day of theperiodException○ The employer may reject a request in cases where said
request would impede normal business operations.

○ The employer may reject a request in cases where said
request would impede normal business operations.

Details of thesystem○ When a worker who is raising a pre-school child makesa request for that purpose, an employer must not makethe worker work overtime in excess of 24 hours permonth and 150 hours per year.

○ When a worker who takes care of a subject family
member in need of nursing care makes a request forthat purpose, an employer must not make the worker
work overtime in excess of 24 hours per month and 150
hours per year.

Scope of workers
covered○ A worker who is raising a pre-school child
However, the following workers are excluded.
• A day laborer• A worker who has served less than 1 year
• A worker whose regular working days are 2 days orless per week

○ A worker who takes care of a subject family member inneed of nursing care
However, the following workers are excluded.
• A day laborer• A worker who has served less than 1 year
• A worker whose regular working days are 2 days orless per week

Period and numberof times○ A period exceeding 1 month but not exceeding 1 year
for each request○ No limits in the number of times○ A period exceeding 1 month but not exceeding 1 year
for each request○ No limits in the number of times

Procedures○ Make a request by 1 month prior to the first day of theperiod○ Make a request by 1 month prior to the first day of theperiodException○ The employer may reject a request in cases where said
request would impede normal business operations.

○ The employer may reject a request in cases where said
request would impede normal business operations.

Re. child careRe. family care

○ When a worker who is raising a pre-school child makes arequest for that purpose, an employer must not make theworker work at night (22:00 to 5:00).

○ When a worker who takes care of a subject family memberin need of nursing care makes a request for that purpose, an
employer must not make the worker work at night (22:00 to5:00).

Details of the system

Systemto limit
work atnight

System to limit overtime work

System to limit work in excess of regular
working hours

Nursing leave

Sick/injured childcare leave

Re. child care

- 121 -

Scope ofcoveredworkers○ A worker who is raising a pre-school child
However, the following workers are excluded.
• A day laborer• A worker who has served less than 1 year
• A worker with a family member living together who cantake care of the child
A family member living together who can take care of thechild is 16 years old or over, andA. is not working at night (including the cases in which
the number of days worked at night is 3 days or less permonth),
B. has no difficulty in providing care due to an injury,
disease or mental or physical disorder, andC. is not due to give birth within 6 weeks (or 14 weeks inthe case of multiple pregnancy) or is not within 8 weeks
after child birth.
• A worker whose regular working days are 2 days or lessper week• A worker whose regular working hours are all during nighttime○ A worker who takes care of a subject family member in needof nursing care
However, the following workers are excluded.
• A day laborer• A worker who has served less than 1 year
• A worker with a family member living together who cantake care of the relevant family member
A family member living together who can take care of therelevant family member is 16 years old or over, andA. who is not working at night (including the cases inwhich the number of days worked at night is 3 days orless per month),
B. who has no difficulty in providing care due to an injury,
disease or mental or physical disorder, andC. who is not due to give birth within 6 weeks (or 14
weeks in the case of multiple pregnancy) or is notwithin 8 weeks after child birth.
• A worker whose regular working days are 2 days or lessper week• A worker whose regular working hours are all during nighttime

Period and number oftimes○ A period exceeding 1 month but not exceeding 6 months foreach request○ No limits in the number of times○ A period exceeding 1 month but not exceeding 6 months foreach request○ No limits in the number of times

Procedures○ Make a request by 1 month prior to the first day of the period○ Make a request by 1 month prior to the first day of the period

Exception○ The employer may reject a request in cases where said
request would impede normal business operations.

○ The employer may reject a request in cases where said
request would impede normal business operations.

Measures to shorten regular
working hours or the like

○ For a worker (excluding a day laborer) who is raising a childunder 3 years of age and does not take child care leave(excluding such worker whose regular working hours are 6
hours or shorter per day), an employer must take measures
such as shortening regular working hours to 6 hours or
shorter.
However, these measures do not apply to workers who fallunder any of the following and are excluded from theapplication of the measures as specified in a labormanagement agreement.
1.A worker who has served less than 1 year
2.A worker whose regular working days are 2 days or lessper week
3.A worker to whom it is difficult to apply a shorter working
hours system in light of the nature of his/her duties or theoperational system○ When an employer decided not to take measures to shorten
regular working hours for workers falling under 3. above, theemployer must take some of the following measures.
• Take measures equivalent to a child care leave system• Adopt a flextime system• Move up or down the starting time or finishing time
• Establish and run a child care facility, or extend any otherequivalent preferential measures○ For a worker (excluding a day laborer) who takes care of a
subject family member regularly in need of nursing care, an
employer must take measures to enable him/her to use anyof the following measures for each subject family member at
least twice during 3 or more years after commencing the use
thereof.
• Take measures to shorten regular working hours• Adopt a flextime system• Move up or down of the starting time or finishing time
• Provide financial assistance for expenses for nursing
services used by the worker or take other equivalentmeasures
However, these measures do not apply to workers who fallunder any of the following and are excluded from theapplication of the measures as specified in a labormanagement agreement.
1.A worker who has served less than 1 year
2.A worker whose regular working days are 2 days or less perweek

Measures for workers raising a
pre-school child or taking careof a family member○ For a worker raising a pre-school child, an employer must
make efforts to take necessary measures equivalent to a childcare leave system, a system to limit work in excess of regular
working hours, measures to shorten regular working hours,
or a flextime system.
○ For a worker raising a pre-school child, an employer must
make efforts to prepare a leave system for a spouse'schildbirth or other child care-related leave system.

○ For a worker taking care of a family member, an employer
must make efforts to take necessary measures equivalent toa family care leave system or measures to shorten regular
working hours, in consideration of the period and the numberof times, etc. required for providing nursing care.

- 122 -Obligations to make childcare and family care leavesystems, etc. known toindividual workers

Re. child careRe. family care

○ When receiving a notification concerning the
pregnancy, childbirth, etc. of a worker or a worker's
spouse, an employer must provide the worker with
sufficient information on the child care leave system,
etc. and confirm whether he/she intends to take leaveor not, individually.

－○ An employer must endeavor to specify the following matters in advance in the rules of employment, etc.
and take measures to make them known to all workers and to each of them individually.
(i) Particulars related to treatment for a worker during a period of child care leave and family care leave(ii) Particulars related to working conditions after the child care leave and family care leave, such as
wages and assignments(iii) Particulars related to the timing to restart the provision of labor in cases where the period of childcare leave or family care leave ended due to discontinuation of child rearing or nursing care(iv) Particulars related to how to pay social insurance premiums during a period of family care leave○ When an employer came to know that a worker or a worker's spouse has become pregnant or given birthor a worker is taking care of his/her family member, the employer must make efforts to individually informthe relevant worker of the related systems (information other than that on the child care leave system thatthe employer must disseminate among workers).
Development of theemployment environment○ In order to ensure workers' smooth applications for child care leave and parental leave, an employer
must take any of the following measures.
• Provision of training concerning child care leave and parental leave• Development of a consultation system concerning child care leave and parental leave• Compilation and provision of concrete examples of one's own workers' acquisition of child care leaveand parental leave• Dissemination of information regarding one's own system and policy concerning child care leave andparental leave internally to workers

Measures to prevent
harassment concerning
child care leave, etc.

○ An employer must ensure that workers' working environments are not damaged by reason of theirapplication for or use of child care leave, parental leave, family care leave or other systems or measuresconcerning child care or family care by developing a system necessary for responding to and handlingworkers' consultations or otherwise taking measures necessary for employment management.

Consideration concerningassignments of workers○ When intending to change workers' assignments involving changes in workplaces, an employer must
give due consideration to the situation of child care or family care regarding any worker who would facedifficulties in raising a child or taking care of a family member due to a change in workplace.

Prohibition ofdisadvantageous
treatment

An employer is prohibited from treating workers disadvantageously on the grounds of:○ their application for or use of child care leave, parental leave, or family care leave, sick/injured childcare leave, nursing leave, or measures concerning limitation on work in excess of regular working
hours, limitation on overtime work, limitation on work at night, or shortening of regular working hours,
etc.
○ filing of a notification concerning their own or their spouses' pregnancy, childbirth, etc.
○ failure to report their days available for work, etc. during parental leave or to give consent thereto

Publication of the statusof workers' acquisition ofchild care leave○ Companies that regularly employ over 1,000 workers are subject to the obligation.
○ The rate of male workers' acquisition of child care leave, etc. (acquisition of leave for the purpose ofchild rearing may be included) should be disclosed once a year.

123III. Obligation to Establish General Employers Action Plan under the Act
on Advancement of Measures to Support Raising Next-Generation
ChildrenIn order to develop an environment wherein all children, who will lead the next-generation society, can growsoundly, the national and local governments, employers, and the citizens are required to respectively support
raising of children based on the Act on Advancement of Measures to Support Raising Next-Generation
Children.
An employer, other than the national and local governments, who regularly employs over 100 workers is
obliged to establish a general employers' action plan to ensure workers' work-life balance, in line with the
Employers Action Plan Formulation Guidelines, notify the competent Prefectural Labour Bureau of the content
of the established plan, and also publicize it. (An employer who regularly employs 100 workers or less isrequired to make efforts.) A general employers' action plan must contain [i] the plan period, [ii] the goals, and[iii] details of the measures for achieving the goals and the implementation period.
Companies that have achieved the goals decided in an action plan or have otherwise satisfied a certain levelcan file an application and obtain approval of the Minister of Health, Labour and Welfare (Kurumin Approval,etc.). When a company that had obtained the Kurumin Approval has made further efforts and has satisfied acertain higher level, it can obtain special approval (Platinum Kurumin Approval, etc.).
Companies that have obtained approval or special approval can use the authorized mark as child rearing
support companies and can receive preferential evaluations, etc. in public procurement processes.

124

Prohibition of Discrimination andCountermeasures against Harassment
I. Prohibition of Discriminatory Treatment on the Basis of Sex
Article 4 of the Labor Standards Act provides that an employer must not use the fact that a worker is awoman as a basis for engaging in differential treatment in comparison to men with respect to wages.
Additionally, the Equal Employment Opportunity Act prohibits discrimination on the basis of sex withregard to recruitment and employment, assignment, promotion, demotion, and training of workers, fringe
benefits, change in job type and employment status of workers, and encouragement of retirement, mandatory
retirement age, dismissal, and renewal of the labor contract (Articles 5 and 6 of the Equal Employment
Opportunity Act). Prohibited discrimination and concrete examples are as shown below.

3. Demotion

2. Promotion

1. Assignments< Prohibited discrimination on the basis of sex and concrete examples >Prohibited discrimination

ExamplesA. Exclude either sex from candidates for the assignment to certain
dutiesAssign only workers of either sex with duties that often require overtime work

B. Apply different conditions between men and women for theassignment to certain duties

Exclude only female workers when assigning certain duties on the grounds ofbeing married or raising a child, or on the basis of age

C. Apply different methods or criteria between men and women when
judging the ability and qualification for the assignment to certain
dutiesD. Prefer either sex for the assignment to certain duties

Apply different criteria for passing an exam between men and women for theassignment to duty A

E. Treat men and women differently upon allocation of duties at aworkplace

At department A, assign male workers with out-of-office duties and assign
female workers only with in-house duties

F. Treat men and women differently when granting authority uponassignment

Provide female workers with purchasing authority limited to lower prices thanmale workers

G. Treat men and women differently upon job transfer

Order temporary transfer only to female workers upon streamlining thebusiness

A. Exclude either sex from candidates for the promotion to certain
managerial positions

Exclude female workers from chances to get promoted to managerial
positions or set limits on available positions only for female workers

B. Apply different conditions between men and women for thepromotion to certain managerial positions

Establish a rule only applicable to female workers that they cannot get
promoted or can get promoted only up to certain positions on the grounds ofbeing married or raising a child, or on the basis of age
Promote male workers when they obtain average personnel evaluations, while
only promoting female workers who are especially highly evaluated

C. Apply different methods or criteria between men and women when
judging the ability and qualification for the promotion to certain
managerial positions
D. Prefer either sex for the promotion to certain managerial positions

When there are multiple workers satisfying the criteria for getting promoted
to certain managerial positions, preferably select male workers

A. Limit either sex as targets for demotion

When abolishing certain managerial positions, transfer male workers to otherequivalent positions and demote only female workers

B. Apply different conditions between men and women for demotion

Apply conditions for demotion of being married or raising a child only tofemale workers

C. Apply different methods or criteria between men and women when
judging the ability and qualification for deciding demotion

Under a policy to demote workers with poor sales performance, demote amale worker whose sales performance was the worst and demote female
workers with sales performance below the average
When selecting workers to demote due to abolition of certain managerial
positions, prefer female workers as targets for demotion

D. Prefer either sex when deciding demotion
A. Exclude either sex from the coverage of education and training
4. Education and training

When there are multiple workers satisfying the criteria for assigning todepartment A, assign male workers preferentially

B. Apply different conditions between men and women regarding
education and training
C. Provide different education and training to men and women

Although education and training are intended for all workers engaging incertain duties, provide only workers of either sex with the education andtraining
Provide education and training to all male workers but to only female workers
who wish to receive it
Provide education and training with different content for different periods
depending on sex

1255. Fringe benefits

Prohibited discrimination
A. Exclude either sex from the coverage of fringe benefits

ExamplesLend company housing only to male workers

B.
Apply different conditions between men and womenregarding fringe benefits

Exclude only married female workers from the scope of workers forlending company housing

A. Exclude either sex from targets for change in job type andemployment status[i]A. Limit either sex as targets for dismissal or encouragement of
retirement

Target only workers of either sex when changing from a nonmanagement track position to a management track position[ii] Target only workers of either sex when changing a status froma fixed-term worker to a full-time worker[i] Apply different years of service between men and women as
conditions when changing from a non-management track
position to a management track position[ii] Apply different years of service between men and women as
conditions when changing a status from a fixed-term worker toa full-time worker[iii] [i]Apply different criteria for passing an exam between
men and women for changing from a non-management track
position to a management track position[iv] [ii]Apply different criteria for passing an exam between
men and women for changing status from a fixed-term worker
to a full-time worker[i] Prefer workers of either sex when deciding change in job typefrom among all workers satisfying criteria for changing from a
non-management track position to a management track position[ii] Prefer workers of either sex when deciding change in
employment status from among all workers satisfying criteria
for changing a status from a part-time worker to a full-timeworker[v] [i]Change job types only for female workers on the basisof age, such as from a specialist job like an announcer to aclerical job[vi] [ii]Recommend change of an employment status from afull-time worker to a fixed-term worker (to worse working
conditions) only to female workers upon streamlining thebusiness
Dismiss or encourage retirement only targeting female workers forthe purpose of streamlining the business

B. Apply different conditions between men and women regarding
dismissal or encouragement of retirement

Dismiss or encourage retirement only targeting married female
workers for the purpose of streamlining the business

C. Apply different methods or criteria between men and women when
judging the ability and qualification for deciding dismissal or
encouragement of retirement

When there is a need for dismissal or encouragement of retirement
upon streamlining the business, target only those with the worst
personnel evaluations in the case of male workers, while target all
female workers except for those with superior performance
Prefer female workers as targets for dismissal or encouragement of
retirement

6. Change in job type and employment status

B. Apply different conditions between men and women regarding
change in job type and employment status

C. Apply different methods or criteria between men and women when
judging the ability and qualification for changing job type andemployment status

D. Prefer either sex when deciding change in job type and employment
status

9. Renewal of the labor contract

8. Mandatory retirement

7. Encouragement of retirement or dismissal

E. Treat men and women differently regarding change in job type andemployment status

D. Prefer either sex when deciding dismissal or encouragement of
retirement
Apply different rules between men and women regarding mandatory
retirement

When raising the mandatory retirement age, set different ages
between men and women in consideration of the ages when thepayment of employees' pension benefits starts

A. Exclude either sex from targets for renewal of the labor contract

Renew labor contracts only for male workers upon streamlining thebusiness

B. Apply different conditions between men and women regarding
renewal of the labor contract

Refuse renewal of labor contracts only for female workers uponstreamlining the business

C. Apply different methods or criteria between men and women when
judging ability and qualification for renewing the labor contract

Renew labor contracts for male workers with average sales
performance, while in the case of female workers, renew labor
contracts only for those whose sales performance is excellent
Prefer male workers for renewal of labor contracts from among all
workers satisfying the criteria for renewing labor contracts

D. Prefer either sex when renewing the labor contract126II. Prohibition of Discrimination against Persons with Disabilities andObligation to Give Reasonable Consideration
The amendment of the Act on Employment Promotion etc. of Persons with Disabilities introduced theprohibition of discrimination against persons with disabilities and obligation to give reasonable considerationin employment (enforced on April 1, 2016).
Targets include persons with physical disabilities, persons with intellectual disabilities, persons with mental
disorders (including persons with developmental disabilities), and persons who have considerable constraints
or extreme difficulties in vocational life over a long period of time due to other mental or physical disabilities,
and are not limited to holders of disability certificates.

1. Prohibition of Discrimination against Persons with Disabilities
Unfair discriminatory treatment of persons on the grounds of existence or non-existence of disabilities is
prohibited in all aspects of employment, including recruitment and employment, wages, assignment, promotion,
vocational training, and fringe benefits (Articles 34 and 35 of the Act on Employment Promotion etc. of Persons
with Disabilities).
[Prohibited discrimination]• Exclude a person on the grounds of having disabilities• Set disadvantageous conditions only for persons with disabilities• Prefer persons without disabilities- Concrete examples of discrimination • Do not accept a job application only on the grounds that a person has disabilities• Assign (or do not assign) specific duties or refuse promotion not based on a person's ability to perform
duties but only on the grounds that a person has disabilities• Prevent only persons with disabilities from receiving vocational training

2. Obligation to Give Reasonable Consideration to Persons with Disabilities
Irrespective of business types or business sizes, all employers are obliged to take measures to secure equal
opportunities for all persons with or without disabilities upon recruitment and employment, and to takemeasures to improve circumstances in the workplace that cause hindrances to persons with disabilities they
employ (Articles 36-2 and 36-3 of the Act on Employment Promotion etc. of Persons with Disabilities).
Employers are to be exempted from the obligation to give reasonable consideration if it imposes an excessive
burden on them.
- Concrete examples of reasonable consideration • Conduct a recruitment interview in writing with a person with hearing impairment or language disorders• Prepare a work manual using figures and illustrations for a person with intellectual disabilities to show
him/her work procedures in an easy-to-understand manner• Prepare and admit use of sunglasses or earplugs for a person with developmental disabilities in orderto reduce hyperesthesia• Adjust the height of a desk and working tables for a person in a wheelchair• Change commuting time in order to avoid the rush hour127

[Employers' responsibility in giving reasonable consideration]
1. Procedures at the time of recruitment and employment[i] A person with disabilities explains circumstances causing hindrances and requests necessary
consideration.
[ii]
When receiving requests, the employer discusses with the person what consideration should begiven.
[iii] The employer explains the details of the reasonable consideration to be given.
When requests from a person with disabilities impose an excessive burden, the employer explains
the reasons why he/she is unable to respond to them and offers options of other easier measures.
2. Procedures after employment[i] The employer ascertains and confirms who need reasonable consideration. Irrespective of whether
requests have been made by persons with disabilities, the employer him/herself checks the necessityof giving any consideration. On this occasion, the employer should seek requests for reasonableconsideration from all workers basically by uniform means such as sending e-mail, delivering
documents, announcement in an in-house magazine targeting all workers.
[ii]
The employer discusses with persons with disabilities to directly confirm the status of theirdisabilities, circumstances causing hindrances in their workplaces, and their intentions concerning
reasonable consideration.
[iii] The employer determines reasonable consideration to be given, while respecting intentions of
persons with disabilities themselves, and informs them of the results. On this occasion, if any requests
from persons with disabilities impose an excessive burden and therefore the employer decided to takeeasier measures, the employer must explain the reason therefor.
3. Development of a consultation system and handling of complaints○ The employer is obliged to develop a consultation system, such as establishing a consultation office,in order to properly respond to consultations from persons with disabilities.
○ Additionally, the employer is required to make efforts to voluntarily resolve complaints from persons
with disabilities concerning prohibition of discrimination against persons with disabilities andreasonable consideration to be given to them.
→ When voluntary resolution is difficult, a dispute settlement assistance system may be utilized.

3. Development of Consultation System, Handling of Complaints, and Dispute
Settlement Assistance System
An employer is obliged to develop a consultation system, such as establishing a consultation office, in orderto properly respond to consultations from persons with disabilities.
Additionally, an employer is required to make efforts to voluntarily resolve complaints from persons withdisabilities concerning prohibition of discrimination against persons with disabilities and reasonableconsideration to be given to them (Article 74-4 of the Act on Employment Promotion etc. of Persons with
Disabilities).
When voluntary resolution is difficult, the following two types of assistance are available as a disputesettlement assistance system.
[Dispute settlement assistance system]• Assistance by a Director of a Labor Bureau (advice, guidanceor recommendation)• Conciliation by a third party (conciliation by the Conciliation
Committee on Employment of Persons with Disabilities)

III. Countermeasures against Sexual Harassment in the Workplace128

Sexual harassment in the workplace is a significant issue for workers, irrespective of gender, and is notsocially permissible.
Sexual harassment, once occurring, often causes both harasses and harassers to resign and worsens humanrelationships within the workplace, and thus significantly damages corporate management.
Therefore, the Equal Employment Opportunity Act requires an employer to establish necessary measures interms of employment management to give advice to workers and prohibits dismissal and other discriminatory
treatment on grounds that a worker has consulted with the employer about sexual harassment or has stated thetruth when cooperating with the employer's responses to such consultation (Article 11 of the Equal
Employment Opportunity Act).
Sexual harassment in the workplace includes that against the same sex.
Additionally, certain language and behavior may fall under sexual harassment irrespective of the otherparty's sexual orientation or gender identity (language and behavior including such terms as "homosexual,""gay," or "lesbian" may lead to sexual harassment). The ideas and cases of sexual harassment and measures tobe taken by employers are explained below.

1. Sexual Harassment in the Workplace(1) Workplaces and workers(Workplaces)
Workplaces are where workers employed by an employer perform duties, including places otherthan the normal workplace if only workers perform duties there. Even a party during off-duty hours, if
it is substantially an extension of the workplace, may fall under the workplace.
[Examples of workplaces]
A client's office, a place to have dinner for business talk with a client, a destination of a business trip,
in a vehicle (in the case of a sales person or bus tour guide, etc.), a customer's house (in the case of an
insurance agent, etc.), a news source's place (in the case of a reporter), etc.
(Workers)
Workers include all workers employed by an employer, not only regularly employed workers but
also non-regular workers, such as part-time workers and contract workers, irrespective of gender. With
regard to dispatched workers, the provisions concerning measures in terms of employment management
apply to employers on both the dispatching side and accepting side.

(2) Sexual language and behavior
Sexual language and behavior are words and deeds involving sexual content.
[Examples of sexual language and behavior][i] Sexual comments
Sexual jokes and teasing, insistent requests for having dinner or dating, intentional disseminationof sexual rumors, and talks or questions about personal experience[ii] Sexual behavior
Forcing someone to have an intimate relationship, unnecessary physical contact, and the
distribution of nude posters or other indecent pictures129

(3) Quid pro quo sexual harassment
Quid pro quo sexual harassment means a situation where a worker suffers any disadvantage, such as
dismissal, demotion, wage reduction, by reason of his/her refusal or resistance to sexual language or
behavior against his/her will in the workplace.
[Typical examples][i]

An employer requested a worker to have an intimate relationship in the office but was rejected,
and later dismissed the worker for that reason.

[ii]

A superior touched a worker's waist and breast, etc. in a vehicle during a business trip but theworker resisted, and the superior later reassigned the worker disadvantageously for that reason.
[iii] An employer regularly talked about a worker's sexual matters publicly in the business office but
received an objection from the worker, and later demoted the worker for that reason.

(4) Hostile environment sexual harassment
Hostile environment sexual harassment means a situation where sexual language and behavior against
a worker's will in the workplace makes the worker's working environment uncomfortable and exerts
negative impact on fulfillment of his/her potential or otherwise causes hindrances to his/her work to alevel that cannot be overlooked.
[Typical examples][i]

An employer often touches a worker's waist and breast, etc. in the office, and the worker suffers
badly and loses the willingness to work.

[ii]

A coworker intentionally and continuously spreads a worker's sexual information among clients,

and the worker suffers badly and cannot concentrate on work.
[iii] Despite opposition from other workers, a coworker views adult websites using a PC for daily
duties, and workers suffer badly and cannot concentrate on work.

2. Measures in Terms of Employment Management to be Taken by Employers
Irrespective of sizes of companies or offices and the circumstances in workplaces, employers must takemeasures as mentioned in (1) to (4) below in order to prevent sexual harassment.

(1) Clarification of employer's policies and dissemination and awareness-raising efforts
In order to prevent harassment in the workplace, it is important for an employer him/herself to firstclarify the policies specifying the details of impermissible harassment in the workplace and presenting
his/her strong will not to permit any harassment, and to disseminate the policies and raise awarenessamong all workers including managers. On that occasion, attention should be paid to the possibility that
language and behavior based on preconceptions about the division of roles between men and women
underlie sexual harassment and to the awareness that elimination of such language and behavior isimportant in enhancing the effects of preventive measures against harassment.
Concrete examples include clearly specifying the details of impermissible harassment and the policy toprohibit harassment in the workplace in the rules of employment, publicizing those basic policies throughan in-house magazine, in-house website or other PR media, and providing related training and lectures.

130

Additionally, the policy to take strict measures against persons who made or committed sexuallyindecent comments or deeds in the workplace and concrete punishments (disciplinary code) should be
provided in the rules of employment or other documents stipulating service rules, and should be
disseminated among all workers including managers to raise their awareness.

(2) Development of a system to properly respond to consultations and complaints
Regarding harassment in the workplace, it is important not only to make responses after occurrence
but also to put in place preventive measures. For that purpose, an employer needs to develop a system toenable workers to easily make consultations and file complaints concerning harassment by clarifying
where to accept consultations and complains, such as [i] appointing personnel in charge of consultationsin advance, [ii] developing a system to respond to consultations, or [iii] outsourcing responses to
consultations to external organizations, and thereby properly and flexibly respond to consultations andcomplaints from workers.
There are various forms of harassment and it is sometimes difficult to judge whether certain language
or behavior falls under harassment.
In some cases, situations are judged as posing no particular problems but may lead to harassment ifleft unaddressed. The scope of consultations and complaints to be accepted should be set broadly enoughfrom the perspective of preventing harassment from occurring and should include cases where situations
do not fall under harassment in the workplace in a strict sense but are likely to lead to harassment or where
judgment as to whether such situations fall under harassment or not is difficult, while taking into accountthe possibility that a victimized worker may hesitate to consult about the harassment and also giving due
consideration to the consulter's physical and mental conditions and how he/she recognized the relevant
language or behavior at that time. For example, a situation that may end up damaging a working
environment if left unaddressed, and a case where language and behavior based on preconceptions about
the division of roles between men and women are likely to cause harassment should be covered.

(3) Prompt and proper responses when harassment has occurred in the workplace
If harassment in the workplace is left unaddressed or inappropriate responses are made therefor, thismay exert a bad influence on a working environment and further cause harassment.
In order to prevent recurrence of harassment in the workplace, it is necessary to promptly and correctly
ascertain the facts and make proper responses in accordance with the circumstances. On that occasion,
not only punishments to the doer but also measures for the victim should be taken properly. Concretemeasures include offering assistance to improve the relationship between the victim and the doer,
conducting reassignment to separate the victim and the doer, and having managers and supervisors orindustrial health staff, etc. provide the victim with counseling on mental health disorders.

(4) Protection of privacy and prohibition of disadvantageous treatment
Information concerning consultations on harassment in the workplace is personal information, and an
employer must take measures to protect privacy of consulters.
It is not permitted to treat workers disadvantageously on the grounds of making consultations on
harassment or offering cooperation for fact finding. Therefore, an employer must prohibit suchdisadvantageous treatment in the company and disseminate that policy among workers to raise awareness.

131IV. Countermeasures against Harassment in Relation to Pregnancy,Childbirth, and Child Care Leave, etc. in the Workplace
Harassment in the workplace in relation to pregnancy, childbirth and child care leave, etc. means a situation
where language and behavior of superiors or coworkers (relating to the pregnancy, childbirth and the use ofchild care leave, etc.) damage the working environment of a female worker who is pregnant or has given birthor a worker, irrespective of gender, who applied for and took child care leave, etc.
Needless to say, the employer him/herself must not commit harassment and also has to take measures toprevent harassment in the workplace in relation to pregnancy, childbirth, and child care leave or family careleave, etc. (Article 11-3 of the Equal Employment Opportunity Act and Article 25 of the Child Care and Family
Care Leave Act).
Incidentally, language and behavior objectively based on the operational necessity from the perspective ofdividing duties and ensuring safety do not fall under harassment.

1. Details of Harassment in Relation to Pregnancy, Childbirth, and Child Care Leave,
etc.
Harassment in the workplace in relation to pregnancy, childbirth and child care leave, etc. consists of "(1)Harassment concerning the use of systems, etc." and "(2) Harassment concerning the circumstances."(1) Harassment concerning the use of systems, etc.
This harassment means a situation where language and behavior in relation to a worker's use of therelevant systems or measures (the systems, etc.) damage the worker's working environment.
[Typical examples][i] A worker consulted with her superior concerning the acquisition of maternity leave before childbirth,
but the superior said "If you take a leave, we will fire you."[ii] A worker consulted with his superior concerning the acquisition of child care leave, but the superior
said "It is unheard of that a male worker takes child care leave." The worker is forced to give up taking
child care leave.
[iii]A superior and coworkers repeatedly or continuously say "We cannot assign significant duties to aperson who limits overtime work." and a worker is forced to do only odd duties, facing hindrances tohis/her work to a level that cannot be overlooked (including further language and behavior after theworker complained that their language and behavior are not acceptable).

(2) Harassment concerning the circumstancesThis harassment means a situation where language and behavior in relation to a worker's pregnancy andchildbirth damages the worker's working environment.
[Typical examples][i] A worker reported her pregnancy to her superior, but the superior said "You should resign soon, as we
will hire another person."[ii] A superior and coworkers repeatedly or continuously say "We cannot entrust duties to a pregnant
woman as she may be absent unexpectedly." and a worker has not been assigned with duties, facing
hindrances to her work to a level that cannot be overlooked (including further language and behavior
after the worker complained that their language and behavior are not acceptable).
[iii]A superior and coworkers repeatedly or continuously say "You should avoid the busy season to get
pregnant." and this causes hindrances to a worker's work to a level that cannot be overlooked (including
further language and behavior after the worker complained that their language and behavior are notacceptable).

132

2. Measures in Terms of Employment Management to be Taken by Employers
Irrespective of sizes of companies or offices and the circumstances in workplaces, employers must takemeasures as mentioned in (1) to (5) below in order to prevent harassment in relation to pregnancy, childbirthand child care leave, etc.
* (2) to (3) and (5) are the same as explained for sexual harassment in III. above. Only (1) and (4) below are
unique for harassment in relation to pregnancy, childbirth and child care leave, etc.

(1)

Clarification of employer's policies and dissemination and awareness-raising efforts
Behind harassment in relation to pregnancy, childbirth and child care leave, etc. lies a work climate to
make it difficult to apply for or use the systems, etc., such as frequent negative language and behavior(language and behavior that implicitly deny other workers' pregnancy and childbirth, etc., including
negative language and behavior against fertility treatment, or implicitly deny the use of the systems, etc.,
excluding the mere presentation of one's own will but including language and behavior not directly targeting
the relevant worker), and insufficient dissemination of information concerning the systems, etc. An
employer needs to endeavor to deepen understanding concerning the systems, etc. of all workers, not limited
to workers using them, and devise a means to make it easier to apply for and use the systems, etc.
Negative language and behavior concerning pregnancy, childbirth and child care leave, etc. include
those not directly targeting the relevant worker. For example, when a couple work at the same company,
negative language and behavior not targeting the person taking child care leave but targeting his/her spouseare likely to cause harassment in relation to pregnancy, childbirth and child care leave, etc.

(2)Development of a system to properly respond to consultations and complaints(3)

Prompt and proper responses when harassment has occurred in the workplace(4)

Measures for eliminating factors that may cause harassment in the workplace in relation to pregnancy
and childbirth, etc. An employer needs to develop operational systems or otherwise take measuresnecessary for eliminating factors that may cause harassment in relation to pregnancy, childbirth andchild care leave, etc. in accordance with the current status of the company, a worker who is pregnant
or has given birth, etc. and other workers.
Concrete measures include proper review of division of duties in order to reduce additional burdens on
workers working with a worker who is pregnant or has given birth, etc.

(5)

Protection of privacy and prohibition of disadvantageous treatment

133

V. Countermeasures against Power Harassment in the Workplace
The Labor Policies Comprehensive Promotion Act requires an employer to establish necessary measures interms of employment management to give advice to workers and prohibits dismissal and other discriminatory
treatment on grounds that a worker has consulted with the employer about power harassment or has stated thetruth when cooperating with the employer's responses to such consultation (Article 30-2 of the Labor Policies
Comprehensive Promotion Act).

1. Power Harassment in the Workplace
Power harassment in the workplace means [i] language and behavior in the workplace backed by a superiorinferior relationship [ii] that go beyond a scope necessary and appropriate in performing duties and [iii] which
damage workers' working environment. These elements [i] to [iii] need to be all satisfied.
Proper operational instructions and guidance that are objectively within a scope necessary and appropriate
in performing duties do not fall under power harassment in the workplace.
Whether specific language or behavior falls under power harassment in the workplace needs to be judged
by comprehensively considering the matters mentioned in (2) below and the level of physical or mental damage
suffered by a worker due to the relevant language or behavior.

(1) Language and behavior backed by a superior-inferior relationshipThis means a situation where the relevant language or behavior is backed by a relationship in which atargeted worker is highly likely to be unable to resist or refuse the person who uses such language or behavior(hereinafter referred to as an "actor") in performing duties.
[Examples of language and behavior backed by a superior-inferior relationship][i] Language and behavior of a person in a superior job position[ii] Language and behavior of a coworker or a subordinate who has necessary knowledge and richexperience in performing duties and without whose cooperation it is difficult to smoothly perform duties[iii] An act by a group of coworkers or subordinates which it is difficult to resist or refuse(2) Language and behavior that go beyond a scope necessary and appropriate in performing duties
This means a situation where the relevant language or behavior is obviously unnecessary for the employer's
business or the mode of the language or behavior is obviously inappropriate in light of social norms.
When making a judgment, it is necessary to comprehensively take into account various elements (purposeof the relevant language and behavior; circumstances and developments leading to the relevant language andbehavior, including whether the targeted worker has conducted any problematic acts and the content and levelof problematic acts, if any; business type and mode; details and nature of duties; mode, frequency andcontinuity of the relevant language and behavior; attributes and physical and mental conditions of the worker;
relationship with the actor, etc.).
On that occasion, it should be noted that in a specific case where a worker's acts cause the relevant language
and behavior, a relative relationship between the content and level of such problematic acts and the mode of asuperior's guidance therefor is a key element. Even if a worker's acts are problematic, language and behavior
that go beyond a scope necessary and appropriate in performing duties, such as denying the worker's personality,
fall under power harassment in the workplace.
[Examples of language and behavior that go beyond a scope necessary and appropriate in performing duties][i] Language and behavior obviously unnecessary in performing duties[ii] Language and behavior significantly deviating from the purpose of duties[iii] Language and behavior inappropriate as a means to perform duties134

[iv] Language and behavior whose mode and means are found to go beyond a scope permissible in lightof social norms, in consideration of the frequency of problematic acts and the number of actors, etc.
(3) Cases where workers' working environment is damaged
This means a situation where workers suffer physically or mentally due to such language or behavior
mentioned in (1) and (2) above, and this exerts serious adverse effects, making it difficult for workers tofulfill their abilities in an unpleasant working environment, thus hindering workers' performance to the levelthat cannot be overlooked.
In this case, it is appropriate to make a judgment based on a criterion of how average workers feel, inother words, whether the relevant language and behavior, when received in a similar situation, would cause
workers in general to feel that their performance was hindered thereby to the level that cannot be overlooked.
The frequency and continuity of language and behavior are taken into consideration, but language andbehavior in a mode to cause strong physical or mental sufferings may damage workers' working environment
even if conducted only once.

(4) Typical types of representative language and behavior that constitute power harassment
Typical types of power harassment are as follows.
[i] Physical attack (violence, insult)[ii] Mental attack (threat, defamation, insult, serious abusive language, etc.)[iii] Separation from human relationships (isolation, ostracizing, disregard)[iv] Excessive demands (forcing duties that are evidently unnecessary or impossible, hindering work)[v] Excessively easy demands (ordering duties of low levels unreasonably removed from the person's
ability and experience, or refusing to assign duties)[vi] Infringement of privacy (excessively intruding on privacy)
Insulting language and behavior relating to another person's sexual orientation and gender identity and socalled "outing" to disclose another person's sexual orientation or gender identity without obtaining his/her
consent may also fall under power harassment in the workplace.
These are non-limitative examples. As judgments may differ depending on circumstances of individual cases,
companies need to respond to consultations broadly, including cases where it is not clear whether they fallunder power harassment in the workplace or not.

2. Measures in Terms of Employment Management to be Taken by Employers
Irrespective of sizes of companies or offices and the circumstances in workplaces, employers must takemeasures as mentioned in (1) to (4) below in order to prevent power harassment in the workplace.
* (1) to (4) are the same as those explained for sexual harassment in III. above.

(1)

Clarification of employer's policies and dissemination and awareness-raising efforts(2)

Development of a system to properly respond to consultations and complaints(3)

Prompt and proper responses when harassment has occurred in the workplace(4) Protection of privacy and prohibition of disadvantageous treatment

135

VI. Obligation to Establish General Employers Action Plan under the
Female Participation Promotion Act, etc. and to Disclose Information
on Women's Active Participation
The Female Participation Promotion Act provides for efforts to be made by general employers, inaddition to efforts by the national and local governments, in order to steadily promote the social participationof women. Specifically, the Act obliges an employer who regularly employs 101 or more workers to [i]ascertain the status of female workers' participation in the company and analyze problems, [ii] establish an
action plan based on the ascertained status and analyzed problems, disseminate it within the company andalso make it public, [iii] notify the competent Prefectural Labour Bureau of the establishment of the action
plan, and [iv] publicize information concerning female workers' participation in the company. An employer
who regularly employs 100 or less workers is required to make efforts for [i] to [iv] above.
Since July 8, 2022, an employer who regularly employs 301 or more workers has come to be obliged toascertain and publicize differences in wages between male workers and female workers.
Out of employers who have established an action plan and filed a notification, those who achieved
excellent participation of female workers can file an application to the competent Prefectural Labour Bureau
and obtain the authorization, "Eruboshi," from the Minister of Health, Labour and Welfare. Furthermore, if
employers who had obtained this authorization have made further advanced efforts and satisfied certain
criteria, they can obtain the special authorization, "Platinum Eruboshi."
Employers who have obtained the authorization and special authorization may use the authorization marksof “Eruboshi” and “Plutinum Eruboshi“as companies that are promoting female participation. They may attach
the "Eruboshi" mark and the "Platinum Eruboshi" mark to their products and job-opening sheets available at
Hello Work to advertise that they are positive in promoting female participation, thereby obtaining chances tosecure excellent personnel or enhance their corporate image and also receive preferential evaluations, etc. inpublic procurement processes.

136Special Regulations Concerning
MinorsI. Age Restrictions
An employer must not employ children until the end of the first 31st of March that occurs on or after the day
when they reach the age of 15 years, in principle (Article 56 of the Labor Standards Act).

II. Limitation on Overtime Work and Work on Days Off
Minors are persons under 18 years of age.
Statutory working hours are strictly applied to minors and overtime work and work on days off areprohibited for minors, in principle. Additionally, an employer must not have minors work under various
variable working hours systems (Article 60 of the Labor Standards Act). However, exceptionally, regarding
minors over 15 and under 18 years of age (excluding the period until the first 31st of March that occurs on orafter the day when they reach 15 years of age), it is permitted:[i] when the working hours for any one day of the week has been reduced to no more than 4 hours, toextend the working hours for the other days of the week up to 10 hours; and[ii] to have them work under a one-month variable working hours system or a one-year variable working
hours system within the scope not exceeding 48 hours per week and not exceeding eight hours per day.
In cases of extraordinary need due to disaster or other unavoidable events, an employer may have minors
work overtime and on days off to the extent that is needed, on the condition of obtaining permission from orfiling a notification to the Director-General of the competent Labour Standards Inspection Office (Article 33of the Labor Standards Act).

III. Prohibition of Work at NightAn employer must not have minors under 18 years of age work at night (from 22:00 to 5:00), in principle(Article 61 of the Labor Standards Act). However, it is permitted:[i] to have males aged 16 years or over work at night when employing them on a shift work basis:[ii] to have minors under 18 years of age work until 22:30 in workplaces where work is done in shifts byobtaining permission from the Director-General of the competent Labour Standards Inspection Office;and[iii] to have minors under 18 years of age work at night to the extent that is needed, when having workers
work overtime or on days off in cases of extraordinary need due to disaster or other unavoidable events(Article 33 of the Labor Standards Act).

IV. Limitation on Work for Minors
As minors are immature physically and mentally, an employer is prohibited to have minors engage in a
total of 45 types of work, such as work dangerous or injurious to their health or welfare (Articles 62 and 63 of
the Labor Standards Act). However, regarding minors receiving vocational training which has received
recognition under the Act for the Promotion of Human Resources Development, an employer may have themengage in certain work out of the dangerous and injurious work shown in (1) below when having obtained
permission from the Director-General of the competent Labour Standards Inspection Office.

137

(1) Dangerous and injurious work[i]Work involving the handling of heavy materials (Article 7 of the Rules on Labor Standards for Minors)
Weight (kg)Age and gender
Aged under 16
Aged 16 or overbut under 18

Intermittent work

Continuous work

Female

12

8

Male

15

10

Female

25

15

Male

30

20

[ii] Work injurious to minors' safety (Article 8 of the Rules on Labor Standards for Minors)
Handling boilers (excluding small boilers ; hereinafter the same applies)(i)

Welding boilers

item (ii)

Operating a crane, derrick, or cargo lifting appliance

item (iii)

Screening of a film other than a slow-burning one

item (iv)

Operating an elevator (with a maximum loading capacity of no less than 2 tons)

item (v)Driving a power-driven rail transporter or motor truck (with a maximum loading capacity of no less than 2 tons)

item (vi)

Operating a power-driven winch (excluding an electrical hoist and air hoist), transporter or cableway
Checking, repairing or operating a charged electric furnace (over 750V (DC) and 300V (AC)) or its support

item
(vii)
item
(viii)

Cleaning, feeding, checking or repairing an engine or a power transfer device from an engine to a middle shaft at work, oritem (ix)changing belts therein
Slinging operation for a crane, derrick, etc. (excluding assistance)

item (xi)Lighting a liquid burner (with maximum consumption of no less than 400L per hour)

item (xi)Operating power-driven civil engineering machinery or ship freight handling machinery
Roll kneading of rubber, rubber compound, or synthetic resin
Supplying lumber to a circular saw (with a diameter of 250mm or larger) or to a band mill (with a diameter of 750mm or larger)
Adjusting and cleaning molds of a power-driven press machine or shear blades
Exchanging, etc. track vehicles within a switching yard
Solo work in a track (a line-of-sight distance of 400m or less within a tunnel, a place with frequent vehicle traffic)
Metal processing using a press machine or forging machine powered with steam or compressed air
Processing steel plate with a thickness of 8mm or more using a power-driven press machine or shears
Handling a hand feed planer or short axis chamfering machine
Supplying materials to a crushing machine or smasher of rocks or minerals
Working in a place with a risk of land slide or in a hole with a depth of 5m or more
Working at a place with a risk of injury due to fall (a height of 5m or more)
Assembling, demolishing or changing scaffolds (excluding assistance on the ground)Cutting a tree (with a breast-height diameter of 350mm or larger)
Carrying out lumber using a skyline logging cable crane, logging cableway, etc.
Manufacturing or handling gunpowder, explosives, or initiating devices that may explode
Manufacturing or handling dangerous materials (explosives, etc. set forth in Appended Table 1 of the Industrial Safety and
Health Act) that may explode, ignite or catch fire
Manufacturing or using compressed gas or liquefied gas

138

item
(xii)
item
(xiii)
item
(xiv)
item
(xv)
item
(xvi)
item
(xvii)
item(xviii)
item
(xix)
item
(xxi)
item
(xxii)
item(xxiii)item(xxiv)
item
(xxv)
item
(xxvi)
item(xxvii)item(xxviii)
item(xxix)
item(xxxi)

[iii] Work injurious to minors' health (Article 8 of the Rules on Labor Standards for Minors)
Handling harmful materials, such as mercury, arsenic, yellow phosphorus, hydrofluoric acid, hydrochloric acid, andnitric acid
Working in a place exuding gas, vapor or dust of harmful materials, such as lead, mercury, and chromium
Working in a place where a large amount of dust or powder of soil and stones scatters
Working while being exposed to radium rays, X-rays and other harmful radiation
Handling a large amount of materials of high temperatures and working in an extremely hot place
Handling a large amount of materials of low temperatures and working in an extremely cold place
Working under an extraordinary atmospheric pressure
Using machinery or equipment causing strong vibrations to the body, such as a rock drill and tacker
Working in a place with extreme noiseWork posing a risk of significant contamination with pathogens

item(xxxii)item(xxxiii)
item(xxxiv)
item(xxxv)
item(xxxvi)item(xxxvii)
item(xxxvii
i)
item(xxxix)
item
(xl)
item
(xli)

[iv] Work injurious to minors' welfare (Article 8 of the Rules on Labor Standards for Minors)
item(xlii)
item(xliii)item(xliv)
item(xlv)

Incineration, cleaning or slaughtering
Working in a prison or asylum
Serving at banquets having alcoholic beverages
Entertainment work for special events(2) Prohibition of belowground work
Belowground work is prohibited for minors.

V. Others
1. Labor Contracts of Minors
A labor contract must be concluded with the worker him/herself even in the case of a minor.
A person who has parental authority for, or is the legal guardian of a minor, or the Director-General of thecompetent Labour Standards Inspection Office, may cancel a labor contract prospectively if they consider thecontract disadvantageous to the minor (Article 58 of the Labor Standards).

2. Minors' Request for Wages
Minors may request their wages independently. A person who has parental authority for, or is the legal
guardian of a minor must not receive the wages earned by the minor in his/her place (Article 59 of the Labor
Standards).

3. Keeping of Minors' Age CertificatesAn employer who employs a minor under 18 years of age must keep at the workplace a family register
certificate that certifies the age of the minor (Article 57 of the Labor Standards).
It suffices to keep a certificate of matters entered in a residence certificate that certifies the relevant minor's
name and date of birth (Kihatsu No.83 and Fuhatsu No.40 of February 17, 1975).

139

Termination of Labor Relationship,etc.
Termination of a labor relationship means that a worker leaves the company in any form and his/her
employment relationship with the company ends. Regarding termination of a labor relationship, employers
must pay attention to the following:

Resignation
Resignation is a worker's voluntary termination of his/her labor contract. Resignation is governed by the
Civil Code because the Labor Standards Act has no provision for resignation. Under the Civil Code,resignation becomes effective in two weeks from the date upon which the worker expresses his/her intention
to resign (Article 627 of the Civil Code). However, a worker whose wages are fixed for a certain period,
such as workers receiving monthly wages, may not resign until the end of the current period and must express
his/her intention to resign in the first half of the current period (Article 627, paragraph (2) of the Civil Code).
(e.g.) If a worker who works for monthly wages during a period from the first day to the last day of themonth wants to resign on September 30, the worker must express his/her intention to resign no later
than September 15.

Mandatory retirement
A mandatory retirement system is a system in which a labor contract is automatically terminated when
the worker reaches a certain age.
In cases where employers set the retirement age of their workers, such retirement age shall not be lower
than 60 (Article 8 of the Act on Stabilization of Employment of Elderly Persons). Additionally, an employer
who sets the retirement age below 65 years of age must take measures for securing stable employment for
elderly workers until 65 years of age, such as(i) raising that retirement age to 65 years of age,(ii) introducing a continuous employment system until 65 years of age (a system to continue employmentof all of workers who wish to continue to be employed until 65 years of age), or(iii) abolishing the mandatory retirement age(Article 9 of the Act on Stabilization of Employment of Elderly Persons).
Furthermore, an employer who sets the retirement age below 70 years of age or who maintains acontinuous employment system up to the age below 70 must make efforts to take any of the following measures
for securing stable employment for elderly workers until 70 years of age:(i) raising the mandatory retirement age to 70 years of age,(ii) introducing a continuous employment system until 70 years of age (including systems of other
employers),(iii) abolishing the mandatory retirement age,(iv) introducing a system to conclude a continuous business consignment contract with workers until 70
years of age, or(v) introducing a system that will enable workers to continuously engage in social contribution businesses
until 70 years of age(Article 10-2 of the Act on Stabilization of Employment of Elderly Persons).

Dismissal
Dismissal is an employer's one-sided termination of a labor contract.
* Grounds for dismissal must be specified in the rules of employment.

I. Resignation
Regarding resignation, or termination of a labor contract based on a worker's expression of his/her intention
to resign, the Labor Standards Act provides no particular restrictions. However, under the Civil Code,resignation becomes effective in two weeks from the date upon which the worker expresses his/her intention
to resign (Article 627, paragraph (1) of the Civil Code). Nevertheless, a worker whose wages are fixed for acertain period, such as workers receiving monthly wages, may not resign until the end of the current period

140

and must express his/her intention to resign in the first half of the current period. For example, a worker whose
wages are decided based on a calendar month must express his/her intention to resign no later than September
15 in order to resign on October 1, and the period is not necessarily two weeks (Article 627, paragraph (2) of
the Civil Code).

II. Dismissal
Effect of dismissal○ Open-ended labor contract
Article 16 of the Labor Contracts Act provides that a dismissal be treated as an abuse of right and be
void if it lacks objectively reasonable grounds and is not considered to be appropriate in general social
terms.
○ Fixed-term labor contract with a fixed term
Article 17, paragraph (1) of the Labor Contracts Act provides that an employer may not dismiss a
worker working under a fixed-term labor contract until the expiration of the term unless there areunavoidable circumstances.

Dismissal due to reorganization
Dismissal due to reorganization is dismissal intended for staff cutbacks by reason of deteriorating
business conditions. As court precedents suggest, an employer who dismisses workers due to reorganization
should negotiate with labor unions, give explanations to workers and carefully consider the following:•

Whether staff cutbacks are needed•

Whether the employer has made all possible efforts to avoid dismissal•

Whether the employer has selected workers to be dismissed according to objective and reasonable
standards•

Whether the process of dismissal is appropriate*

To avoid staff cutbacks, employers can shorten working hours (work sharing is one of the options).

*

To avoid dismissal, employers can reassign or temporarily transfer workers or offer early retirement
to workers.

*

To make the process of dismissal appropriate, employers are required to consult with labor unions
or to explain to workers about the dismissal.

Disciplinary dismissal
Disciplinary dismissal is dismissal of a worker as disciplinary action against the worker for his/her
malicious violation of rules. Employers must specify the kinds, degrees and requirements of disciplinary
dismissal in the rules of employment.

Ordinary dismissal
Ordinary dismissal is dismissal of a worker who cannot perform his/her duties. Court precedents suggestthat ordinary dismissal can apply to the following workers:•

Workers who show significantly poor work performance and are unlikely to improve despite
guidance•

Workers who are unlikely to return to work for a long time for health reasons•

Workers who cause work-related difficulties due to a significant lack of cooperative spirit and areunlikely to improve141

Statutory restrictions on dismissal
Laws prohibit dismissal in the following cases:[i]

Dismissal during a period of absence from work for injuries or diseases in the course of businessor within 30 days thereafter (Article 19 of the Labor Standards Act)

[ii]

Dismissal during a period of absence from work before and after childbirth or within 30 days
thereafter (Article 19 of the Labor Standards Act)

[iii]

Dismissal by reason of the nationality, creed or social status of a worker (Article 3 of the Labor
Standards Act)

[iv]

Dismissal by reason of a worker's refusal of the discretionary work system (Article 38-4, paragraph(1) of the Labor Standards Act)[v]

Dismissal by reason of giving a report to the Labour Standards Inspection Office (Article 104,
paragraph (2) of the Labor Standards Act)

[vi]

Dismissal by reason of being a member of a labor union or performing a justifiable act of a labor
union or for other similar reasons (Article 7 of the Labor Union Act)

[vii]

Dismissal by reason of a worker's request for dispute settlement assistance or conciliation underthe Act on Employment Promotion etc. of Persons with Disabilities (Articles 74-6, paragraph (2)and 74-7, paragraph (2) of the Act on Employment Promotion etc. of Persons with Disabilities)[viii] Dismissal on the basis of sex (Article 6 of the Equal Employment Opportunity Act)
[ix]

Dismissal by reason of a female worker’s marriage, pregnancy, childbirth or absence from work
before and after childbirth or for other similar reasons (Article 9 of the Equal Employment
Opportunity Act)[x]

Dismissal by reason of a worker's request for dispute settlement assistance or conciliation under
the Equal Employment Opportunity Act (Article 17, paragraph (2) and Article 18, paragraph (2)of the Equal Employment Opportunity Act)

[xi]

Dismissal by reason of a worker's request for dispute settlement assistance or conciliation under
the Labor Policies Comprehensive Promotion Act (Article 30-5, paragraph (2) and Article 30-6,
paragraph (2) of the Labor Policies Comprehensive Promotion Act)

[xii]

Dismissal by reason of a worker's consultation regarding harassment in the workplace (Article 11,
paragraph (2) and Article 11-3, paragraph (2) of the Equal Employment Opportunity Act, Article
30-2, paragraph (2) of the Labor Policies Comprehensive Promotion Act, and Article 25, paragraph(2) of the Child Care and Family Care Leave Act)[xiii] Dismissal by reason of a worker's request for confirmation or application of special provisions
concerning the insured elderly under the Employment Insurance Act (Article 73 of the
Employment Insurance Act)[xiv] Dismissal by reason of a worker's report of a violation to the Act for Securing the Proper Operationof Worker Dispatching Undertakings and Improved Working Conditions for Dispatched Workers(hereinafter referred to as the "Worker Dispatching Act") (Article 49-3, paragraph (2) of the Worker
Dispatching Act)

142

[xv]

Dismissal by reason of a worker's report of a violation to the Port Labor Act (Articles 49-3,
paragraph (2) of the Worker Dispatching Act as applied by replacing the terms pursuant to Article
23 of the Port Labor Act)[xvi] Dismissal by reason of a worker's report of a violation to the provision concerning businesses forsecuring employment opportunities for construction workers under the Act on the Improvement of
Employment of Construction Workers (Article 49-3, paragraph (2) of the Worker Dispatching Act
as applied by replacing the terms pursuant to Article 44 of the Act on the Improvement of
Employment of Construction Workers)[xvii] Dismissal by reason of a worker's request for or acquisition of child care leave or family care leave,
etc. (Articles 10, 16, 16-4, 16-7, 16-10, 18-2, 20-2, Article 21, paragraph (2), and Article 23-2 of
the Child Care and Family Care Leave Act)[xviii] Dismissal by reason of a worker's request for dispute settlement assistance or conciliation for a
dispute under the Child Care and Family Care Leave Act (Article 52-4, paragraph (2) and Article
52-5, paragraph (2) of the Child Care and Family Care Leave Act)[xix] Dismissal by reason of a worker's request for explanations concerning the details of the differencein treatment from ordinary workers and the grounds thereof, etc. (Article 14, paragraph (3) of thePart-Time and Fixed-Term Workers Act)[xx]

Dismissal by reason of a worker's request for dispute settlement assistance or conciliation for a
dispute under the Part-Time and Fixed-Term Workers Act (Article 24, paragraph (2) and Article
25, paragraph (2) of the Part-Time and Fixed-Term Workers Act)[xxi] Dismissal by reason of a worker's request for assistance and application for mediation to thedirector of the Prefectural Labour Bureau in resolving an individual labor-related dispute (Article
4, paragraph (3) and Article 5, paragraph (2) of the Act on Promoting the Resolution of Individual
Labor-Related Disputes)[xxii] Dismissal by reason of whistleblowing (Article 3 of the Whistleblower Protection Act)[xxiii] Dismissal by reason of a worker's acquisition of leave to execute the duties of a saiban-in (layjudge) or for other similar reasons (Article 100 of the Act on Criminal Trials with Participation of
Saiban-in)143

1. Procedures for Dismissal
The Labor Standards Act provides that an employer who intends to dismiss a worker must undertake certain
procedures, such as providing advance notice (Article 20 of the Labor Standards Act).

(1) Advance notice of dismissal
When an employer intends to dismiss a worker, the employer must provide at least 30 days' advancenotice (Article 20 of the Labor Standards Act).
For example, when intending to dismiss a worker on October 1 (to have the worker work until
September 30), an employer must provide advance notice of dismissal on August 31. A notice needs tospecify the date of dismissal concretely instead of using an ambiguous expression such as "30 days later."
Verbal advance notice is also effective, but it is preferable to provide advance notice in writing also
from the perspective of preventing future trouble.

(2) Clarification of the reason for dismissal
A worker who has received advance notice of dismissal may request the employer to issue a certificate
in relation to the reason for said dismissal even before being dismissed (Article 22, paragraph (2) of theLabor Standards Act).
This provision is based on the idea that in order to prevent a dispute concerning dismissal and achieve
prompt settlement, it is effective to clarify the issues in advance and substantially promote talks between
labor and management concerning the reasonableness of the reason for dismissal by the day on which thedismissal becomes effective. Therefore, a worker who has received advance notice of dismissal is allowed
to request the employer to issue a certificate describing the reason for dismissal, in addition to theconventional certificate to be issued upon separation from employment, even during a period from theday of receiving advance notice to the day of separation from employment. An employer who receives
such request is required to issue the certificate as requested without delay.
Relationship between paragraph (1) and paragraph (2) of Article
22 of the Labor Standards Act
Even after the elapse of theadvance notice period, an
employer is obliged to issue thecertificate as prescribed in
Article 22, paragraph (2)Advance notice period

Article 22, paragraph (2)A worker can request theemployer to issue a certificateof the reason of dismissal even
before being dismissed

AdvancenoticeDay ofdismissal
Article 22, paragraph (1)Certificate upon separation from
employment
・Period of employment and type ofoccupation
・Position in the business・Wages and the reason for separationfrom employment (including thereason for dismissal)

144

The reason for dismissal needs to be indicated concretely. In the case of dismissal due to the existenceof a fact falling under any of the provisions of the rules of employment, etc., the details of the relevant
provisions and the developments leading to that fact must be entered in the certificate (see Certificate of
Reason for Dismissal (example) below).

145

< Certificate of Reason for Dismissal (example) >To
We hereby certify the reason for the dismissal for which we provided advance notice dated MM/DD/YY.
MM/DD/YY
Name of the company:
Name of the employer:[Reasons for Dismissal]*1, *2
1. Dismissal due to unavoidable circumstances such as natural disasters(more specifically, it has become impossible to continue business due to)

2. Dismissal due to our operational needs such as downsizing(more specifically, the company)

3. Dismissal due to your serious violation of an operational order(more specifically, you)

4. Dismissal due to your misconduct related to work
(more specifically, you)

5. Dismissal due to your poor work attitude or performance(more specifically, you)

6. Dismissal due to other reason(more specifically,*1)

Circle the applicable option and state the reason concretely in the parentheses.

*2 Workplaces subject to the obligation to establish rules of employment must state the applicable reason for
dismissal provided in the rules of employment, irrespective of the example above.

146

(3) Allowance for dismissal without advance notice
When an employer does not provide advance notice of dismissal as mentioned in (1) above, the employer
must pay the worker the average wage he/she would earn in working for a period of not less than 30 days
(Article 20 of the Labor Standards Act).
If the advance notice period is less than 30 days, an employer must pay the average wage for the daysin shortage. For example, when the advance notice period is only 20 days, an employer must pay theaverage wage for the 10 days shortage.

(4) Exclusion from application of obligation to provide advance notice, etc.
When an employer dismisses any of the following workers, provision of advance notice is notmandatory under the Labor Standards Act (Article 21 of the Labor Standards Act).
[i]

Workers employed on a daily basis[ii]

Workers employed for a fixed period not longer than two months[iii] Workers employed for seasonal work for a fixed period not longer than four months[iv]

Workers in a probationary period

However, when a worker falling under [i] is employed continuously for longer than one month, whena worker falling under [ii] or [iii] is employed continuously for longer than the fixed period, and when aworker falling under [iv] is employed continuously for longer than 14 days, an employer must provide
advance notice of dismissal or pay an allowance for dismissal without advance notice.

(5) Cases where advance notice of dismissal is not required
A. In the event of a natural disaster or other unavoidable circumstances
If it becomes impossible to continue business due to a natural disaster or other unavoidable
circumstances, an employer may dismiss workers without providing advance notice or paying theallowance by obtaining approval of the Director-General of the competent Labour Standards Inspection
Office in advance (Article 20 of the Labor Standards Act).
B. When there are causes attributable to the worker
When there are any causes attributable to a worker that justify immediate dismissal, an employer
may dismiss the relevant worker immediately without providing advance notice or paying theallowance by obtaining approval of the Director-General of the competent Labour Standards Inspection
Office in advance.
Whether to grant this approval is judged on a case-by-case basis by comprehensively taking into
account the relevant worker's status, responsibilities, the years of service, job performance and otherfactors.
When an employer dismisses a worker without obtaining approval of the Director-General of thecompetent Labour Standards Inspection Office, the employer must provide advance notice or pay anallowance for dismissal without advance notice as usual.

147III. Termination of Labor Relationship upon Expiration of Labor Contract
Term
1. Expiration of the Labor Contract Term
(1) Termination upon expiration of labor contract term
In principle, labor contracts must not be concluded for a period exceeding three years (Article 14,
paragraph (1) of the Labor Standards Act).
When hiring a part-time worker by fixing a contract term, an employer needs to determine the term of alabor contract within this limit (see "Chapter 3: III. Term of Labor Contracts" for the term of labor contracts).
A labor contract with a fixed term is naturally terminated upon the expiration of that term without any
manifestation of intentions from either side.
However, under such circumstances as where a labor contract with a fixed term has been repeatedly
renewed and it is found that a worker has reasonable grounds to expect that he/she will be continuously
employed under the same conditions even after the expiration of the contract term, or where a labor contract
is considered to be substantially equivalent to a labor contract without a fixed term, if an employer intends
to terminate the labor contract upon the expiration of the contract term (non-renewal of employment), thelegal principle of non-renewal of employment mentioned in (2) below applies. In this case, the reason for
non-renewal of employment must be objectively reasonable and appropriate in general social terms in thesame manner as in the case of dismissal.
Incidentally, when renewing labor contracts upon the expiration of the contract term, it should be notedthat any different treatment between men and women may fall under a violation to the Equal Employment
Opportunity Act (Article 6, paragraph (4) of the Equal Employment Opportunity Act).

(2) Legal principle of non-renewal of employment (Article 19 of the Labor Contracts Act)A labor contract with a fixed term is terminated upon the expiration of that term, but disputes often arise
due to non-renewal of employment after repeated renewal of labor contracts. Therefore, it is necessary to
clarify rules concerning renewal of fixed-term labor contracts in advance to prevent and settle disputes due
to non-renewal of employment. Article 19 of the Labor Contracts Act, which was enforced on August 10,
2012, prescribes the legal principle of non-renewal of employment, which had been established throughSupreme Court judgments, to dismiss non-renewal in certain cases and consider that the relevant fixed-termlabor contract has been concluded or renewed.
Article 19, item (i) of the Labor Contracts Act prescribes the requirements presented in the Supreme
Court Judgment rendered on the Toshiba Yanagimachi Factory Case (Judgment of the First Petty Bench of
the Supreme Court on July 22, 1974), wherein the Supreme Court ruled that the legal principle of dismissal
should be applied by analogy to a fixed-term labor contract that has been naturally renewed each time when
the contract term expires and has substantially been equivalent to a labor contract without a fixed term. Item(ii) of the same Article prescribes the requirements presented in the Supreme Court Judgment rendered on
the Hitachi Medico Case (Judgment of the First Petty Bench of the Supreme Court on December 4, 1986),
wherein the Supreme Court ruled that it can be construed that the legal principle of dismissal may be appliedby analogy to a case where reasonableness can be found in a worker's expectation to be continuously
employed after the expiration of his/her fixed-term labor contract.
Article 19 of the Labor Contracts Act provides that if non-renewal of employment is found to beequivalent to dismissal in general social terms as a result of repeated renewal of a fixed-term labor contract(item (i)) or if reasonable grounds can be found for a worker to expect that his/her fixed-term labor contract
will be renewed upon the expiration thereof (item (ii)), and when non-renewal of employment by an
employer lacks objectively reasonable grounds and is found inappropriate in general social terms, such nonrenewal of employment cannot be admitted and it should be construed that the employer has agreed to therelevant worker's application for renewal or conclusion of a fixed-term labor contract under the same148

working conditions as stipulated in the former fixed-term labor contract and the fixed-term labor contract is
to be established under the same working conditions (including the contract term).
Whether this legal principle of non-renewal of employment can be applied or not is to be judged on acase-by-case basis by comprehensively taking into account whether the relevant employment is temporary
or regular, the number of times of contract renewal, total period of employment, status of management of
the contract terms, whether an employer has suggested continuation of employment and other factors.

(3) System of conversion to an open-ended labor contract (Article 18 of the Labor Contracts Act)
Article 18, paragraph (1) of the Labor Contracts Act provides that if a worker whose total contract termof two or more fixed-term labor contracts concluded with the same employer (hereinafter referred to as the"total contract term") exceeds five years applies to the employer for conclusion to an open-ended labor
contract before the date on which the current effective fixed-term labor contract expires, the employer will
be deemed to have accepted that application, and that an open-ended labor contract will be formed underwhich that worker will start providing labor on the day following the date on which the currently effective
fixed-term labor expires.
If an employer intends to avoid the operation of this rule and sets waiver of the right to apply forconversion to an open-ended labor contract as conditions for contract renewal in advance, such act eventually
forces workers, who are afraid of losing employment, to agree to the waiver of the right and undermines the
purpose of Article 18 of the Labor Contracts Act. Forced manifestation of intention of fixed-term workers
in this manner is against public policy and is considered to be void. Moreover, it is not desirable in light ofthe purport of that Article for an employer to terminate employment before the right of a worker to apply forconversion to an open-ended labor contract arises or otherwise dismiss a worker during the term of a labor
contract, with the intention of avoiding the operation of this rule.
* As a result of the revisions of the Regulation for Enforcement of the Labor Standards Act and otherlegislation, an employer will be obliged to clearly indicate the following, when the employer concludes
a labor contract on and after April 1, 2024.
[i] Whether or not there is an upper limit of renewal, and its details, upon employment of a fixedterm worker[ii]

To the effect that the right to apply for conversion to an open-ended labor contract will arise

and the working conditions after the conversion to an open-ended labor contract, upon renewal of
the fixed-term labor contract as a result of which the right to apply for conversion to an openended labor contract arises
Similarly, on and after April 1, 2024, when, after the conclusion of a fixed-term labor contract, an
employer intends to set or lower an upper limit of the total contract term or the number of renewals of
the fixed-term labor contract upon its changes or renewal, the employer will be obliged to explain thereasons to the worker in advance. When the employer clearly indicates the working conditions after theconversion to an open-ended labor contract mentioned in [ii] above, the employer will have theobligation to make efforts to explain matters to which it gave consideration to the balance according to
the actual conditions of work to the worker in prescribing the working conditions.
Article 3, paragraph (2) of the Labor Contracts Act
A labor contract is to be concluded or changed between a worker and an employer while giving
consideration to the balance of treatment according to the actual conditions of work.

149

2. Expiration of Period of Administrative Leave
Administrative leave is a system under which when a worker cannot engage in work for a considerable
period of time under his/her own circumstances such as private or public injury or disease or due to performing
public duties, he/she is exempted from his/her obligation to engage in work while maintaining employment.
This is adopted in many workplaces.
In some cases, rules of employment provide that a worker who cannot come back to work after the expirationof the period of administrative leave should resign. Such provision is generally construed to stipulate automatic
termination of a labor contract as in the case of mandatory retirement. Therefore, in this case, an employer does
not need to undertake procedures for dismissal, such as providing advance notice.
However, how to stipulate and operate a system concerning termination of a labor contract upon the
expiration of the period of administrative leave varies by workplace, and the applicability needs to be judged
in accordance with the circumstances.

150

IV. Termination of Labor Relationship upon Mandatory Retirement
The Act on Stabilization of Employment of Elderly Persons provides that if an employer fixes the
mandatory retirement age for workers he/she employs, that age must not be below 60 years of age (Article 8),
and the Equal Employment Opportunity Act prohibits discriminatory treatment on the basis of sex with regard
to mandatory retirement age and dismissal (Article 6, paragraph (4)). Therefore, it is not permissible to set
different mandatory retirement ages, such as 65 years of age for male workers and 60 years of age for female
workers.
Additionally, an employer who sets the retirement age below 65 years of age must take measures for securing
employment for elderly persons, such as (i) raising that retirement age up to 65 years of age, (ii) introducing acontinuous employment system up to 65 years of age, or (iii) abolishing the mandatory retirement age, in order
to secure stable employment of the elderly workers he/she employs until they reach 65 years of age (Article 9of the Act on Stabilization of Employment of Elderly Persons).
Furthermore, an employer who sets the retirement age (limited to that over 65 but below 70 years of age) or
who has introduced a continuous employment system up to the age below 70 must make efforts to take any ofthe measures of (i) raising the mandatory retirement age up to 70 years of age, (ii) introducing a continuous
employment system up to 70 years of age, (iii) abolishing the mandatory retirement age, (iv) introducing asystem to conclude a business consignment contract with workers continuously until the age of 70, or (v)introducing a system to enable workers to engage in social contribution businesses continuously until the ageof 70, in order to secure job opportunities for the elderly workers he/she employs during the period when they
are from 65 up to 70 years of age (Article 10-2 of the Act on Stabilization of Employment of Elderly Persons).

* Outline of the measures for securing employment/job opportunities for elderly persons
A. Obligation to take measures for securing employment for elderly persons
An employer who sets the retirement age below 65 years of age must take some of the following
measures in order to secure stable employment of the elderly workers he/she employs until they reach
65 years of age.
[i]
Raising of mandatory retirement age up to 65[ii]
Introduction of a continuous employment system (referring to a system of continuing to employ
all elderly persons currently employed after the mandatory retirement age, if they wish to be
employed; the same applies hereinafter) up to 65 of age* Continuous employment by the company or a specially related employer (so-called groupcompany)[iii] Abolition of the mandatory retirement age
Employment patterns must not necessarily be in line with the workers' requests in terms of job types
or working conditions. Various patterns including a short-hour work system or an alternate-day shift,
not limited to regular employment, are permissible if they meet the purpose of the system.
B. Setting of eligibility criteria for a continuous employment system (measures for securing employment
for elderly persons)
Formerly, it was permitted to limit eligible elderly workers when introducing a continuous
employment system set forth in A.[ii] above by concluding a labor-management agreement. However,such eligibility criteria were basically abolished on April 1, 2013, onward and an employer who
introduces a continuous employment system needs to put in place a system covering all workers whowish to be employed continuously.
However, as transitional measures, if eligibility criteria for a continuous employment system had
been established under a labor-management agreement by March 31, 2013, those criteria may becontinuously applied until March 31, 2025 only to persons over the ages of those starting to receive theproportionate payment of employees' pension benefits (this does not apply when a labor-managementagreement was newly concluded in April 2013 onward).

151

(Reference) Eligible ages for proportionate payment of employees' pension benefits
From April 1, 2013, to March 31, 2016

61 years of age

From April 1, 2016, to March 31, 201962 years of age

From April 1, 2019, to March 31, 2022

63 years of age

From April 1, 2022, to March 31, 2025

64 years of age

C. Obligation to make efforts to take measures for securing job opportunities for elderly persons
An employer who sets the retirement age (limited to that over 65 but below 70 years of age) or who
has introduced a continuous employment system up to the age below 70 must make efforts to take anyof the following measures in order to secure job opportunities for the elderly workers he/she employs
during the period when they are from 65 up to 70 years of age.
[i]

Raising of the mandatory retirement age up to 70 years of age[ii]

Introduction of a continuous employment system up to 70 years of age* Continuous employment by the company or a specially related employer or by any other company[iii]

Abolition of the mandatory retirement age[iv]

Introduction of a system to conclude a business consignment contract with workers

continuously until the age of 70[v]

Introduction of a system to enable workers to engage in social contribution businesses (limited

to businesses conducted by the employer or a body to which the employer entrusted or madecontributions (provision of funds), etc.) continuously until the age of 70* Limited to employment for compensation (elderly persons are paid for engaging in duties).
Which of these measures is to be taken should be decided through sufficient consultations between
labor and management and it is preferable that measures are taken in accordance with the needs ofelderly persons.
D. Setting of eligibility criteria for a continuous employment system (measures for securing job
opportunities for elderly persons)Regarding a continuous employment system up to 70 years of age set forth in C.[ii] above, an
employer is obliged to make efforts for the introduction. Accordingly, an employer may set eligibility
criteria for a system for workers aged 65 or older to limit the coverage. When setting eligibility criteria
for a continuous employment system for workers aged 65 or older, details should preferably be
determined in accordance with the circumstances of individual companies through sufficientconsultations between labor and management.
However, even if eligibility criteria have been set through sufficient consultations between labor andmanagement, if the criteria are against the purport of the Act on Stabilization of Employment of Elderly
Persons or other labor-related laws and regulations, such as exhibiting an employer's arbitrary intention
to exclude elderly persons, or the criteria are contrary to public policy, such criteria are not admitted.
E. Measures to support start-ups, etc.

152

The measures set forth in C.[iv] and [v] above are measures not through employment and these arecollectively referred to as measures to support start-ups, etc.
When taking measures to support start-ups, etc., labor-related laws and regulations are not applied
apart from measures through employment. Therefore, the following procedures (1) to (3) need to beundertaken.
(1) Prepare a plan concerning the implementation of the measures to support start-ups, etc. (details of
the duties and compensation to be paid to elderly persons, etc.).
(2) Obtain consent regarding the plan mentioned in (1) from the labor union consisting of a majority of
the workers.
(3) Disseminate the plan for which the consent mentioned in (2) was obtained broadly among workers.
After introducing a system through the procedures (1) to (3), the employer needs to conclude abusiness consignment contract or a contract for the engagement in social contribution businesses witheach of the elderly persons in line with the relevant plan.
F. Cases where reasons for dismissal exist
Health conditions of elderly persons vary by individuals and some may be considered to beunsuitable for continuing employment based on the status of their past engagement in work.
Accordingly, the Guidelines concerning the implementation and operation of the measures for securing
employment/job opportunities for elderly persons permit employers not to continue employment of anelderly worker if the worker is found unable to work due to physical or mental disorder or if the worker's
work attitude has been extremely bad and thus will not be able to fulfil duties as an employee, orotherwise reasons for dismissal or resignation (excluding those relating to age) specified in the rules of
employment are found.

153

< Example of rules concerning retirement age, etc.>

A case where the mandatory retirement age is 60 years of age and the eligibility criteria forcontinuous employment thereafter are established as transitional measures (IV. A.[ii] and B.)
Article ○○Mandatory retirement age is 60 years of age and employees are to retire as of the last day of themonth in which they reach 60 years of age.
1. Notwithstanding the provisions of the preceding paragraph, regarding a person who wishes to becontinuously employed after mandatory retirement and to whom none of the reasons for dismissal
or resignation applies, if the person satisfies all of the criteria set forth in the following items(hereinafter simply referred to as the "criteria"), the person is to be continuously employed until theage of 65, and if the person does not satisfy any of the criteria, the person is to be continuously
employed until the age specified under the criteria, as provided for by a labor-managementagreement based on Article 9, paragraph (2) of the Act on Stabilization of Employment of Elderly
Persons prior to the amendment that is to remain in force pursuant to paragraph (3) of the
Supplementary Provisions of the Act for Partially Amending the Act on Stabilization of
Employment of Elderly Persons (Act No. 78 of 2012):(1) A person whose personnel evaluation has been above 〇〇 for the past 〇 years(2) A person whose attendance rate has been above 〇% for the past 〇 years(3) A person who is judged to have no problem in pursuing duties by an industrial physician basedon the results of the medical examinations for the past 〇 years
2. In the case referred to in the preceding paragraph, the criteria during the period set forth in the lefthand column of the following table are to be applied to persons of age above the age respectively set
forth in the right-hand column of the table, in accordance with the category set forth in the left-handcolumn of the table.
From April 1, 2013, to March 31, 2016

61 years ofage
62 years ofage
63 years ofage
64 years ofage

From April 1, 2016, to March 31, 2019
From April 1, 2019, to March 31, 2022
From April 1, 2022, to March 31, 2025

154

V. Procedures upon Termination of Labor Relationship
1. Payment of Wages and Return of Money and Goods
In the event of a worker's death or separation from employment (including dismissal), if a right holder
requests, an employer is required to, within seven days, pay the wages and return the reserve funds, security
deposits, savings, and any other money and goods to which the worker is rightfully entitled, regardless of thename by which such money and goods may be called (Article 23 of the Labor Standards Act).
When a worker has separated from employment, the right holder is the worker him/herself. When a worker
has died, the right holder is the heir(s) to the worker's estate (or when the rules of retirement allowances specify
any recipient of retirement allowances separately from the heir(s) in the case of a worker's death, that recipient)and general creditors are not included.
When the rules of retirement allowances or other documents specify the payment date, an employer may
pay retirement allowances as specified in those rules.

2. Certificate upon Separation from Employment, etc.
If a worker requests, upon separation from employment, a certificate regarding the period of employment,
the type of occupation, the position in the business, wages, and the reason for separation from employment (inthe case of dismissal, including the reason for dismissal), an employer is required to issue such a certificate to
the worker without delay (Article 22, paragraph (1) of the Labor Standards Act; See the model form on
p.[157]).
An employer must not state any matters not requested by a worker or secret marks in this certificate.

3. Payment of Travel Expenses for Returning Home
When the working conditions clearly indicated upon concluding a labor contract differ from actual fact anda worker who has changed his/her residence for the purpose of work returns home within 14 days from thedate of contract cancellation (Article 15 of the Labor Standards Act), or when a minor was dismissed (excluding
the case of dismissal attributable to a worker as approved by the Director-General of the competent Labour
Standards Inspection Office) and returns home within 14 days from dismissal (Article 64 of the Labor
Standards Act), the employer must bear the necessary travel expenses on behalf of the worker.

4. Preservation of Records
An employer needs to prepare rosters of workers, enter the date and grounds for dismissal or separationfrom employment or the date and causes of death, and preserve them for five years (for three years for the time
being). Additionally, an employer must preserve wage ledgers and other important documents concerning labor
relationships for five years (for three years for the time being) (Article 109 of the Labor Standards Act).

155

MM/DD/YY

Roster of Workers

Type of work

Designing of
information
processing
systems

Address

Employed on

1-1-1,-cho,

MM/DD/YY-City○

Dismissal under the provisions on dismissal in the rules of employment (Article , paragraph: Downsizing, suspension of business or other unavoidable circumstances in the business) as the company needs todownsize its business due to decreased orders as a result of a bankruptcy of a client or for other reasons

MM/DD/YY○

Form No.19 (Re. Article 53)

Name

Date of birth

Date

Grounds(including
the reason for
dismissal in
the case of○○Entered on MM/DD/YY
Assigned to the Designing Division,
Plant
Withdrawn from the company on MM/DD/YY

156

Gender

Separation

or

Death
dismissal)

Career

○
○

○

○
○

○

157

Rules of Employment
I. Significance and Effects of Rules of Employment
If workers behave selfishly during working hours or take leave without permission, the workplace becomes
disorganized and smooth operation of business is hindered.
On the contrary, if it is not clear for workers when they can take days off or in what occasion disciplinary
actions are imposed, they cannot work with peace of mind.
Therefore, by establishing disciplinary rules and clarifying working conditions in advance, an employer candevelop an environment wherein workers can work without worries and can also ensure smooth business
operation.
Rules of employment are to be drawn up to specify disciplinary rules and working conditions for achieving
these goals.
Rules of employment are beneficial on the part of an employer in that[i] they help maintain workplace order and achieve business operation integrating a number of workers,[ii] they make it possible to handle workers' working conditions uniformly and stabilize working conditions
and business management, and[iii] they prevent disputes caused by uncertainty in rights and obligations of labor and management.
On the other hand, rules of employment are also beneficial on the part of workers in that[i]they clarify working conditions in the workplace and enable workers to work without worries,[ii] they clarify rules to be observed in the workplace, and[iii] they clarify grounds for disciplinary actions and free workers from risks of receiving arbitrary
punishments.

II. Obligation to Draw up Rules of Employment
An employer who regularly employs 10 or more workers is required to draw up rules of employment andsubmit those rules of employment to the Director-General of the competent Labour Standards Inspection Office
together with a statement of opinions of a representative of the workers (Article 89 of the Labor Standards Act)
When an employer alters the content of established rules of employment, the employer also needs to submit
the altered rules of employment to the Director-General of the competent Labour Standards Inspection Office
together with a statement of opinions of a representative of the workers.
An employer who regularly employs less than 10 workers should also preferably draw up rules of
employment.
Workers include not only full-time workers but also part-time workers and fixed-term workers. If thenumber of regularly employed workers, including part-time workers and fixed-term workers, exceeds 10, an
employer is obliged to draw up rules of employment that are applied to all its employees. When it would bebetter to draw up rules of employment separately for part-time workers and fixed-term workers in considerationof their working status, an employer may draw up rules of employment for ordinary workers and for part-timeworkers and fixed-term workers, respectively. In such case as well, those rules of employment drawn up
separately must be submitted to the Director-General of the competent Labour Standards Inspection Office.

158

III. Matters to be Decided in Rules of Employment
Regarding rules of employment, matters that must be stated without fail ([i] indispensable information) andmatters required if certain provisions are made ([ii] relatively necessary information) are specified (Article 89of the Labor Standards Act). Rules may be draw up separately for each matter.
Concrete matters are explained below.

1. Indispensable Information
Matters that must be stated without fail are as follows.
[i]
Matters pertaining to starting and finishing times, rest periods, days off, leave, and shifts in cases
in which workers work in two or more shifts (including child care leave and family care leave under
the Child Care and Family Care Leave Act)
[ii]
Matters pertaining to methods of determining, calculating and paying wages (excluding special
wages), dates for closing accounts for wages and increases in wages[iii] Matters pertaining to retirement (including grounds for dismissal)

2. Matters Required if Certain Provisions are Made
Matters that must be stated if certain provisions are made are as follows.
[i]
If provisions for retirement allowances are made, matters pertaining to the scope of workers
covered, methods of determining, calculating and paying retirement allowances and the dates forpayment of retirement allowances[ii]
If provisions for special wages (excluding retirement allowances) and minimum wages are made,matters pertaining thereto[iii]
If provisions for meal expenses, work supply expenses and other expenses to be borne by workers
are made, matters pertaining thereto[iv]
If provisions for safety and health are made, matters pertaining thereto[v]
If provisions for vocational training are made, matters pertaining thereto[vi]
If provisions for accident compensation and support for off -the-job injuries and diseases are made,matters pertaining thereto[vii] If provisions for commendation and sanctions are made, matters pertaining to their kind and degree[viii] If other provisions that apply to all the workers of the workplace are made, information concerning
the provisions

3. Relationship with Laws and Regulations and Collective Agreements
Rules of employment that infringe any laws and regulations or any collective agreement applicable to theworkplace concerned are invalid (Article 92 of the Labor Standards Act).
If rules of employment infringe laws and regulations or collective agreements, the Director-General of thecompetent Labour Standards Inspection Office may order the alteration thereof.
When an employee has disseminated the rules of employment that contain reasonable working conditions,the conditions of a labor contract are governed by those working conditions contained in those rules of
employment (Article 7 of the Labor Contracts Act). If, however, a labor contract contains the working
conditions that do not meet the standards set forth in the rules of employment, those working conditions of thelabor contract will no longer be effective and will be governed by the standards set forth in the rules of
employment (Article 12 of the Labor Standards Act). For the avoidance of doubt, in order to disseminate therules of employment, an employer is required to ensure that workers can easily check the rules of employment,
when necessary, by showing them the places where the rules of employment are kept or otherwise.

159

IV. Hearing of the Opinions from a Representative of Workers
Rules of employment are drawn up by an employer for the purpose of clarifying working conditions andestablishing discipline in the workplace. The authority to draw up or alter rules of employment is vested in
employers.
However, the Labor Standards Act requires an employer to ask opinions of a representative of the workers
when drawing up or altering rules of employment so that workers can have opportunities to be involved inthose processes (Article 90 of the Labor Standards Act).
A representative of the workers here means a person who represents:[i] a labor union organized by the majority of the workers, or[ii] the majority of the workers if the workplace has no labor union or a labor union is not organized by
the majority of the workers.
A person representing the majority of the workers mentioned in [ii] above must satisfy the following
requirements (Article 6-2 of the Regulation for Enforcement of the Labor Standards Act).
• The person is not in positions of supervision or management (such person as prescribed in Article 41,
item (ii) of the Labor Standards Act).
• The person has been selected through voting or a show of hands, etc. for the purpose clarified in advance,i.e., the selection of a person from whom the opinions are heard upon drawing up or altering rules of
employment, and has not been selected based on the employer's intention.
Incidentally, when drawing up or altering rules of employment applicable to part-time workers, an employer
is required to make efforts to hear the opinions of a person representing the majority of the part-time workers,
and when drawing up or altering rules of employment applicable to fixed-term workers, an employer is required
to make efforts to hear the opinions of a person representing the majority of the fixed-term workers (Article 7of the Part-Time and Fixed-Term Workers Act).
An employer is not legally bound by collected opinions but should respect them as working conditions
should principally be decided on an equal standing of labor and management.

V. Dissemination of Rules of Employment among Workers
Rules of employment must be made known to workers by any of the following methods (Article 106 of theLabor Standards Act and Article 52-2 of the Regulation for Enforcement of the Labor Standards Act).
[i]

Posting or keeping the rules of employment in an easily visible location at each workplace at all times[ii]

Delivering the rules of employment to workers[iii] Recording the rules of employment on magnetic tapes, magnetic disks, cloud services or other similar
forms of media and install a device in each workplace to enable workers to have access to them at all
times

VI. Alteration of Rules of Employment

160

Undertaking procedures for drawing up or altering rules of employment is the obligation of employers ("II.
Obligation to Draw up Rules of Employment").
As prescribed in Articles 89 and 90 of the Labor Standards Act, an employer should hear the opinions of theworkers (a majority union or a representative of the majority of the workers) when altering rules of employment
and should make alterations based on his/her own responsibility.
Rules of employment are often altered when working conditions are changed, and in the case of working
conditions change disadvantageous to workers, in particular, the validity of the alteration is apt to be disputed.
Regarding this point, see "Chapter 3: Labor Contracts."

161

Notification of (Changes to) Rules of Employment

Statement of Opinions

Date

Date
Director-General _____ Labour Standards Inspection Office

Mr./Ms.
As we have established/changed our rules of employment as described in theattachment, we hereby submit the rules of employment to you with a statement of
opinions.

This statement sets out our opinions about the proposed rules of employment,such opinions having been requested on

Major Changes
ArticleLabor Insurance
Number

Before Revision

Prefecture

Competent
body

Jurisdiction

After Revision

Branch No.

Collective business
No.

Company as a whole
WorkplacepeoplepeopleBase No.

Name of Workplace

Address
Name of Employer
Type ofBusiness/Number ofWorkers
If you have changed the company name, also
enter the former name. If you have changed
the address, also enter the former address.

162

Name of the labor union or the representative of a Title
majority of all the workers
Name
Procedures to elect the representative of a majorityof all the workers

Part-Time and Fixed-Term Workers
I. Responsibility of Employers under the Part-Time and Fixed-Term
Workers Act
The Part-Time and Fixed-Term Workers Act requires an employer to make efforts as his/her responsibility
to ensure the treatment of part-time and fixed-term workers he/she employs that is balanced with the treatmentof ordinary workers he/she employs, as well as to take other measures to enable those part-time and fixed-term
workers to effectively exercise their abilities, in consideration of their employment situations etc., by means oftaking such measures as [i] ensuring proper working conditions, [ii] providing them with education and training,[iii] enriching a welfare program, [iv] otherwise improving employment management, and [v] promoting theirshift to becoming ordinary workers (Article 3 of the Part-Time and Fixed-Term Workers Act). The Part-Timeand Fixed-Term Workers Act was put into effect on April 1, 2020, and fixed-term workers came to be also
covered by the law. Accordingly, the content of I to XVII of this Chapter also apply to fixed-term workers.
In addition to what are provided for in the Part-Time and Fixed-Term Workers Act, measures that must be
taken by employers for improving employment management for part-time and fixed-term workers are indicatedin the "Guidelines Concerning Measures to be Taken by Employers for Improving Employment Management
for Part-Time and Fixed-Term Workers (Public Notice of the Ministry of Health, Labour and Welfare No.326
of 2007; hereinafter referred to as the "Guidelines Concerning Part-Time and Fixed-Term Workers").
* Ordinary workers refer to workers judged as ordinary workers by the relevant employer as of the time of
the comparison in light of social norms. Specifically, this term means so-called regular workers and full-timeworkers who have concluded a labor contract without a fixed term with an employer (full-time workers
employed without a fixed term).

II. Part-Time and Fixed-Term Workers“Part-time workers” are workers “whose regular weekly working hours are shorter compared with regular
weekly working hours of ordinary workers employed at the same business establishment.” “Fixed-term
workers” are workers who have concluded a fixed-term labor contract with an employer (Article 2 of the PartTime and Fixed-Term Workers Act).
Part-timers, junior employees, temporary workers, contract workers, contracted workers, etc., irrespectiveof their names, all are covered under the Part-Time and Fixed-Term Workers Act if they fit with this definition.

III. Clear Indication of Working Conditions upon Hiring
When hiring workers, an employer needs to clearly indicate wages, working hours and other working
conditions (Article 15 of the Labor Standards Act), and this provision applies to all workers including parttime workers and fixed-term workers. Regarding clarification of working conditions, see "V. Clear Indicationof Working Conditions" in "Chapter 3: Labor Contracts."
In addition to the abovementioned information for ordinary workers, the Part-Time and Fixed-Term
Workers Act requires an employer to clearly indicate the following when hiring part-time or fixed-term
workers (Article 6 of the Part-Time and Fixed-Term Workers Act and Article 2, paragraph (1) of theRegulation for Enforcement of the Part-Time and Fixed-Term Workers Act).
[i] Whether wages are increased or not[ii] Whether retirement allowances are paid or not[iii] Whether bonuses are granted or not163

[iv] Consultation service related to improvement, etc. of employment management of part-time andfixed-term workers
These matters need to be clearly indicated in writing, but if a part-time or fixed-term worker requests, they
may be informed by e-mail or FAX or other methods of sending telecommunications used for transmitting
information by specifying the recipient (meaning the telecommunications prescribed in Article 2, item (i) of
the Telecommunications Business Act (Act No. 86 of 1984); hereinafter referred to as "e-mail, etc.") (limited
to the methods that enable the relevant part-time or fixed-term worker to prepare a document by outputting therecord contained in the relevant e-mail, etc.) (Article 2, paragraph (3) of the Regulation for Enforcement of thePart-Time and Fixed-Term Workers Act).

IV. Rules of Employment for Part-Time and Fixed-Term Workers
An employer who regularly employs 10 or more workers is required to draw up rules of employment andsubmit those rules of employment to the Director-General of the competent Labour Standards Inspection Office(Article 89 of the Labor Standards Act). When an employer employs part-time or fixed-term workers, rules of
employment must be those also applicable to them. If ordinary rules of employment already established exclude
part-time and fixed-term workers, an employer needs to newly draw up rules of employment applicable to parttime and fixed-term workers.
Article 90 of the Labor Standards Act requires an employer to hear the opinions of a representative of the
majority of the workers in the workplace when drawing up or altering rules of employment, while Article 7 of
the Part-Time and Fixed-Term Workers Act requires an employer to make efforts to hear the opinions of arepresentative of the majority of the part-time workers in the workplace when drawing up or altering rules of
employment regarding matters concerning part-time workers, and also to make efforts to hear the opinions ofa representative of the majority of the fixed-term workers in the workplace when drawing up or altering rulesof employment regarding matters concerning fixed-term workers (Article 7 of the Part-Time and Fixed-Term
Workers Act).

V. Working Hours, Days Off and Rest Periods
Part-time and fixed-term workers often have constraints due to family life and prioritize shorter working
hours, fewer working days or freedom to choose working days or hours depending on their personal
circumstances.
Therefore, the Guidelines Concerning Part-Time and Fixed-Term Workers recommend employers to givedue consideration to circumstances of individual part-time and fixed-term workers when deciding or changing
their working hours or working days and make efforts not to have them work in excess of regular working
hours or on days other than their regular working days.
Provisions concerning working hours, days off, premium wages for overtime work and work on days off,and rest periods, etc. naturally apply to part-time and fixed-term workers as in the case of ordinary workers.

164VI. Annual Paid Leave for Part-Time and Fixed-Term Workers
An employer must grant annual paid leave of the prescribed number of days to all workers. Also, withregard to part-time and fixed-term workers, an employer must grant annual paid leave in accordance with thenumber of their regular working days (Article 39 of the Labor Standards Act). (Article 39 of the Labor
Standards Act; "III. Annual Paid Leave" of "Chapter 5: Rest Periods, Days Off and Leave, etc.").
There are often cases where non-regular workers are not given annual paid leave, but it should be noted that
non-regular workers also have rights to get annual paid leave.
Additionally, part-time and fixed-term workers working for a fixed term also come to obtain rights to getannual paid leave if they work continuously for six months or longer by repeating or renewing their contracts.

VII.

Labor Contract Term
In principle, labor contracts must not be concluded for a period exceeding three years (or for a period

exceeding five years in the case of a contract with a worker aged 60 years or older) ("III. Term of Labor
Contracts" in "Chapter 3: Labor Contracts"). A part-time worker employed by fixing a certain term is subject
to the regulations on fixed-term labor contracts as a contract with a fixed term (a fixed-term labor contract).
With regard to a fixed-term labor contract, an employer must give consideration to not renewing such labor
contract repeatedly as a result of prescribing a term that is shorter than necessary in light of the purpose of
employing the worker based on such labor contract (Article 17, paragraph (2) of the Labor Contracts Act).

VIII. Prohibition of Unreasonable Treatment
An employer must not set a difference in basic wages, bonuses and other treatment between ordinary
workers and part-time and fixed-term workers he/she employs that is found unreasonable in consideration ofsuch matters as the content of the duties and levels of accompanying responsibility (hereinafter referred to as"job descriptions") of all workers, the scope of changes in job descriptions and job assignment, and othercircumstances that are considered appropriate to take into account in light of the nature and the purpose of therelevant treatment (Article 8 of the Part-Time and Fixed-Term Workers Act).
Any difference in treatment in violation of Article 8 of the Part-Time and Fixed-Term Workers Act is illegal
and compensation for damage may be sought.
The Guidelines have been established to present the basic idea and concrete examples concerning what
difference in treatment is unreasonable and what difference is not (referred to as the "Guidelines Concerning
Unreasonable Treatment" in X. below).

165

IX. Prohibition of Discriminatory Treatment
With regard to part-time and fixed-term workers whose job descriptions and scope of changes in job
descriptions and job assignment (personnel utilization system and operation thereof, etc.) are the same as thoseof ordinary workers, Article 9 of the Part-Time and Fixed-Term Workers Act prohibits any discriminatory
treatment in terms of basic wages, bonuses, etc. by reason of being part-time or fixed-term workers.

X. Method of Deciding Wages
With regard to part-time and fixed-term workers covered by the provisions prohibiting discriminatory
treatment, an employer is required to take such measures as applying the same wage scale as ordinary workers
or unifying standards for payroll and personnel evaluation criteria.
For other part-time and fixed-term workers, an employer should make efforts to decide job duty-related
wages (basic wages, bonuses and executive allowances) in consideration of their job descriptions, performance,
motivation, ability, experience and other matters concerning the actual status of their work, while taking into
account a balance with ordinary workers (Article 10 of the Part-Time and Fixed-Term Workers Act).
* Wages should be decided at each business office depending on individuals' job descriptions andresponsibilities or in accordance with respective circumstances by developing appropriate promotion systems
or personnel evaluation systems, instead of based on employers' subjective views or in a single uniform way(such as introducing a uniform hourly wage).
* This Article does not apply to payable wages, such as commutation allowances, family allowances, housing
allowances, separation allowances, child education allowances, or other allowances, irrespective of their names.
Regarding such allowances paid closely related to the content of the duties (such as commutation allowances
substantially paid as part of the basic wage at the same amount irrespective of distance or actual expenses), an
employer needs to make efforts to decide the amounts in consideration of job descriptions, performance,
motivation, ability, experience, etc. of part-time and fixed-term workers, while taking into account a balancewith ordinary workers.

XI. Education and Training, and Welfare Facilities
Regarding part-time and fixed-term workers equivalent to ordinary workers, discriminatory treatment incomparison to ordinary workers is prohibited in terms of all treatment. For part-time and fixed-term workers
who perform the same duties as ordinary workers, an employer is required to provide them with education andtraining in the same manner as ordinary workers to have them acquire knowledge and skills necessary for
performing those duties, except for a case where part-time and fixed-term workers already have the required
abilities (Article 11, paragraph (1) of the Part-Time and Fixed-Term Workers Act). For other part-time andfixed-term workers, an employer is required to make efforts to provide them with education and training inaccordance with their job descriptions, performance, motivation, ability, experience and other matters

166

concerning the actual status of their work, while taking into account a balance with ordinary workers (Article
11, paragraph (2) of the Part-Time and Fixed-Term Workers Act).
With regard to a welfare program, an employer is required to also provide part-time and fixed-term workers
with chances to use welfare facilities (a company cafeteria, resting rooms and locker rooms) in the same manneras ordinary workers (Article 12 of the Part-Time and Fixed-Term Workers Act). In a case where a company
cafeteria is too small to be used by all workers, for example, an employer is not required to ensure theavailability to all workers by such means as building an extension. However, an employer is required to apply
the same rules on use to all workers, extend service hours or otherwise endeavor to ensure that all part-timeand fixed-term workers can also use the company cafeteria.

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When applying provisions of the Part-Time and Fixed-Term Workers Act, the key is to make a proper
judgment concerning whether job descriptions and the scope of changes in job descriptions and job assignment(personnel utilization system and operation thereof, etc.) are the same between ordinary workers and part-timeand fixed-term workers. Refer to the following figures for the judgment.
Whether job descriptions are the sameJob descriptions refer to the content of the duties and the level of accompanying responsibilities. A judgment should be made by the following
procedures.
1.

Same

Compare job types

Differente.g., Marketing, Sales, Clerical post

2.

Different

Same

Compare core duties
Comparison of duties
Customer service, Casher, Display, Cleaning

Full-time

Customer service, Casher, Display, Claim management, Ordering

Job descriptions are different.

Part-time☆ Circle core duties (What falls under core duties may differ
by workplace even in the same job type.)Core duties refer to representative duties among those accompanying a job assigned to a worker. Core duties should be duties
indispensable for the assigned job, duties whose outcome has significant impact on the performance and evaluation of theworkplace, or duties accounting for a large portion in the worker's job as a whole. Comprehensively referring to such criteria,
core duties should be determined.

3. Compare the level of responsibility

Not largely different

The level of responsibility should be determined by comprehensively
taking into account the scope of granted authority, roles required for theoutcome of duties, required responses in the event of trouble or in
emergencies, assigned quota and expected performance

Different

Job descriptions are
the same.

Whether the application and operation of the personnel utilization system are the same
Whether the application and operation of the personnel utilization system are same or not should be judged by the following procedures.
Both, nopossibility

Compare possibilityof job transfer

2.

Compare the scope of job transfer

3.

Compare possibility of change in duties and assignments

4.

Compare the scope of change in duties and assignments

Both, possible

Only either, possible

Substantially the sameBothpossible

Different

Both, nopossibility

Substantially thesameSame personnel
utilization system

168

Only either,possible

Different

Different personnel utilization
systems are applied.

1.

XII.

Explanations of the Details of the Measures Taken by an Employer

When hiring a part-time or fixed-term worker, an employer must immediately provide the worker with
explanations on the details of the measures concerning the employment management improvement he/she takes(Article 14, paragraph (1) of the Part-Time and Fixed-Term Workers Act).
[Examples of explanations upon hiring]• Details of the wage system• Details of the education and training• Availability of welfare facilities• Whether measures to promote a shift to becoming regular workers are taken, etc.
When a part-time or fixed term worker requests explanations, an employer must explain the details of thedifference in treatment compared with ordinary workers that he/she considers the closest to the relevant worker
in terms of job descriptions, etc. and the reason therefor, etc. (Article 14, paragraph (2) of the Part-Time andFixed-Term Workers Act).
[Examples of explanations when requested]• Whether there is any difference between ordinary workers for comparison and part-time and fixed-term
workers in the criteria for deciding treatment, what difference if any, and why there is such difference• What was taken into consideration when providing education and training or permitting the use of welfare
facilities for part-time and fixed-term workers• What was taken into consideration when deciding measures to promote a shift to becoming regular workers,
etc.
These explanations should be basically provided orally while using reference materials (Guidelines
Concerning Part-Time and Fixed-Term Workers).
Article 14, paragraph (3) of the Part-Time and Fixed-Term Workers Act prohibits employers from dismissing
or discriminately treating a part-time or fixed-term worker by reason of his/her request for explanations.

XIII. Medical Examinations
An employer needs to conduct medical examinations (upon hiring and regular examinations) also for parttime and fixed-term workers who fall under regularly employed workers (Article 66 of the Industry Safety and
Health Act).
Regularly employed part-time workers here refer to workers who satisfy both of (1) and (2) below.
(1) The person is employed under a labor contract without a fixed term (including a person employed undera labor contract with a fixed term who is scheduled to be employed for one year or longer (or for six
months or longer in the case of a part-time worker engaging in the specified services set forth in Article
13, paragraph (1), item (iii) of the Regulation for Enforcement of the Industry Safety and Health Act as
cited in Article 45, paragraph (1) of the same Regulation; the same applies in (2) below) through therenewal of the relevant contract and a person who has been continuously employed for one year or longer
as a result of the renewal of the relevant contract).
(2) The person's weekly working hours are not shorter than three-quarters of the weekly working hours ofordinary workers engaging in the same type of duties in the relevant workplace.

XIV. Development of Consultation System169

An employer must develop a consultation system (a system of a consultation office, etc. to accept
consultations including complaints) in order to accept and properly respond to consultations from part-timeand fixed-term workers he/she employs (Article 16 of the Part-Time and Fixed-Term Workers Act).
An employer should preferably make efforts to provide information on a consultation office or other system
to part-time and fixed-term workers by clearly indicating it in documents to be delivered upon hiring (see "III.
Clear Indication of Working Conditions upon Hiring" of this Chapter) or posting it in an easily visible locationin the workplace.

XV. Part-Time and Fixed-Term Employment Managers
The Part-Time and Fixed-Term Workers Act provides that an employer must endeavor to appoint a part-timeand fixed-term employment manager for each place of business where the number of part-time and fixed-term
workers regularly employed is not less ten (Article 17 of the Part-Time and Fixed-Term Workers Act andArticle 6 of the Regulation for Enforcement of the Part-Time and Fixed-Term Workers Act).
A part-time and fixed-term employment manager is to manage the matters for securing proper working conditions
and improving employment management for part-time and fixed-term workers, and should be appointed fromamong persons who are found to have knowledge and experience necessary for the improvement of employment
management for part-time and fixed-term workers, such as the matters specified in the Guidelines (Article 7 of theRegulation for Enforcement of the Part-Time and Fixed-Term Workers Act).

XVI. Shift to Becoming Ordinary Workers
An employer who employs part-time or fixed-term workers must take measures to promote their shift tobecoming ordinary workers (Article 13 of the Part-Time and Fixed-Term Workers Act).
Specifically, required measures are the following.
(1) When newly recruiting ordinary workers, make that job-opening information known to part-time andfixed-term workers he/she already employs(2) When offering posts of ordinary workers within the company, also provide part-time and fixed-term
workers with chances to apply for the posts(3) Introduce an examination system or other system to promote shift of part-time and fixed-term workers to
becoming ordinary workers(4) Take other measures to promote their shift to becoming ordinary workers
As not a few part-time and fixed-term workers do not want to become ordinary workers at different
workplaces, shift to becoming ordinary workers means employment as ordinary workers at the workplaces
where they are currently employed (Article 3, paragraph (1) of the Part-Time and Fixed-Term Workers Act).

XVII. Mechanism to Settle Complaints and Disputes
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When receiving any complaint from a part-time or fixed-term worker, an employer must endeavor to achievea voluntary resolution within the workplace (Article 22 of the Part-Time and Fixed-Term Workers Act).
In general, an employer seeks resolution within the workplace by utilizing an in-house complaint handlingsystem or having a personnel official or a part-time and fixed-term employment manager handle the case.
As public assistance in resolution of disputes between part-time and fixed-term workers and employers, thefollowing are available.
[i] Advice, guidance or recommendation by the Director of the Prefectural Labour Bureau (Article 24 of thePart-Time and Fixed-Term Workers Act)[ii] Conciliation by the Conciliation Committee on Equal Treatment established in the Prefectural Labour
Bureau (Article 25 of the Part-Time and Fixed-Term Workers Act)

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Dispatched Workers
I. Worker Dispatching
Under the Worker Dispatching Act, worker dispatching is defined as "causing a worker employed by one
person so as to be engaged in work for another person under the instruction of the latter, while maintaining his/her
employment relationship with the former, but excluding cases where the former agrees with the latter that such
worker shall be employed by the latter" (Article 2, item (i) of the Worker Dispatching Act).
In other words, worker dispatching must satisfy the following requirements: [i] dispatching a worker that aperson employs [ii] to some other person's workplace, [iii] while maintaining that employment relationship, and[iv] having the worker engage in work for that other person [v] under that person's instruction, but [vi] not havingsuch worker engage in work under an agreement to let that other person employ the relevant worker.

Worker dispatching
Dispatching company

Worker dispatch
contract

Wages

ClientWork

Employment
relationship/Labor
contract

Relationship ofgiving and receiving
instructions

Worker・The dispatching company is the employer.
・The client gives instructions to the worker.

II. Worker Dispatching Undertakings
1. Worker Dispatching Undertakings
Worker dispatching undertaking means carrying out worker dispatching in the course of trade (Article 2,
item (iii) of the Worker Dispatching Act). Businesses that fit with this definition are all covered by the Worker
Dispatching Act.
Any person who intends to carry out a worker dispatching undertaking must file an application to obtain alicense from the Minister of Health, Labour and Welfare (Article 5, paragraph (1) of the Worker Dispatching
Act).
Clients may not receive workers dispatched by a dispatching company without a license.
The amendment of the Worker Dispatching Act in 2015 abolished the classification of specified worker
dispatching undertakings (undertakings to dispatch only regularly employed workers (notification required))and general worker dispatching undertakings (worker dispatching undertakings other than specified worker
dispatching undertakings (license required)), and all business establishments carrying out a worker dispatchingundertaking have come to be required to obtain a license from the Minister of Health, Labour and Welfare.

172

2. Services for which Worker Dispatching is not Allowed
No person is allowed to carry out a worker dispatching undertaking with regard to the following services(Article 4, paragraph (1) of the Worker Dispatching Act and Article 2 of the Worker Dispatching Order).
[i]Port transport services[ii]

Construction work[iii]

Security services[iv]

Medical services at hospitals, etc. (*)* Excluding cases of employment placement dispatching
Dispatching companies must not dispatch workers for the abovementioned services ([i] to [iv]) and persons
who receive the provision of worker dispatching services must not have dispatched workers engage in these
services (Article 4, paragraph (3) of the Worker Dispatching Act). Therefore, when a company intends to haveworkers employed by another company engage in these services, a form of consignment or contract for workneeds to be employed.
Additionally, worker dispatching undertakings are not allowed for the following services.
○ Worker dispatching undertakings are not allowed based on the purport of respective laws andregulations stipulating the following services.
[i] Services of a lawyer, registered foreign lawyer, judicial scrivener, and land and house investigator[ii] Services of a certified public accountant, certified tax accountant, patent attorney, public consultant
on social and labor insurance, and certified administrative procedures specialist (excluding some of
their services)[iii]Services of a managing architect at a registered architect's office○ Within the personnel and labor management-related services, for services conducted at clientcompanies as a direct party on the employer's side in collective bargaining or labor-management
negotiations for concluding an agreement prescribed in the Labor Standards Act, worker dispatchingundertakings are not allowed in light of the purport of Article 25 of the Worker Dispatching Act.
○ Workers must not be newly dispatched to business offices where a strike or lockout is underway or
where a labor dispute action is taking place and a strike or lockout is highly likely to occur (Article 24of the Worker Dispatching Act and Article 20 of the Employment Security Act).
○ It is not permitted to dispatch workers with the intention of inducing them to engage in work injurious
to public health or public morals (Article 58 of the Worker Dispatching Act).

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III. Points to Note When Accepting Dispatched Workers
1. Legal Relationship of Dispatched Worker, Dispatching Company and Client(Triangular Legal Relationship)
The triangular legal relationship among a dispatched worker, a dispatching company and a client under theWorker Dispatching Act is as follows.

(1) Relationship between the dispatched worker and the dispatching company
The dispatched worker is employed by the dispatching company under a labor contract concluded therewith
and engages in work in a workplace of the client under instructions from the client.

(2) Relationship between the dispatching company and the client
Under a worker dispatch contract concluded with the client, the dispatching company dispatches the worker
it employs to the client's workplace to have him/her work there, while delegating its rights to give instructions
to the worker to the client within the scope necessary for his/her performance of work at the client's workplace.

(3) Relationship between the client and the dispatched worker
The dispatched worker works for the client under instructions from the client.

(4) Regulations upon concluding a worker dispatch contract
In worker dispatching, a dispatched worker works under unconventional circumstances wherein a person
who employs the worker (a dispatching company) and a person who gives instructions to the worker (a client)are different. Therefore, it is necessary to clarify conditions among the dispatched worker, dispatchingcompany and client concerned for the purpose of preventing trouble and ensuring proper employment
management. The Worker Dispatching Act provides for the following measures to be taken by a dispatchingcompany and a client upon concluding a worker dispatch contract[i] The parties to the worker dispatch contract should decide working conditions of a dispatched worker
during the dispatching period in the contract (Article 26, paragraph (1) of the Worker Dispatching Act).
[ii] The parties should make an agreement concerning cases of cancellation of the worker dispatch contract
on any grounds attributable to the client, such as the client's obligation to secure another job opportunity
for the worker and bear expenses required for the payment of allowance for absence from work (Article
26, paragraph (1) and Article 29-2 of the Worker Dispatching Act).
[iii]The parties should clearly indicate working conditions, etc. specified in the worker dispatch contract tothe relevant dispatched worker (Article 34 of the Worker Dispatching Act).
[iv] The dispatching company should provide the client with necessary information concerning the
dispatched worker, including his/her name, etc. (Article 35 of the Worker Dispatching Act).

174

2. Points to Note When Accepting Dispatched Workers
Points to note on the side of a client accepting dispatched workers are explained below.
It should be noted that if a client commits any violation regarding these points, advice, guidance orrecommendation may be given by the Director of the Prefectural Labour Bureau, and when a client has failed tofollow such recommendation, that fact may be publicized.

< Flow of worker dispatching procedures and major points >The following are major points to be noted in particular by a client when accepting a dispatched worker.
Flow of worker dispatching procedures
Worker

Dispatching company

ClientProper business operation
Restrictions on the dispatching period
Check
Registration (Case of registereddispatching)

Request for
dispatching

Understand the restrictions on the dispatching period per workplace and per worker
Understand the system of deemed application for labor contract

Notification of the date of
infringing the restrictions

Conclusion of a worker
dispatch contract
Upon conclusion of a worker dispatch contract
Coordination

Check
Have not conducted a preliminary interview of the dispatched worker

Agreement

Not for services for which worker dispatching is prohibited
Have decided all matters that should be specified in the contract

Explanation oftreatment

Clear indication of working
conditions, wages, etc.

Notification to the client

Start of the dispatch work

Restrictions on the dispatching period

Conclusion of a labor contract

Upon start of the dispatch work
Check

Employment management

Have not accepted a person who resigned from the company within 1 year

Have confirmed that the worker has taken out social and labor insurance
Work management

Have appointed a responsible person acting for the client and prepared a management record

Liaison and adjustments(secure proper dispatch
work)

Understand the obligation to consider equal treatment between the dispatched worker and own
employees

End of the dispatch work

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(1) Restrictions on the dispatching period (Article 40-2, paragraphs (1) to (5) and Article 40-3 of the Worker
Dispatching Act)
There are restrictions on the period for worker dispatching per workplace and per worker.
Three years is the maximum number of years for dispatching a worker to the same workplace of a client,in principle.
When a client intends to continue accepting a worker over three years, the client needs to hear the opinionsof its majority union or the equivalent.**

When a client does not have a majority union, a person representing the majority of the workers

in the workplace
Hearing the opinions ofa majority union, etc.

Start accepting
a worker○○branch3 years

3 years

The maximum number of years for dispatching a worker to the same organization (such as the samedivision) in a client's workplace is three years.
3 years

Hearing the opinions of a majority union, etc.

Office 2,
Personnel
DivisionStart accepting a worker

Office 1,
Personnel
Division

Finance
Division

3 years

Dispatch the same
worker to the samedivision over 3 years: ×

Dispatch another worker
to the same division: ○Dispatch the same worker
to a different division: ○* The following persons and services are excluded from the restrictions on the dispatching period.
• A dispatched worker employed by a dispatching company without a fixed term
• A dispatched worker aged 60 years or older• Services for a fixed-term project (services for starting, changing, expanding, downsizing or abolishinga business that are completed within a certain period of time)• Services for limited number of days (the number of days required for the services per month is very low
in comparison with ordinary workers and is 10 days or less per month)• Services of a worker who takes maternity leave before and after childbirth, child care leave, family careleave, etc.
* Procedures for hearing opinions
When a client intends to extend a dispatching period beyond the limit of three years per workplace, theclient needs to hear the opinions of its majority union or the equivalent* after explaining the workplacethat will accept dispatched workers and the dispatching period to be extended.
* When a client does not have a majority union, a person representing the majority of the workers in theworkplace• Opinions need to be heard by one month prior to the date of infringing the restrictions on the dispatching
period.
• When there are objections from a majority union, etc., the client must explain the policies to be taken.

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< Complement > Restrictions on dispatching of day laborers and worker dispatching to group companies• In principle, it is prohibited to dispatch a worker under a labor contract concluded with a dispatchingcompany for a fixed term of 30 days or shorter.
* A worker engaging in software development or other services specified by Cabinet Order, a worker aged
60 years or older, a student worker, a worker doing side work, and a worker who is not the major livelihood
earner are excluded.
• Workers dispatching to group companies need to be 80% or less of the overall worker dispatchingundertaking of a dispatching company.

(2) Upon conclusion of a worker dispatch contract
The following should be noted when concluding a worker dispatch contract with a dispatching company.
[i] Prohibition of a preliminary interview• Except for cases of employment placement dispatching, it is prohibited, in principle, for a client todesignate a worker to be dispatched, conduct a preliminary interview, or request that a resume be sent,
etc. (Article 26, paragraph (6) of the Worker Dispatching Act).
[ii] Need to conclude a proper worker dispatch contract• Worker dispatching is prohibited for port transport services, construction work, security services,
medical services at hospitals, etc. (cases of employment placement dispatching are exceptions). It is
not permitted to have a dispatched worker engage in these services (Article 4, paragraph (3) of theWorker Dispatching Act).
• Before concluding a worker dispatch contract, a client needs to inform a dispatching company of thedate on which the restrictions on the dispatching period per workplace come to be infringed (Article
26, paragraph (4) of the Worker Dispatching Act).
• It is necessary for the parties to make an agreement in a worker dispatch contract concerning the detailsof the services as well as the measures necessary for ensuring stable employment of a dispatched worker
in cases of midterm cancellation of the contract on any grounds attributable to the client (such mattersas securing of another job opportunity for the worker and bearing of expenses required for the paymentof allowance for absence from work) (Article 26, paragraph (1), item (viii) of the Worker DispatchingAct).
• Before concluding a worker dispatch contract, a client needs to provide a dispatching company withrequired information such as wages of workers for comparison (Article 26, paragraph (7) of theWorker Dispatching Act).

(3) Upon start of the dispatch work[i]

Prohibition of acceptance of a worker who resigned from the company within one year
A client cannot accept a worker who it directly employed in the past (as an employee or a part-timer,etc.; excluding a retired worker aged 60 years or older) as a dispatched worker via a dispatching company
within one year after his/her separation from employment. (Article 40-9 of the Worker Dispatching Act)[ii] Application of social and labor insurance
A client needs to confirm that a dispatched worker it intends to accept has appropriately taken out social
and labor insurance.
[iii] Handling of complaints from a dispatched worker
A client must put in place a system to handle complaints from a dispatched worker (Article 40,
paragraph (1) of the Worker Dispatching Act).
[iv] Appointment of a responsible person acting for the client and preparation of a management record177

A client must appoint a responsible person acting for the client and prepare a management record foreach workplace accepting a dispatched worker (Articles 41 and 42 of the Worker Dispatching Act).
[v] Provision of job-opening information
When a client recruits full-time workers for the workplace, the client must provide that job-opening
information also to any dispatched worker having been accepted in the workplace continuously for one
year or longer (Article 40-5, paragraph (1) of the Worker Dispatching Act).
When a client receives a request from a dispatching company to directly employ a dispatched worker
who is expected to be accepted for services at the client's same organization continuously for three years,
as a measure to ensure the worker's stable employment, and the client is intending to newly recruit aworker (not limited to a regular worker) for that workplace, the client must provide that job-opening
information also to the relevant dispatched worker (Article 40-5, paragraph (2) of the Worker DispatchingAct).
[vi] Measures that a client is required to take for the purpose of eliminating unreasonable differences intreatment for dispatched workers
A client needs to take the following measures for the purpose of eliminating unreasonable differencesin treatment for dispatched workers.
○ Give due consideration to the fee for worker dispatching so as to eliminate unreasonabledifferences in treatment by a dispatching company based on the provisions of Article 30-3 orArticle 30-4 of the Worker Dispatching Act (Article 26, paragraph (11) of the Worker DispatchingAct)○ When providing education and training for having its employees acquire skills necessary for
performing duties, also provide such education and training to dispatched workers at a requestfrom a dispatching company (Article 40, paragraph (2) of the Worker Dispatching Act)
○ Provide dispatched workers with chances to utilize welfare facilities (a company cafeteria, restingrooms and locker rooms) in the same manner as its employees (Article 40, paragraph (3) of theWorker Dispatching Act)○ Give due consideration and take necessary measures such as allowing dispatched workers to use
facilities that a client established and operates and its employees ordinarily use (a company clinic,
shop and hospital, etc.) (Article 40, paragraph (4) of the Worker Dispatching Act)○ When requested by a dispatching company, give due consideration and offer necessary
cooperation such as providing information on the worker to be employed by a client, the status of
the worker's performance of duties and other necessary information (Article 40, paragraph (5) of
the Worker Dispatching Act).

(4) Midterm cancellation of a worker dispatch contract[i] A client needs to obtain consent of the dispatching company in advance and should ask for cancellationof a worker dispatch contract with a sufficient grace period.
[ii] A client needs to make efforts to secure another job opportunity for the relevant dispatched worker bysuch means as introducing a job in its affiliated company (Article 29-2 of the Worker Dispatching Act).
[iii]When a client cannot secure another job opportunity for the relevant dispatched worker, the client needs
to at least compensate damage sustained by the dispatching company due to the midterm cancellation(Article 29-2 of the Worker Dispatching Act).
[iv] When a client intends to cancel a worker dispatch contract and there is a request from the dispatchingcompany, the client needs to clarify the reason for the cancellation to the dispatching company (2, VI.
(v) of the Guidelines Concerning Measures to be Taken by Clients Accepting Dispatched Workers).

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(5) System of deemed application for labor contract
When a client has accepted a dispatched worker illegally as shown below, it is deemed that the client
filed, at that point in time, an application for a labor contract with the same working conditions as thosespecified by the dispatching company, and the labor contract is established upon agreement of the dispatchedworker (excluding cases where a client did not know that the relevant worker dispatching is illegal and was
not negligent in failing to know that fact) (Article 40-6 of the Worker Dispatching Act).
(Reference) Illegal worker dispatching covered under this system[i] Having a dispatched worker engage in prohibited services[ii] Having accepted a dispatched worker from a company without license[iii]Having accepted a dispatched worker in violation of restrictions on dispatching period per workplaceor per worker[iv] A case of so-called work contract fraud179

IV. Application of the Labor Standards Act, etc. to Dispatch Work
1. Application of Laws and Regulations to Illegal Worker Dispatching
With regard to the application of the Labor Standards Act and other worker protection laws, the Worker
Dispatching Act maintains the principle that a dispatching company should assume responsibility as a party toa labor contract but establishes special provisions to prescribe that a client also assumes responsibility as an
employer as prescribed by the Labor Standards Act, focusing on the actual status wherein the client gives
instructions to the worker.
These special provisions are for sharing of responsibilities in relation to the Labor Standards Act and otherlaws and regulations in light of the unique employment pattern of worker dispatching and are to be applied not
only to lawful worker dispatching undertakings but also to worker dispatching undertakings carried out
illegally by other companies (limited to cases where their businesses are covered under the Labor StandardsAct), as well as to worker dispatching not on a regular basis. This point should be noted (Article 44, paragraph(1) of the Worker Dispatching Act).
For example, when a subcontractor has concluded a contract for work but the reality is in violation of therequirements in the Classification Criteria between Worker Dispatching Undertaking and Business underContract for Work (Public Notice No. 37), in other words, if the subcontractor only dispatches a worker andthe original contractor has such worker work together with its employees under its instructions, the situation
falls under worker dispatching in violation of the law. In this case, the client is considered to be an employerof the relevant dispatched worker under the Labor Standards Act and the Industrial Safety and Health Act andis subject to the punishments under these Acts (in Article 44 onward of the Worker Dispatching Act, applicable
workers are defined as "workers employed by an employer and dispatched to a client" not as "workers
dispatched from a dispatching company").

2. Application of Special Provisions of the Labor Standards Act, etc.
The Worker Dispatching Act provides for application of special provisions with regard to the Labor
Standards Act, the Industrial Safety and Health Act, the Pneumoconiosis Act, the Working Environment
Measurement Act, the Equal Employment Opportunity Act, the Child Care and Family Care Leave Act, andthe Labor Policies Comprehensive Promotion Act (Articles 44 to 47-4 of the Worker Dispatching Act).
With regard to the application of the Labor Standards Act, etc. to dispatched workers, the Worker
Dispatching Act maintains the principle that the responsibility should basically be assumed by a dispatchingcompany, which has a labor contract relationship with a dispatched worker, but establishes special provisions
to prescribe that a client should assume responsibility for the matters for which the dispatching company cannot
be held liable in light of the actual status of worker dispatching and for the matters for which it is appropriate
to have the client assume responsibility for ensuring effective protection of the dispatched worker.
Concrete sharing of responsibilities is as exemplified below.
[i] With regard to matters concerning specific details of work, such as working hours, rest periods, days off, theframework of working hours and days off is to be made by the dispatching company, while the client, who

180

actually gives instructions based on such framework, assumes the responsibility to comply with theprovisions on working hours, etc. under the Labor Standards Act.
* Application of working hours
The client falls under an employer under the Labor Standards Act with regard to the application of working hours, while
the dispatching company falls under an employer under the Labor Standards Act with regard to a labor-managementagreement on overtime work, work on days off, or on a various working hours system, granting of annual paid leave, andmaternity leave before and after childbirth (regarding time for child care and work during a menstrual period, the client is
responsible).
Therefore, even though a worker dispatch contract provides that a worker can work in excess of eight hours per day or
can work on statutory holidays, if the dispatching company has not concluded and submitted an agreement under Article
36, the client may not order a worker work overtime or on a day off. In other words, when the dispatching company has
specified in a worker dispatch contract such matters as working days and the fact that a worker can work outside the startingor finishing times, but has failed to conclude and submit an agreement under Article 36 containing the same effect anddispatches the relevant worker to the client, this may trigger the client's violation of the Labor Standards Act and such
worker dispatching is prohibited. Eventually, the client can only order overtime work or work on a day off to the dispatchedworker within the scope of an agreement under Article 36 specified by the dispatching company.

[i] With regard to matters concerning industrial safety and health, the client principally assumes the obligation
to take measures concerning the installation and management of facilities and dangerous and injurious workby giving concrete instructions, while the dispatching company assumes the obligation for general medical
examinations and other measures to be continuously taken during the employment term and safety education
to be provided upon hiring.
*1 Note that collaboration between a dispatching company and a client and safety education targeting dispatched workers
are detailed in the following Public Notices.
• "Guidelines Concerning Measures to be Taken by Dispatching Companies" (Public Notice of the Ministry of Labour
No.137 of 1999)•"Guidelines Concerning Measures to be Taken by Clients Accepting Dispatched Workers" (Public Notice of the
Ministry of Labour No.138 of 1999)•"Securing Working Conditions and Industrial Safety and Health for Dispatched Workers" (Kihatsu No.0331010 ofMarch 31, 2009)• Concerning Partial Revision of the Public Notice titled "Securing Working Conditions and Industrial Safety and Healthfor Dispatched Workers" (Kihatsu-0930, No. 5 of September 30, 2015)*2 Application of the Labor Standards Act and other laws and regulations is briefly compiled as follows.

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< Application of the Labor Standards Act, etc. >1. Labor Standards Act
Dispatching company- Equal treatment- Principle of the same wage between men and women- Prohibition of forced labor- Labor contract- Wages- Conclusion and submission of an agreement on a
one-month variable working hours system, flextime
system, or one-year variable working hours system;
Conclusion and submission of an agreement on
overtime work and work on days off; Conclusion andsubmission of an agreement on work outside
workplaces; Conclusion and submission of anagreement on a discretionary work system forprofessional work
- Premium wages for overtime work, work on days off,
and work at night- Annual paid leave- Minimum age- Certificates for minors

Client- Equal treatment- Prohibition of forced labor- Guarantee of the exercise of civil rights- Working hours, rest periods, days off- Working hours and days off (minors)- Work at night (minors)- Limitation on dangerous and injurious work (minors
and expectant or nursing mothers, etc.)- Prohibition of belowground work (minors)- Limitation on belowground work (expectant or
nursing mothers, etc.)- Travel expenses for returning home (minors)- Maternity leave before and after childbirth, transfer
to light activities- Elimination of abuse of apprenticeship- Special provisions regarding vocational training- Accident compensation- Rules of employment- Dormitories- Prohibition of disadvantageous treatment on the
grounds of making a report- Obligation of state assistance- Obligation to disseminate laws and regulations- Roster of workers- Wage ledger- Preservation of records- Obligation to make reports- Overtime work, work on days off, and work at night
before and after childbirth- Time for child care
- Measures for whom work during the menstrual
period would be difficult- Elimination of abuse of apprenticeship- Prohibition of disadvantageous treatment on the
grounds of making a report- Obligation of state assistance- Obligation to disseminate laws and regulations(excluding rules of employment)- Preservation of records- Obligation to make reports

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2. Industrial Safety and Health Act
Dispatching company

Client- Responsibilities of employers to secure industrial
safety and health in workplaces- Responsibilities of workers to offer cooperation tomeasures to prevent industrial accidents taken by
employers, etc.
- Recommendations, etc. by the Minister of Health,Labour and Welfare concerning the implementation of
an industrial accident prevention plan
- Appointment, etc. of a general safety and healthmanager- Responsibilities of employers to secure industrial
safety and health in workplaces- Responsibilities of workers to offer cooperation tomeasures to prevent industrial accidents taken by
employers, etc.
- Recommendations, etc. by the Minister of Health,Labour and Welfare concerning the implementation of
an industrial accident prevention plan
- Appointment, etc. of a general safety and healthmanager- Appointment, etc. of a safety officer- Appointment, etc. of a health officer- Appointment, etc. of a safety and health promoter- Appointment, etc. of an industrial physician- Appointment, etc. of an operations chief- Appointment, etc. of an overall safety and healthcontroller- Appointment, etc. of a principal safety and healthsupervisor- Appointment, etc. of a site safety and healthsupervisor- Safety Committee- Health Committee- Education for safety officers- Measures to prevent dangers and health impairmentof workers- Measures to be taken by employers- Matters to be observed by workers- Surveys, etc. to be conducted by employers- Measures to be taken by principal employers- Measures to be taken by specified principal
employers- Periodical self-inspection- Investigation of toxicity of chemical substances- Safety and health education (upon changing work
content and assigning dangerous and injurious work)- Education for foremen- Education for workers engaging in dangerous andinjurious work
Limitation on work
- Consideration for middle-aged and aged workers- State assistance for safety and health education
provided by employers- Working environment measurement- Evaluation of the working environment measurement
results- Control of work
- Restriction on working hours- Medical examination (medical examination, etc. in
relation to injurious work, hearing of opinions on theexamination results)- Appointment, etc. of a health officer- Appointment, etc. of a safety and health promoter- Appointment, etc. of an industrial physician- Health Committee- Education for safety officers- Safety and health education (upon hiring andchanging work content)- Education for workers engaging in dangerous andinjurious work
- Consideration for middle-aged and aged workers- State assistance for safety and health education
provided by employers- Medical examination (general medical examination,etc., hearing of opinions on the examination results)- Medical examination (measures to change work, etc.
based on the examination results)- Notification of medical examination results- Health guidance by a physician, etc.
- Face-to-face guidance by a physician, etc.

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- Examination, etc. for ascertaining the levels of
psychological burdens (implementation of examination,
notification of examination results, face-to-faceguidance by a physician, hearing of opinions on theexamination results, and change of work, etc.)- Medical examination (measures to change work, etc.
based on the examination results)- Ascertaining of the status of working hours- Health education, etc.
- Providing convenience, etc. for physical exercise- Prohibition of disadvantageous treatment on the
grounds of making a report- Report, etc.
- Dissemination of laws and regulations- Preservation of documents, etc.
- State assistance for the development of safety andhealth facilities by employers- Epidemiological survey, etc.

- Prohibition of employment of the sick
- Prevention of secondhand smoking- Health education, etc.
- Providing convenience, etc. for physical exercise- Measures for creating a comfortable work
environment- Safety and health improvement plan, etc.
- Notification and investigation, etc. of a plan on
installation and relocation of machines, etc.
- Prohibition of disadvantageous treatment on the
grounds of making a report- Order of suspension of use, etc.
- Report, etc.
- Dissemination of laws and regulations- Preservation of documents, etc.
- State assistance for the development of safety andhealth facilities by employers- Epidemiological survey, etc.

3. Pneumoconiosis Act
Dispatching company

Client- Responsibility of the company and workers to takeappropriate measures concerning prevention ofpneumoconiosis- Education
concerning
preventionofpneumoconiosis and health management- Implementation of pneumoconiosis examinations*- Determination of classification for supervision ofpneumoconiosis*- Company's responsibility based on the results of the - Company's responsibility based on the results of thepneumoconiosis examinations
pneumoconiosis examinations- Measures to reduce the level of exposure to - Measures to reduce the level of exposure toparticulatesparticulates- Change of work
- Change of work
- Allowance for change- Education and training for change of work
- Education and training for change of work
- Government's technical assistance, etc.
- Government's technical assistance, etc.
- Dissemination of laws and regulations*- Prohibition of disadvantageous treatment on the - Prohibition of disadvantageous treatment on the
grounds of making a reportgrounds of making a report- Reporting- Reporting(Note)

Provisions marked with * apply to a dispatching company after worker dispatching to aworkplace of dust work finishes.
4. Working Environment Measurement Act

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Dispatching company

Client- Implementation of working environment
measurement by a working environment measurement
expert or a working environment measurement agency

5. Act on Securing, etc. of Equal Opportunity and Treatment between Men and Women in Employment
Dispatching company- Prohibition of dismissal or other disadvantageous
treatment on the grounds of pregnancy and childbirth,etc.
- Measures in terms of employment management
concerning problems caused by sexual language andbehavior in the workplace- Employer's responsibility concerning problems
caused by sexual language and behavior in theworkplace- Measures in terms of employment management
concerning problems caused by language and behavior
in relation to pregnancy and childbirth, etc. in theworkplace- Employer's responsibility concerning problems
caused by language and behavior in relation topregnancy and childbirth, etc. in the workplace- Measures concerning health management during
pregnancy and after childbirth

Client- Prohibition of disadvantageous treatment on the
grounds of pregnancy and childbirth, etc.
- Measures in terms of employment management andin terms of instructions concerning problems caused bysexual language and behavior in the workplace
Employer's responsibility concerning problems
caused by sexual language and behavior in theworkplace- Measures in terms of employment management andin terms of instructions concerning problems caused bylanguage and behavior in relation to pregnancy andchildbirth, etc. in the workplace- Employer's responsibility concerning problems
caused by language and behavior in relation topregnancy and childbirth, etc. in the workplace- Measures concerning health management during
pregnancy and after childbirth

6. Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children
or Other Family Members
Dispatching company- Prohibition of dismissal or other disadvantageous
treatment on the grounds of the use of the systems ofchild care leave, parental leave, family care leave,sick/injured child care leave, nursing leave, limitation
on work in excess of regular working hours, limitation
on overtime work, limitation on night work, measures
to shorten regular working hours, or filing of a
notification concerning the pregnancy, childbirth, etc.
of a worker or a worker's spouse, or failure to reporttheir days available for work, etc. during parental leaveor to give consent thereto, etc.
- Measures in terms of employment management
concerning problems caused by language and behavior
in relation to child care leave, family care leave, etc. in
the workplace- Employer's responsibility concerning problems
caused by language and behavior in relation to childcare leave, family care leave, etc. in the workplace

Client- Prohibition of disadvantageous treatment on the
grounds of the use of the systems of child care leave,parental leave, family care leave, sick/injured child careleave, nursing leave, limitation on work in excess ofregular working hours, limitation on overtime work,
limitation on night work, measures to shorten regular
working hours, or filing of a notification concerning the
pregnancy, childbirth, etc. of a worker or a worker's
spouse, or failure to report their days available forwork, etc. during parental leave or to give consent
thereto, etc.
- Measures in terms of employment management andin terms of instructions concerning problems caused bylanguage and behavior in relation to child care leave,family care leave, etc. in the workplace- Employer's responsibility concerning problems
caused by language and behavior in relation to childcare leave, family care leave, etc. in the workplace

7. Act on Comprehensive Promotion of Labor Policies and on Stabilization of Employment and Enhancement ofVocational Lives (Labor Policies Comprehensive Promotion Act)
Dispatching company- Measures in terms of employment management
concerning problems caused by language and behavior
based on a predominant position in the workplace- Employer's responsibility concerning problems
caused by language and behavior based on a
predominant position in the workplace

Client- Measures in terms of employment management
concerning problems caused by language and behavior
based on a predominant position in the workplace- Employer's responsibility concerning problems
caused by language and behavior based on a
predominant position in the workplace1853. Employers' Responsibility for Dispatched Workers and Obligation to Consider
SafetyAs it is a client that gives instructions and uses a dispatched worker, the client is not only subject to theapplication of the Labor Standards Act, etc. as mentioned above but also must be liable, in such relationship,
for any damage caused by a dispatched worker to someone while executing business. Additionally, for a person
who has come to have "special social contact," a client assumes the obligation to pay attention to such person's
safety and therefore a client is considered to have obligation to consider the safety of a dispatched worker(Judgment of the Urawa District Court rendered on the Sanpo Konpo Case on May 28, 1993).

4.

Application of Minimum Wages to Dispatched Workers
With regard to a dispatched worker, minimum wages (regional minimum wage or special minimum wage

(by industry)) applicable to the client's workplace apply. For example, if a dispatching company is located in
Saitama and a client is located in Tokyo, the regional minimum wage or special minimum wage (by industry)for Tokyo Metropolis applies to the relevant dispatched worker.

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V. Difference from Other Human Resources-related Businesses
1. Contract for Work
Contract for work differs from worker dispatching in that no relationship of giving and receiving
instructions arises between a contractee and a worker. However, it is not always easy to judge whether a certain
business falls under a worker dispatching or a contract for work. Therefore, classification criteria are defined(see references below).
Contract for work
Contractor

Contractee
Service contract

Employment
relationship/Relations
hip of giving andreceiving instructions

Worker・The contactor is the employer.
・The contractee does not give instructions to the worker.

2. Labor Supply BusinessLabor supply business is totally prohibited except for a free labor supply business carried out by a labor
union by obtaining a license from the Minister of Health, Labour and Welfare and a business falling under aworker dispatching undertaking under the Worker Dispatching Act (Article 44 of the Employment SecurityAct).
* Accepting a worker as a dispatched worker and further dispatching the relevant worker to a third party(double dispatching) falls under a labor supply business and is prohibited.
Labor supply businessSupplier
Relationship ofcontrol andsubordination(Employment
relationship/Substanti
al dominance

ClientLabor supply
contract

WorkerRelationship between
a user and a laborer(Employment
relationship/Actual
relationship of giving
and receiving

3. Fee-Charging Employment Placement Business
Employment placement business is a business to accept job offers and job applications and mediate theestablishment of an employment relationship between a job offerer and a job seeker. Operating an employment
placement business by receiving fees or compensation requires a license of the Minister of Health, Labour andWelfare (Article 30 of the Employment Security Act).
Employment placement business
Job offerer (employer)

Employment
placement businessproviderJob offer

Mediation

Job application

Employment
relationshipJob seeker (worker)

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< Reference 1 > Classification Criteria between Worker Dispatching Undertaking and Business underContract for Work
(Public Notice of the Ministry of Labour No.37 of 1986) (Extract)
Article 2 A company that has workers it employs engage in business to be performed under an agreement in theform of contract on a regular basis is to also fall under a company conducting a worker dispatching undertaking
except for cases where it falls under all of the following items in relation to the execution of the relevant business.
(i) Falling under all of (a) to (c) below and directly utilizing labor of a worker that the company employs by itself:(a)Falling under both i. and ii. below and individually giving instructions or otherwise conducting
management concerning the execution of work:i.
Individually give instructions or otherwise conduct management concerning means of executing work in
relation to the relevant worker
ii. Individually give instructions or otherwise conduct management concerning evaluations, etc. of therelevant worker's performance of work(b)
Falling under both i. and ii. below and individually giving instructions or otherwise conducting
management concerning working hours, etc.:
i. Individually give instructions or otherwise conduct management concerning the relevant worker's times ofstarting and finishing work, rest periods, days off, leave, etc. (excluding a duty to simply ascertain thesematters)ii. Individually give instructions or otherwise conduct management when extending the relevant worker's
working hours or when having the worker work on a day off (excluding a duty to simply ascertain working
hours, etc. in these cases)(c)
Falling under both i. and ii. below and individually giving instructions or otherwise conducting
management for the purpose of securing and maintaining order in the company:i.
Individually give instructions or otherwise conduct management concerning matters relating to therelevant worker's service disciplineii. Individually decide and change the relevant worker's assignments(ii)
Falling under all of (a) to (c) below and handling the work that the company undertook under a service
contract as its own work independently from the contractee:(a)Raising and paying all funds necessary for handling the work based on its own responsibility(b)Assuming all responsibilities for the handling of the work as a business operator prescribed under the
Civil Code, Commercial Code or other laws(c)
Falling under both i. and ii. below and not simply providing physical labor:i. Handle the work using machines, facilities or equipment (excluding simple tools necessary in the course of
trade), or materials that the company prepared and procured based on its own responsibility at its expenseii. Handle the work based on its own planning or on its specialized technology or experience

Whether a certain business falls under a worker dispatching undertaking or a contract for work is to be
judged based on the actual status. (Requirements for a contract for work indicated above mean that an employer
him/herself needs to give instructions and manage labor as its own business and execute business independently
based on his/her own responsibility in any case. These requirements also apply to consignment with the aim ofhandling the consigned work independently. Article 4 of the Regulation for Enforcement of the Employment
Security Act also indicates requirements for a contract for work so as not to be considered as a labor supply
business, but they are the same in substance.) Accordingly, even if the relevant business satisfies all of theabovementioned requirements, "if it intentionally engages in camouflage in order to avoid violating theprovisions of the Worker Dispatching Act, and its true purpose is to carry out the worker dispatching prescribedin Article 2, item (i) of the Act on a regular basis, the business cannot avoid being deemed as a worker
dispatching undertaking" (Article 3 of the Public Notice of the Ministry of Labour No.37 mentioned above).

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< Reference 2 > Promotion of Improvements and Adjustments of Employment Management in Contracts
for Work in the Manufacturing Industry
Contracts for work have been increasingly utilized in the manufacturing industry and have played significant
roles in manufacturing sites. However, with regard to contract-based workers (workers who are employed bya contractor and work in the form of a contract for work), working conditions, treatment or other employment
management are not necessarily sufficient as their employment contracts are often renewed repeatedly for shortterms, which makes it difficult for them to accumulate technologies and skills. Additionally, labor-related laws
and regulations are not strictly applied to them in actuality.
In light of the necessity to improve these circumstances to enable contract-based workers to effectively exert
their abilities throughout their current and future vocational lives, and also considering the characteristics ofcontracts for work wherein contractors are apt to be subject to influences of their contractees with regard to theemployment of contract-based workers, it should be said that cooperation of contractees is indispensable toeffectively promote improvements and adjustments of employment management in contracts for work.
Therefore, guidelines on measures to be taken for the improvements and adjustments of employment
management in contracts for work in the manufacturing industry were compiled respectively targeting
contractors and contractees.
○ "Guidelines on Measures to be Taken by Contractors Engaged in Promotion of Improvements andAdjustments of Employment Management in Contracts for Work in the Manufacturing Industry" (June2007)○ "Guidelines on Measures to be Taken by Contractees Engaged in Promotion of Improvements andAdjustments of Employment Management in Contracts for Work in the Manufacturing Industry" (June2007)○ "Check Sheet for Guidelines on Measures to be Taken by Contractors Engaged in Promotion of
Improvements and Adjustments of Employment Management in Contracts for Work in the Manufacturing
Industry" (October 2008)○ "Check Sheet for Guidelines on Measures to be Taken by Contractees Engaged in Promotion of
Improvements and Adjustments of Employment Management in Contracts for Work in the Manufacturing
Industry" (October 2008)

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Reassignment, Temporary Transfer,and Employment Transfer
I. Reassignment
Reassignment is to have a worker engage in a job other than his/her current job or have a worker work inanother work location. Changing a worker's work location accompanying a change of his/her residence is also
called relocation.

1. Right to Order Reassignment
In traditional employment practices in Japan, a worker is generally employed based on the premise thathe/she will engage in duties as ordered by the company in any place ordered by the company, without
specifically making an agreement on job types and workplaces, or on reassignments.
Under such circumstances, a judicial precedent on companies' right to order reassignment states that when
the possibility of reassignment is prescribed in rules of employment or a collective agreement, etc., suchprovision is construed to be included in a labor contract, and a company can order reassignment.

2. Special Clauses on Reassignment
In general, when rules of employment or any other document prescribes the possibility of reassignment due
to operational grounds, a company can order reassignment based on this provision. However, if there are any
special clauses on limitation on work locations or job types in relation to reassignment, such special clauses
are to be prioritized.

(1) Special clauses by implicit agreement
Special clauses may be established not only by explicit agreement (in writing, etc.) but also by implicit
agreement. However, they should preferably be clearly indicated in writing or by other means upon hiringin order to avoid risks of future disputes.

(2) Special clauses to limit work locations
When there are special clauses to limit work locations, a company cannot order reassignment thatcauses a change in work locations.
Therefore, when a certain work location is abolished due to discontinuation of a business, a company
has no choice but to dismiss the relevant worker. However, even in such case, from the perspective ofsecuring employment of a worker under a contract with special clauses to limit work locations, thecompany should confirm such worker's intentions regarding reassignment.

(3) Special clauses to limit job types
When there are special clauses to limit job types, a company cannot order reassignment to have aworker engage in other types of jobs. In general, special clauses to limit job types are only admitted to
specialized jobs, such as announcers, nurses and drivers.
Whether a contract includes special clauses to limit job types needs to be judged by comprehensively
taking into account not only the details of the job (concrete duties), but also the circumstances at the timeof the conclusion of the relevant labor contract, including explanations given upon hiring, andconventional practices of the company.

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II. Matters to Note upon Reassignment
Reassignment and other personnel transfers as a whole are subject to legal constraints. Legal constraints
include, for example, (1) principle of equal treatment (Article 3 of the Labor Standards Act); (2) prohibition ofpunitive disadvantageous treatment (Article 104, paragraph (2) of the Labor Standards Act, Article 4, paragraph(3) and Article 5, paragraph (2) of the Act on Promoting the Resolution of Individual Labor-Related Disputes,
Article 49-3, paragraph (2), etc. of the Worker Dispatching Act, Article 38-4, paragraph (1), item (vi) the Labor
Standards Act, and Articles 3 and 6 of the Whistleblower Protection Act); (3) prohibition of unfair labor
practices (Article 7 of the Labor Union Act); (4) prohibition of discrimination on the basis of sex (Article 6,paragraph (1) of the Equal Employment Opportunity Act); (5) prohibition of disadvantageous treatment on the
grounds of pregnancy or childbirth, etc. (Article 9, paragraph (3) of the Equal Employment Opportunity Act);(6) prohibition of disadvantageous treatment on the grounds of applying for and acquiring child care leave,family care leave, or time off for sick/injured childcare, etc. (Article 10, etc. of the Child Care and Family Care
Leave Act); and (7) public policy (Article 90 of the Civil Code). Article 26 of the Child Care and Family Care
Leave Act provides that when a reassignment causes any worker to face difficulties in providing child care or
family care, the employer must give consideration for the worker's situation with regard to child care or familycare.

III. Temporary Transfer
Temporary transfer (where the original employment is maintained) is a work pattern wherein a worker
provides labor under supervision of a third-party company (an accepting company) while maintaining the statusof an employee based on an employment agreement with the original employer (original company).
Forms of temporary transfer adopted by companies are not necessarily the same, but in the broadly adopted
case of temporary transfer where the original employment is maintained, a worker is transferred by his/her
original employer to an affiliated company or other third-party company (an accepting company), obtains a
position of a worker of the accepting company, while continuously belonging to the original company, andprovides labor under instructions of the accepting company as a member thereof.
Article 14 of the Labor Contracts Act provides that "if an employer may order the temporary transfer of aworker, and such order of temporary transfer is found to be an abuse of rights when considering the need forsuch temporary transfer, the circumstances pertaining to the selection of the worker to be temporarilytransferred, or any other circumstances, such order is invalid."

IV. Application of the Labor Standards Act to Temporarily Transferred
Workers
When applying the Labor Standards Act to a temporarily transferred worker, a problem occurs as to whether
the Act should be applied to the original company or to the accepting company. In other words, the problem iswhether the person should be treated as a worker of the original company or a worker of the accepting company,
or in the event of a violation of the Labor Standards Act, which company should be liable for that violation.
A Public Notice presented the following construction: "In the case of a temporarily transferred worker who
maintains the original employment, labor contract relationships exist both with the original company and theaccepting company, and the Labor Standards Act and other laws and regulations apply to both within the scopeof respective labor contract relationships. In other words, both the employer of the original company and theemployer of the accepting company should be liable for the relevant worker as an employer under the Labor
Standards Act, etc. in accordance with the authorities and responsibilities determined through an agreement
among the original company, the accepting company and the temporarily transferred worker." (Kihatsu No.333
of June 6, 1986)
Additionally, regarding the application of the Labor Standards Act in the case where a number of companies
had given funds to establish a company to temporarily transfer engineers, a Public Notice presented thefollowing construction: "A (temporarily transferred) worker receives instructions from the accepting company
regarding concrete means of executing work, times to start and finish work, rest periods and other matters, anda labor relationship exists between the worker and the accepting company to that extent, while the originalcompany maintains the authority to dismiss the worker and pays wages, and a labor relationship also exists
between the worker and the original company to that extent. In this case, the Labor Standards Act applies toboth companies to the extent of labor relationships respectively existing with the relevant worker." The Public

191

Notice cited related provisions of the Labor Standards Act as follows to concretely show how the Act applies
in such case (Kishu No.4901-2 of November 18, 1960).
Application

Item

Relevant provisions of theLabor Standards Act

Original company

Wages

Article 24◎

Working hours, rest
periods, days off, andleave

Articles 32, 34, and 35◎

Industrial safety andhealthChapter V◎

Industrial accident
compensation

Chapter VIII◎

Rules of employment

Chapter IX

Roster of workers andwage ledger

Articles 107 and 108

Accepting company

Within the scope of the authority held respectively◎◎

V. Employment Transfer
Employment transfer means to terminate a worker's labor contract relationship with the original company
and newly establish a labor contract relationship with an accepting company through agreement between theoriginal company and the accepting company.
This is sometimes called temporary transfer accompanying a change or shift of employment. The
abovementioned temporary transfer is a partial transfer of a labor contract, while employment transfer is atransfer of a labor contract in full (the right to give instructions), and it should be noted that legal relations aredifferent.
A judicial precedent states that in order to issue an order for employment transfer, not only the relevant
provisions in rules of employment, etc. but also the individual consent of a worker is required (Judgment of
the Tokyo District Court rendered on the Sanwa Kizai Case on January 31, 1992). Accordingly, a company
may not order employment transfer unilaterally and may not take any disciplinary action to a worker who
rejects such order. On the other hand, there is a judicial precedent ruling that it is not necessary to obtainconsent of a worker anew under a circumstance where personnel exchanges with affiliated companies areincluded in a company's personnel system and a worker agreed with a possible employment transfer to anaffiliated company upon joining the company, etc. (when comprehensive agreement has been reached)(Judgment of the Chiba District Court rendered on the Hitachi Seiki Case on May 25, 1981).

1. Working Hours, Days Off, Leave, Wages and Other Working Conditions
In the case of employment transfer, the labor contract relationship is completely transferred to an accepting
company and working conditions are all determined by the accepting company. However, for workers who will
suffer any disadvantage in retirement allowances, etc. due to employment transfer, some companies take certain
measures such as increasing retirement allowances or making adjustments to ensure a managerial position inan accepting company.

2. Succession of a Labor Contract upon Company Split
In the case of a company split, whether a labor contract is to be succeeded depends on whether a worker
mainly engages in a business to be succeeded or not (Articles 3 to 5 of the Act on the Succession to Labor
Contracts upon Company Split (hereinafter referred to as the "Labor Contracts Succession Act")). A labor
contract of a worker to be succeeded upon a company split is comprehensively succeeded from a company

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implementing the company split (a split company) to a succeeding company, etc. and working conditions
stipulated therein are maintained as they are.

(1) In the case of a worker mainly engaging in the succeeded businessIn the case of a worker mainly engaging in the succeeded business for whom a company split
agreement or other document provides for the succession of a labor contract, he/she is to be succeeded toa succeeding company, etc. even without his/her consent. In this case, a worker cannot file an objection.
However, in the case of a worker mainly engaging in the succeeded business but for whom a company
split agreement or other document does not provide for the succession of a labor contract (a worker
remaining in the split company), such worker may file an objection and is to be succeeded to a succeedingcompany, etc. in accordance with his/her intent.

(2) In the case of a worker other than one mainly engaging in the succeeded business
A worker other than one mainly engaging in the succeeded business for whom a company split
agreement or other document provides for the succession of a labor contract may file an objection and isto remain in the split company in accordance with his/her intent.
A worker for whom a company split agreement or other document does not provide for the successionof a labor contract may not assert succession.
Under the Companies Act, a worker who does not at all engage in the succeeded business may also
be succeeded to a succeeding company, etc. by providing for the succession of a labor contract in acompany split agreement or other document. However, such worker does not fall under a worker mainly
engaging in the succeeded business, and can file an objection to the split company, and a worker filingsuch an objection is to remain in the split company.
The abovementioned (1) and (2) are schematized as follows. For detail, see the website of the Ministry of
Health, Labour and Welfare (http://www.mhlw.go.jp/general/seido/toukatsu/roushi/dl/01d.pdf).

Succession of a Labor Contract
Whether a labor contract is to be succeeded upon a company split is determined depending on the business a worker engages in and the provisionsof a company split agreement or other document (Articles 4 and 5 of the Labor Contracts Succession Act).
(e.g.) Company P, which has a manufacturing division and a retail division, intends to split the retail division and have Company Q succeed to it

Whether mainly engaging
in the succeeded business(retail division)

Provision on the succession
is contained in a company
Contained
split agreement, etc.

Succeeded to Company Q(The company is not obliged to respond to an objection filed by A.)

Engaging

Worker A

Not
contained

Provision on the succession
is contained in a company Contained
split agreement, etc.

Not succeeded (remain in Company P)(A is to be succeeded to Company Q by filing an objection.)

Succeeded to Company Q(A is not to be succeeded to Company Q by filing and objection.)

Not engaging
Not
contained

Not succeeded (remain in Company P)* Worker A's working conditions at the split company (Company P) are succeeded to a succeeding company, etc. (Company Q) as they are.
* A company split agreement or other document: meaning a company split agreement in the case of an absorption-type company split, and acompany split plan in the case of an incorporation-type company split

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3. Employment Transfer through Business Transfer
When a company intends to order employment transfer to workers upon business transfer, instead of acompany split, the company must obtain consent individually from targeted workers (Article 625, paragraph(1) of the Civil Code).
As in the case of a company split, dismissal or any disadvantageous changes to working conditions only on
the grounds of business transfer are not permitted.

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Industrial Safety and HealthI. Basic Principles for Measures for Industrial Safety and Health
1. Safety Measures
Industrial accidents occur due to a contact between an object and a human in cases such as where continued
use of a machine with a defect causes a worker to get caught therein or to be exposed to hazardous materials.
In order to prevent such industrial accidents, it is important to ensure that machines, etc. are not in an unsafe
state and to eliminate workers' unsafe behavior. An employer (as prescribed in the Industrial Safety and Health
Act; in this Act, an employer is defined as "one who carries on an undertaking and employs a worker orworkers," referring to an employer him/herself in the case of a solo entrepreneur and a corporation itself in thecase of a corporation) is required to promote safety management in order to eliminate such unsafe state andbehavior.
Accordingly, workplaces need to appoint a safety officer, health officer, safety and health promoter, andoperation chief, depending on the number of workers and work types.
Additionally, in order to ensure the safety of machines and equipment, it is necessary to cover dangerous
parts, install safety systems appropriately, and conduct safety inspections.
Regarding workers who are to engage in dangerous work or other restricted types of work, it is also necessary
to require them to obtain a license or qualification through skill training and provide them with industrial safety
and health-related education.
Furthermore, an employer needs to analyze industrial accidents that occurred in its workplaces or in otherworkplaces of similar types, draw up measures and work procedures to prevent the recurrence of similar
accidents and have workers work based thereon.

2. Industrial Health Measures
Industrial health measures basically consist of [i] management of the working environment, [ii] managementof work, and [iii] management of health. While promoting these in an interconnected manner, an employer
needs to develop an industrial health management system and provide industrial health-related education.

(1) Development of an industrial health management system
It is indispensable to establish an industrial health management system in a workplace in order topromote concrete measures such as the abovementioned three types of management. An employer should
be aware of the significance of industrial health management in executing business, and should develop
a system by granting sufficient authority to industrial physicians, health officers, health promoters, andother relevant staff and clarifying their responsibilities.

(2) Management of the working environment
In order to ascertain the working environment in the workplace for its management, it is basicallynecessary to conduct a working environment measurement, properly evaluate the results thereof, andcheck the appropriateness of the environment. Based on the results of these procedures, an employer needs
to take required measures such as improvement of facilities, proper maintenance of production equipment
and local ventilation equipment, and strict implementation of inspections.

195

(3) Management of work
Basically, in order to manage work, it is necessary to determine appropriate work procedures andmeans to prevent hazardous factors from occurring and reduce workers' exposure to harmful materials,
and to have workers strictly observe them. Appropriate use of protective equipment is also important.

(4) Management of healthManagement of the health broadly covers medical examinations and follow-up measures based on the
results thereof and health guidance based on the results of health measurements. An employer needs toproperly conduct medical examinations not only for detecting workers' diseases early but also forpreventing the impairment of workers' health in advance. It is also important to take measures to promoteand maintain both the mental and physical health of workers.

(5) Industrial health-related education
In order to have workers correctly understand the abovementioned three types of management,
industrial health-related education should be provided upon hiring, upon changing work content, and uponassigning dangerous and injurious work, continuously in a planned manner. It is also important to provide
education to persons in managerial positions, not only to workers.

3. Obligation to Consider Workers' Safety (Health)
Normally, workers engage in work in a place as designated by the employer, using facilities and equipment
provided by the employer. Therefore, an employer is naturally supposed to have obligation to protect workers
and consider their safety including their mental and physical health, in accordance with the principle of goodfaith under a labor contract, even if such obligation is not concretely specified therein (Article 5 of the Labor
Contracts Act). Required measures are not uniformly defined but respective employers are required to givenecessary consideration in accordance with the job type, content of labor and place of proving labor of eachworker.
Concrete measures to be taken by employers are prescribed in the Industrial Safety and Health Act and otherrelated laws and regulations, and employers must naturally observe these measures.

< Reference >Japan Ground Self-Defense Force Case seeking
compensation for damages

Kawayoshi Case seeking compensation fordamagesJudgment of the Third Petty Bench of the Supreme
Courte rendered on February 25, 1975
"It should be construed that the national government
assumes the obligation to give consideration toprotect the lives and health, etc. of public employees
when managing the place for public services or
installing and managing facilities and equipment for
public services or when managing public services
fulfilled by public employees under instructions of
the national government or their superiors(hereinafter such obligation is referred to as'obligation to consider safety')." "Such obligation toconsider safety is generally deemed as the obligationthat one party who has come to have special social
contact with the other party under a certain legal
relationship assumes against that other party as theobligation accompanying the relevant legal
relationship, in accordance with the principle of goodfaith."

Judgment of the Third Petty Bench of the Supreme
Courte rendered on April 10, 1984
"An employment contract is a bilateral contract forvalue basically stipulating a worker's provision oflabor and an employer's payment of rewards. In
normal cases, a worker is assigned to a placedesignated by the employer and provides labor using
facilities and equipment provided by the employer.
Therefore, it is reasonable to construe that an
employer is not only obliged to pay rewards but also
obliged to give consideration to protect the life andhealth, etc. of a worker in the process wherein theworker provides labor using the place, facilities or
equipment installed for labor provision under
instructions of the employer (hereinafter suchobligation is referred to as 'obligation to consider
safety')."196

II. Industrial Safety and Health Management System
The Industrial Safety and Health Act requires an employer to establish an industrial safety and healthmanagement system as follows, including the appointment of general safety and health managers.
Workplaces are required to appoint a general safety and health manager and other staff as follows inaccordance with the industry type and the number of regularly employed workers.
Number of regularly employed workers

Industry type I

Forestry
MiningConstruction
Transportation
Cleaning

10 to 49

50 or more

100 or more

Safety and healthpromoter

Safety officer;
Health officer
Industrial
physicianGeneral safety andhealth manager;
Safety officer;
Health officer
Industrial physician

Number of regularly employed workers
Industry type II
Manufacturing (including processing)Electric power supply, gas supply, heat supply
and water supply
Telecommunications
Wholesale and retail
Wholesale and retail of furniture, fittings andfixtures, etc.
Retail of fuelHotelsGolf courses
Automotive servicing and mechanicalservicing

10 to 49

50 or more

300 or more

Safety and healthpromoter

Safetyofficer;
HealthofficerIndustrial
physicianGeneral safety and healthmanager;
Safety officer;
Health officer
Industrial physician

Number of regularly employed workers

Industry type III

Others10 to 49

50 or more

1,000 or more

Health promoter

HealthofficerIndustrial
physicianGeneral safety and healthmanager;
Health officer;
Industrial physician

1. General Safety and Health Manager
As indicated in the table above, workplaces in industry type I with 100 or more regularly employed workers,
workplaces in industry type II with 300 or more regularly employed workers, and workplaces in industry type
III with 1,000 or more regularly employed workers must appoint a general safety and health manager and havethat manager lead safety officers and health officers and generally manage [i] matters pertaining to measures
for the prevention of the dangers or health impairment of workers, [ii] matters pertaining to the provision of
education on the safety and health of workers, [iii] matters concerning the implementation of medical
examinations, and follow-up measures based thereon, management of the working environment, healthguidance, and promotion of maintenance of workers' health, and [iv] matters pertaining to investigations of thecauses of industrial accidents and the measures for preventing the recurrence of such accidents (Article 10 of
the Industrial Safety and Health Act).
When having appointed a general safety and health manager, a workplace must report that fact by using theprescribed form (Form 3 of the Regulation on Industrial Safety and Health) to the Director-General of thecompetent Labour Standards Inspection Office.

197

2. Safety Officer
As indicated in the table above, workplaces in industry type I or II with 50 or more regularly employedworkers must appoint a safety officer and have the officer take measures necessary for preventing industrial
accidents (Article 11 of the Industrial Safety and Health Act).
A safety officer must be appointed from among those who fall under any of the following and havecompleted the training specified by the Minister of Health, Labour and Welfare (Article 5, item (i) of theRegulation on Industrial Safety and Health).
[i] A person who graduated a science course of a university or college of technology and has engaged inindustry safety-related work for not less than two years[ii] A person who graduated a science course of a high school and has engaged in industry safety-related
work for not less than four years[iii] A person who graduated a non-science course of a university or college of technology and has engaged
in industry safety-related work for not less than four years[iv] A person who graduated a non-science course of a high school and has engaged in industry safetyrelated work for not less than six years[v] A person who has engaged in industry safety-related work for not less than seven years and hascompleted certain training sessions
Thus, certain qualifications including the above is required for a safety officer.
When having appointed a safety officer, a workplace must report that fact by using the prescribed form
(Form 3 of the Regulation on Industrial Safety and Health) to the Director-General of the competent Labour
Standards Inspection Office.

3. Health Officer
Workplaces with 50 or more regularly employed workers must appoint a health officer and have the officer
patrol the workplace at least once a week and take measures necessary for preventing health impairment ofworkers (Article 12 of the Industrial Safety and Health Act and Article 11 of the Regulation on Industrial Safety
and Health).
A health officer is to be appointed from among physicians or persons having a health officer's license.
When having appointed a health officer, a workplace must report that fact by using the prescribed form
(Form 3 of the Regulation on Industrial Safety and Health) to the Director-General of the competent Labour
Standards Inspection Office.

4. Safety and Health Promoter (Health Promoter)
As indicated in the table above, workplaces in industry type I or II with 10 or more but less than 50 regularly
employed workers must appoint a safety and health promoter and have that person take charge of duties
concerning industrial safety and health, and workplaces in industry type III of the same size must appoint a
health promoter and have that person take charge of duties concerning industrial health (Article 12-2 of theIndustrial Safety and Health Act).
A safety and health promoter and health promoter are to be appointed from among persons who haveengaged in industry safety and health-related work for not less than five years.
Concrete duties of a safety and health promoter and health promoter are as follows (for health promoter,
limited to duties relating to industrial health).
[i]
Matters pertaining to inspections of facilities and equipment (including safety systems, industrial healthrelated facilities, protective equipment, etc.) and checking of their use status, and necessary measures basedon the results of those inspections and checking[ii] Matters pertaining to inspections of the working environment (including working environment
measurement) and work methods, and necessary measures based on the results of those inspections[iii] Matters pertaining to medical examinations and measures for maintenance and promotion of workers'
health198

[iv] Matters pertaining to industrial safety and health-related education[v] Matters pertaining to emergency measures in the event of abnormal circumstances[vi] Matters pertaining to investigations of the causes of industrial accidents and the measures for preventing
the recurrence of such accidents[vii] Matters pertaining to collection of industrial safety and health-related information and creation of
statistics on industrial accidents, diseases, various types of leave, etc.
[viii] Matters pertaining to reports and notifications relating to industrial safety and health to be filed with
relevant administrative organs
A safety officer or health officer is a person who manages technical matters in industrial safety and healthrelated services and is positioned as a person with the authority and responsibility in managing those services,while a safety and health promoter or health promoter is positioned as a person who takes charge of thoseservices under direction of a person with the authority and responsibility.

5. Industrial Physician
Workplaces with 50 or more regularly employed workers must appoint an industrial physician and have thephysician manage the health of the workers (Article 13 of the Industrial Safety and Health Act).
When having appointed an industrial physician, a workplace must report that fact by using the prescribed
form (Form 3 of the Regulation on Industrial Safety and Health) to the Director-General of the competentLabour Standards Inspection Office.
An employer who has appointed an industrial physician must provide him/her with the following information
as necessary information for properly managing workers' health, such as their working hours (Article 13,
paragraph (4) of the Industrial Safety and Health Act).
[i] Information on the details of the measures that the employer has already taken or intends to take under theprovisions of Article 66-5, paragraph (1), Article 66-8, paragraph (5) (including the case where appliedmutatis mutandis by replacing the terms pursuant to Article 66-8-2, paragraph (2) or Article 66-8-4,
paragraph (2) of the Act) or Article 66-10, paragraph (6) of the Act (when the employer does not take thesemeasures, that fact and the reasons therefor)[ii] Information on names of the workers whose excess working hours as prescribed in Article 52-2, paragraph(1), Article 52-7-2, paragraph (1) or Article 52-7-4, paragraph (1) of the Regulation on Industrial Safety and
Health exceeded 80 hours per month and on the relevant excess working hours of the relevant workers[iii] In addition to the information mentioned in [i] and [ii] above, information on workers' duties that theindustrial physician finds necessary for properly managing their health
An industrial physician may give an employer recommendations as needed for securing workers' good health,and an employer who received any recommendations must respect them (Article 13, paragraph (5) of theIndustrial Safety and Health Act).
An employer who received any recommendations from an industrial physician must report the details of therecommendations and measures that the employer has taken or intends to take based on the recommendations(when the employer does not take any measures, that fact and the reasons therefor) to a health committee or asafety and health committee without delay after receiving the recommendations (Article 13, paragraph (6) of
the Industrial Safety and Health Act).
Concrete duties of an industrial physician relate to the following matters which require specialized medical
knowledge (Article 14, paragraph (1) of the Regulation on Industrial Safety and Health).
[i] Matters pertaining to the implementation of medical examinations and measures for maintaining workers'
health based on the results thereof[ii] Matters pertaining to the implementation of the face-to-face guidance prescribed in Article 66-8,
paragraph (1) of the Industrial Safety and Health Act and the necessary measures prescribed in Article 66-9of the same Act, and measures for maintaining workers' health based on the results thereof[iii] Matters pertaining to the implementation of the test for ascertaining workers' levels of psychologicalburdens prescribed in Article 66-10, paragraph (1) of the same Act (stress check), the implementation of theface-to-face guidance prescribed in paragraph (3) of the same Article, and measures for maintaining workers'
health based on the results thereof[iv] Matters pertaining to the maintenance and management of the working environment[v] Matters pertaining to the management of work199

[vi] In addition to [i] to [v] above, matters pertaining to the management of workers' health[vii] Matters pertaining to health education, health guidance and other measures for promoting and maintaining
workers' health[viii]Matters pertaining to industrial health-related education[ix] Matters pertaining to investigations of the causes of the impairment of workers' health and the measuresfor preventing the recurrence of such impairment
An industrial physician manages the health of workers as an expert of industrial medical science and cangive recommendations to a general safety and health manager with regard to the manager's duties and can also
provide a health officer with necessary advice and guidance (Article 14, paragraph (3) of the Regulation on
Industrial Safety and Health).
Furthermore, an industrial physician needs to patrol the relevant workplaces, etc. at least once a month(*) inorder to surely fulfil his/her duties and when he/she finds any risk of harmfulness in work methods or sanitaryconditions, he/she must immediately take necessary measures for preventing the impairment of workers' health(Article 15 of the Regulation on Industrial Safety and Health).
(*) When an industrial physician receives the following information [i] to [iii] from an employer every monthand has obtained consent from the employer, it suffices to conduct patrols at least once every twomonths.
[i] Results of a weekly patrol by a health officer[ii] Information that the employer decided to provide to the industrial physician through theinvestigations and deliberations by the health committee, etc.
[iii] When having had workers work more than 40 hours per week, excluding rest periods, namesof the workers whose excess working hours exceeded 80 hours per month and information on
those excess working hours of respective workers
Workplaces with less than 50 regularly employed workers are not required to appoint an industrial physician,but have to make efforts for workers' health management by such means as appointing a physician or publichealth nurse who has medical knowledge necessary for managing workers' health or utilizing local offices(Regional Industrial Health Centers) of the Industrial Health Total Support Center, which are establishednationwide, for the management in full or in part.

6. Safety Committee and Health Committee
Workplaces with 50 or more regularly employed workers need to establish a health committee to have it
investigate and deliberate on [i] matters pertaining to the basic measures for preventing the impairment ofworkers' health, [ii] matters pertaining to the basic measures for promoting and maintaining workers' health,[iii] matters pertaining to investigations of the causes of industrial accidents and the measures for preventing
the recurrence of such accidents that pertain to industrial health, and [iv] other significant matters pertaining
to the prevention of the impairment of workers' health and promotion and maintenance of workers' health(Article 18 of the Industrial Safety and Health Act).
Additionally, workplaces listed in the following table also need to establish a safety committee to have it
investigate and deliberate on [i] matters pertaining to the basic measures for preventing dangers to workers,[ii] matters pertaining to investigations of the causes of industrial accidents and the measures for preventing
the recurrence of such accidents that pertain to industrial safety, and [iii] other significant matters pertaining to
the prevention of dangers to workers (Article 17 of the Industrial Safety and Health Act).
Half of the members other than the chair of a safety committee and a health committee need to be appointed
based on recommendations of a labor union consisting of the majority of the workers or a person representing
the majority of the workers. Workplaces which are required to establish both a safety committee and a healthcommittee may establish a safety and health committee in lieu of the respective committees (Article 19 of theIndustrial Safety and Health Act).
A safety committee and a health committee must be convened at least once every month.

200

< Workplaces that are required to establish a safety committee >Number of regularly

Industry type

employed workers

Forestry; Mining; Construction; Manufacture of lumber andwood product; Chemical; Iron and steel, Manufacture ofmetal products; Manufacture of transportation machineryand equipment; Road transportation; Port and harbor

50 or moretransportation; Automobile maintenance; Machine repair;and Cleaning
Transportation (excluding those listed in the upper column);
Manufacturing (excluding those listed in the upper column);
Electric power supply; Gas supply; Heat supply; Water
supply; Telecommunications; Wholesale; Wholesale of 100 or more
furniture, fittings and fixtures, etc.; Retail; Retail offurniture, fittings and fixtures; Retail of fuel; Hotels; andGolf courses

201

III. Health Management
1. Medical Examinations
Medical examinations conducted in workplaces are important for early detection and prevention of workers'
diseases and also helpful in making judgments upon employment and later assignment of workers. Employers
must conduct medical examinations and workers must receive medical examinations conducted by theiremployers. However, this does not apply when a worker refuses to receive an examination by a physician or
dentist designated by his/her employer but has received a medical examination by another physician or dentist
and submits a document proving the results of that medical examination.
Matters to note regarding medical examinations under laws and regulations are as follows (Article 66 of theIndustrial Safety and Health Act and Articles 43, 44, and 45 of the Regulation on Industrial Safety and Health).

(1) Timing of conducting medical examinations
An employer must conduct medical examinations for its workers upon hiring and once every year
thereafter (for workers engaging in work including night work, once within every six months).

(2) Coverage
Medical examinations must be conducted for regularly employed workers. With regard to part-timeworkers, medical examinations are mandatory for those who are scheduled to work continuously for one
year or longer (for workers engaging in work including night work, continuously for six months or longer)
and those who have been working continuously for one year or longer (for workers engaging in work
including night work, continuously for six months or longer) and whose regular weekly working hours
are not shorter than three-quarters of those of ordinary workers.

(3) Medical examination items
Medical examination items are as follows.
[i]

Questions on medical and work histories[ii] Examination of subjective and objective symptoms[iii] Measurement of height, weight, waist circumference, eyesight and hearing[iv] Chest X-ray examination and sputum examination[v] Blood-pressure measurement[vi] Anemia test[vii] Liver function test[viii]Blood lipid level test[ix] Blood sugar test[x] Urine test[xi] Electrocardiogram examination
From among these, examinations of the following items for the following workers may be omitted inperiodical medical examinations if a physician finds them unnecessary.

202

Item

Workers who can be excluded

Measurement of height

Workers aged 20 or older

Measurement of waist
circumference

1. Workers aged under 40 (excluding those aged 35)
2. Pregnant female workers or other workers for whom it has been found that theirwaste circumferences do not reflect the accumulation of visceral fat
3. Workers whose BMI is less than 20
4. Workers whose BMI is less than 22 and who had conducted measurement
individually and reported the measurement results(*BMI = Weight(kg)/Height(m)2)

Chest X-ray
examination

Workers aged under 40 who do not fall under any of the following
1. Workers at milestone ages of every five years (aged 20, 25, 30 and 35)
2. Workers working at a facility, etc. subject to the obligation of periodical
examinations for tuberculosis under the Infectious Disease Act
3. Workers who are required to receive pneumoconiosis examinations once every three
years under the Pneumoconiosis Act

Sputum examination

1. Workers exempted from Chest X-ray examination
2. Workers the results of whose Chest X-ray examination show no lesions
3. Workers who were diagnosed as being unlikely to develop tuberculosis as a resultof Chest X-ray examination

Anemia test; Liverfunction test; Blood
Workers aged under 40 (excluding those aged 35)
lipid level test; Bloodsugar test; andElectrocardiogram
examination
A hearing test should be conducted using a pure-tone audiometer (at 1,000 Hz and 4,000 Hz), inprinciple, but any methods as approved appropriate by a physician may be employed for workers aged
under 40, except for those aged 35 and 40.
With regard to medical examinations for workers engaging in specified duties including night work,
which must be conducted once within every six months, the following tests and examination may also be
omitted, in addition to those listed in the table above.
Item

Workers who can be excluded

Anemia test; Liverfunction test; Blood
lipid level test; Bloodsugar test; andElectrocardiogram
examination

Workers who received these tests in the preceding medical examinations (within six months)
and for whom a physician finds no need to conduct these tests(4) Notification of medical examination results
An employer must notify a worker of the results of the medical examinations (Article 66-6 of theIndustrial Safety and Health Act). A notification must cover not only the general health assessment results
but also test results of respective items. Notification methods are as follows.
A. Deliver a statement of the individual examination results to each worker
B. Present a copy of a necessary part of the individual medical examination sheet203

(5) Follow-up measures after medical examinations
If there is any worker who is diagnosed as having abnormalities as a result of medical examinations(including medical examinations based on the provisions of Article 66-2 of the Industrial Safety and
Health Act that a worker engaging in night work voluntarily received (voluntary medical examinations)and follow-up medical examinations based on the provisions of Article 26, paragraph (2), item (i) of theIndustrial Accident Compensation Insurance Act), an employer must take into account opinions thathe/she heard from a physician or dentist (hereinafter referred to as a "physician, etc.") concerning
measures necessary for maintaining the health of the relevant worker (Article 66-4 of the Industrial Safety
and Health Act), and when he/she finds it necessary, the employer must take measures appropriately,
including changing the location of work, changing the work content, shortening the working hours,
reducing the frequency of night work, or transferring the worker to a day-shift position, in considerationof the circumstances of the relevant worker, along with conducting working environment measurements,
installing or improving facilities or equipment, and reporting the opinions of the physician, etc. to thehealth committee, etc. (Article 66-5 of the Industrial Safety and Health Act).
Concrete measures are presented in the "Guidelines on Measures to be Taken by Employers Based on
Medical Examination Results" (Public Notice of October 1, 1996).

(6) Submission of voluntary medical examination results
As night work (meaning work from 22:00 to 5:00, in principle) is highly likely to affect the health ofworkers, a worker who engaged in night work four times or more per month may submit a document
certifying the results of a medical examination he/she received voluntarily to his/her employer (Article66-2 of the Industrial Safety and Health Act and Articles 50-2 and 50-3 of the Regulation on Industrial
Safety and Health).

(7) Follow-up medical examination benefits system
This is a system to provide follow-up medical examinations and specified health guidance as followup medical examination benefits covered by the industrial accident insurance upon a request by a worker
who was diagnosed as having abnormalities in all of the following tests and measurement, which relate
to brain and cardiac diseases, as a result of the latest periodical medical examinations conducted based on
the Industrial Safety and Health Act.
A. Blood-pressure measurement
B. Blood lipid level test
C. Blood sugar test
D. Measurement of waist circumference or BMI (degree of obesity)(8) Hearing of opinions of physicians, etc. on medical examination results
An employer must hear the opinions of a physician, etc. on medical examination results (limited tothose relating to workers who were diagnosed as having abnormalities in any items of the relevant medical
examinations) (Article 66-4 of the Industrial Safety and Health Act).
A. Physician, etc. from whom an employer hears the opinions
In a workplace subject to the obligation to appoint an industrial physician, it is appropriate to hear
the opinions from such industrial physician as he/she is supposed to be able to ascertain the healthconditions, work content and working environment of respective workers in detail.
In a workplace exempted from such obligation, it is appropriate to hear the opinions from a physician,etc. who has medical knowledge necessary for managing workers' health, etc.
B. Content of the opinions
An employer needs to hear the opinions of a physician, etc. concerning the necessity of taking
measures concerning workers' working patterns, details of the required measures, or the like.
[i]
Opinions on working pattern classifications and details thereof204

An employer should ask for judgments of a physician, etc. with regard to the relevant worker's
working pattern and details thereof as exemplified as follows.
Working pattern
Classification

Details

Normal work

Can work anormalschedule

Details of the required measures

Need
Limitation on
limitation on
work
work

In order to reduce burdens due to work, it is necessary to take such measures
as shortening working hours, limiting business trips, limiting overtime work,
limiting workload, changing work content, changing work location, reducing
the frequency of night work, or transferring to a day-shift position.

Absencerequired

It is necessary to take measures to suspend work for a certain period of timein a form of days off or absence from work for the purpose of medical
treatment.

Need absencefrom work[ii]

Opinions on the management of work and the working environment
When medical examination results revealed the necessity to review the management of work andthe working environment, an employer should seek opinions of a physician, etc. concerning theimplementation of working environment measurements, installation or improvement of facilities or
equipment, improvement of work methods and other appropriate measures.
C. Method and timing of hearing opinions
An employer should ask a physician, etc. to enter his/her opinions concerning measures to be takenin the "Opinions of Physicians, etc." section in an individual's medical examination sheet based on theRegulation on Industrial Safety and Health, etc.
It is preferable to hear the opinions of physicians, etc. promptly.

(9) Health guidance
In order to promote workers' voluntary efforts to manage their health, an employer must endeavor toprovide health guidance by a physician or a health nurse for workers who are especially deemed necessary
to maintain their health according to medical examination results pursuant to the provisions of Article 667, paragraph (1) of the Industrial Safety and Health Act.

(10) Preparation of individuals' medical examination sheets
An employer must prepare individuals' medical examination sheets based on medical examination
results and retain them for five years (Article 103 of the Industrial Safety and Health Act and Article 51of the Regulation on Industrial Safety and Health). When a workplace with 50 or more regular employedworkers conducted periodical medical examinations, a report of the periodical medical examination
results must be submitted to the Director-General of the competent Labour Standards Inspection Officewithout delay (Article 100 of the Industrial Safety and Health Act and Article 52 of the Regulation on
Industrial Safety and Health).

2. Face-to-Face Guidance by a Physician for Workers Working Long Hours
Prolonged work, which increases burdens on workers and reduces their chances to have sufficient sleep
and rest, is considered to be one of the major causes of workers' accumulated fatigue.
Therefore, Articles 66-8, 66-8-2, 66-8-4 and 66-9 of the Industrial Safety and Health Act provide thatan employer must provide face-to-face guidance by a physician to a worker who is considered to haveaccumulated fatigue due to prolonged work.

205

Face-to-face guidance by a physician aims to ascertain the health conditions of workers working longhours with higher risks of generating health impairment, provide such workers with guidance according
to their respective health conditions, and take follow-up measures based on the results of the guidance.
A.An employer must ascertain each worker's working hours based on an objective means, such as records
on a time card (or based on self-report under unavoidable circumstances) (Article 66-8-3 of theIndustrial Safety and Health Act).
B. When a worker's weekly working hours in excess of 40 hours exceeded 80 hours per month and theworker is found to have accumulated fatigue, an employer must provide him/her with face-to-faceguidance by a physician in response to his/her request (Article 66-8 of the Industrial Safety and HealthAct) (excluding workers who have received face-to-face guidance within one month and for whom aphysician finds no need for another face-to-face guidance).
[i]

Excess weekly working hours must be calculated at least once a month by specifying a base
date.

[ii]

A physician checks a worker's working situations, accumulation of fatigue, and other mental

and physical statuses (including the aspect of mental health) and provides him/her with necessary
guidance.
[iii]

An employer must hear the opinions of a physician concerning measures necessary for

maintaining the health of a worker who has received face-to-face guidance.
[iv]

An employer must take into account the opinions of a physician, and when he/she finds it

necessary, the employer must take measures appropriately, including changing the location of work,changing the work content, shortening the working hours, or reducing the frequency of night work,in consideration of the circumstances of the relevant worker, along with reporting the opinions of thephysician to the health committee, etc.
C.

With regard to a worker engaging in duties prescribed in Article 36, paragraph (11) of the Labor

Standards Act, when his/her weekly working hours in excess of 40 hours exceeded 100 hours per month,an employer must provide him/her with face-to-face guidance by a physician (Article 66-8-2 of theIndustrial Safety and Health Act) (excluding workers who have received face-to-face guidance within
one month and for whom a physician finds no need for another face-to-face guidance).
[i]

Excess weekly working hours must be calculated at least once a month by specifying a base
date.

[ii]

A physician checks a worker's working situations, accumulation of fatigue, and other mental

and physical statuses (including the aspect of mental health) and provides him/her with necessary
guidance.
[iii]

An employer must hear the opinions of a physician concerning measures necessary for

maintaining the health of a worker who has received face-to-face guidance.
[iv]

An employer must take into account the opinions of a physician, and when he/she finds it

necessary, the employer must take measures appropriately, including changing the location of work,changing the content of the duties, granting paid leave (excluding paid leave under Article 39 of theLabor Standards Act), shortening the working hours, or reducing the frequency of night work, in
consideration of the circumstances of the relevant worker, along with reporting the opinions of thephysician to the health committee, etc.

206

D.

When the time requiring health management for a worker engaging in work under Article 41-2,

paragraph (1) of the Labor Standards Act exceeded 100 hours per month, an employer must provide
him/her with face-to-face guidance by a physician (Article 66-8-4 of the Industrial Safety and HealthAct) (excluding workers who have received face-to-face guidance within one month and for whom aphysician finds no need for another face-to-face guidance).
[i]

Excess weekly working hours must be calculated at least once a month by specifying a base
date.

[ii]

A physician checks a worker's working situations, accumulation of fatigue, and other mental

and physical statuses (including the aspect of mental health) and provides him/her with necessary
guidance.
[iii]

An employer must hear the opinions of a physician concerning measures necessary for

maintaining the health of a worker who has received face-to-face guidance.
[iv]

An employer must take into account the opinions of a physician, and when he/she finds it

necessary, the employer must take measures appropriately, including changing the content of theduties or granting paid leave (excluding paid leave under Article 39 of the Labor Standards Act), in
consideration of the circumstances of the relevant worker, along with reporting the opinions of thephysician to the health committee, etc.
E. An employer must also endeavor to provide face-to-face guidance or take other equivalent measures
for workers falling under [i] or [ii] below (Article 66-9 of the Industrial Safety and Health Act andArticle 52-8 of the Regulation on Industrial Safety and Health).
[i] A worker who is found to have accumulated fatigue due to prolonged work (when his/her weekly
working hours in excess of 40 hours exceeded 80 hours per month) or who has some health concerns(in response to a request of the worker)[ii]

A worker falling under the criteria individually specified by the workplace- Examples of criteria individually specified by the workplace • Provide face-to-face guidance to all workers whose weekly working hours in excess of 40 hours
exceed 80 hours per month• Provide face-to-face guidance to workers whose weekly working hours in excess of 40 hours exceed
45 hours per month for whom an industrial physician finds a need for face-to-face guidance• Submit information on the working environment and working hours, etc. of workers whose weekly
working hours in excess of 40 hours exceed 45 hours per month to an industrial physician, fromwhom the employer receives advice and guidance
Please refer to the Public Notice titled "Comprehensive Measures for Preventing Health
Impairment due to Overwork" (Kihatsu No.0317008 of March 17, 2006 (revised by No. 11 of Kihatsu
No.0401 and No. 4 of Kokinhatsu No.0401 of April 1, 2020)).

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Comprehensive Measures for Preventing Health Impairment due to Overwork
1. Purpose
Overwork for long hours is considered to be the most significant contributing factor of workers' accumulated
fatigue and its strong relevance to brain and cardiac diseases has been medically ascertained. It is unacceptablethat workers suffer health impairment due to work. In light of such medical knowledge, it is important to eliminate
overwork for long hours that does not allow workers to recover from fatigue and also take appropriate measures
for workers' health management so that workers do not accumulate fatigue.
The Ministry of Health, Labour and Welfare has promoted required measures based on the Public Notice titled"Comprehensive Measures for Preventing Health Impairment due to Overwork" (hereinafter referred to as the"Former Comprehensive Measures") since February 2002, and based on the Public Notice titled "Concerning
Comprehensive Measures for Preventing Health Impairment due to Overwork" (Kihatsu No. 0317008 dated
March 17, 2006), which was newly established after the abolition of the Former Comprehensive Measures(hereinafter referred to as the "Comprehensive Measures"). However, amid progressing diversification ofworking styles, problems directly linked to workers' lives and daily living, such as increased health impairment
due to prolonged work, had become more and more serious. In response to those problems, the stress checksystem was introduced in December 2015 as primary prevention measures against workers' mental impairment.
Additionally, in order to prevent overwork death, which has been one of the serious social problems, the Act
Promoting Measures to Prevent Death and Injury from Overwork (Act No. 100 of 2014) was enacted by Diet
members and was put into force on November 1, 2014. The Outline on Measures to Prevent Death and Injury
from Overwork, which was compiled based on the Act and was decided at the Cabinet meeting on July 24, 2018,provides for five approaches to be promoted intensively, namely actions by the labor administration agency, etc.,
investigations and research, awareness-raising activities, development of the counseling system, and assistancefor activities of private organizations.
Furthermore, based on the Act on the Arrangement of Related Acts to Promote Work Style Reform (Act No.
71 of 2018), which aims to facilitate correction of long working hours or otherwise promote work style reform,
the Labor Standards Act (Act No. 49 of 1947), Industrial Safety and Health Act (Act No. 57 of 1972), Act on
Special Measures for Improvement of Working Hours Arrangements (Act No. 90 of 1992), etc. were amended
and were enforced on April 1, 2019, except for some provisions. These legal amendments newly imposed
regulations on the upper limits for overtime work with punishments, strengthened requirements to provide faceto-face guidance by physicians to workers working long hours, and introduced the obligation for employers tomake efforts to develop a system to secure an interval between work shifts.
The Comprehensive Measures specify measures to be taken by employers (meaning the Attachment "Measures
to be Taken by Employers for Preventing Health Impairment due to Overwork"; hereinafter the same) based on
the purport of the amendment of the Labor Standards Act, Industrial Safety and Health Act and other Acts, while
taking into account the consistency and compliance with measures based on the Former Comprehensive Measures,
and also compile measures required for the national government, such as dissemination activities and guidance,
etc., for ensuring proper implementation of those specified measures, with the aim of preventing healthimpairment due to overwork.
2. Dissemination of measures, etc. to be taken by employers for preventing health impairment due to overwork
Prefectural Labour Bureaus and Labour Standards Inspection Offices should endeavor to disseminate thedetails of the required measures broadly among employers by setting campaign months, etc. and using leaflets
and other media on various occasions of group guidance, individual guidance, or guidance targeting supervisorsor the like.
For this purpose, related trade associations, the Industrial Health Total Support Center and its regional offices,and Regional Work Style Reform Promotion Support Centers are to be fully utilized.
3. Guidance at Labour Standards Inspection Offices for preventing health impairment due to overwork(1) Guidance on strict observance of the limits on overtime work and work on days off in an agreement under Article
36
A. Upon receiving a notification of an agreement under Article 36 of the Labor Standards Act (hereinafter referred
to as an "agreement under Article 36"), the Labour Standards Inspection Office will strictly provide guidanceas follows.
(A) With regard to an agreement under Article 36 wherein stipulated working hours exceed the upper limitsprescribed in Article 36, paragraph (3) of the Labor Standards Act (hereinafter referred to as the "upper
limits"), the Labour Standards Inspection Office will provide guidance so that the upper limits are to beobserved. In particular, guidance is to be provided by using leaflets, etc. to attract attention to the fact thatcases where an employer may have workers work overtime or on days off in excess of the upper limits must208

be specified as concretely as possible and that ambiguous clauses using such expressions as "due to an
operational necessity" or "under unavoidable circumstances," which may lead to constant long working
hours, may not be accepted.
(B) From the perspective of preventing health impairment due to overwork, guidance is to be provided by using
leaflets, etc. to ensure that when providing for the number of hours for permissible overtime work or workon days off in excess of the upper limits in an agreement under Article 36, efforts should be made to reduce
the excess hours as close to the upper limits as possible, and to minimize the frequency and hours of workon days off.
(C) Even in the case of an agreement under Article 36 in compliance with the extension limits that makes it
possible to have workers work overtime for 45 hours or more per month, guidance is to be provided by using
leaflets, etc. to recommend the relevant company to keep actual hours of overtime work below 45 hours permonth.
(D) In the case of an agreement under Article 36 that makes it possible to have workers work on days off,guidance is to be provided by using leaflets, etc. to recommend the relevant company to minimize days ofholiday work.
B. With regard to an agreement under Article 36 wherein stipulated working hours exceed the upper limits, whenthe Labour Standards Inspection Office heard the circumstances also from a representative of the workers andfound that labor-management deliberations had not been sufficient, the Labour Standards Inspection Officewill also provide necessary guidance to the workers' side, which is the party to the agreement.
(2) Dissemination of information and guidance concerning discretionary work systems
Upon receiving a notification concerning a discretionary work system, the Labour Standards Inspection
Office provides guidance by using leaflets, etc. on the details of the measures to be taken by employers.
(3) Measures for promoting voluntary efforts to improve working hours arrangements, etc.
For workplaces that are found to require improvements, such as the correction of especially long working
hours, based on self-inspection, etc., the Labour Standards Inspection Office will utilize work-life balance
improvement consultants in the efforts to correct long working hours and promote acquisition of annual paid
leave, and will provide explanations on the purport of the work shift interval system to facilitate its introduction.
4. Guidance targeting supervisors for preventing health impairment due to overwork
Guidance is to be provided as follows for workplaces where hours of overtime work and work on days off(when having workers work more than 40 hours per week, excluding rest periods, meaning those excess hours;
hereinafter the same) are highly likely to exceed 45 hours per month or for workers engaging in work under theprovisions of Article 41-2, paragraph (1) of the Labor Standards Act (hereinafter referred to as "workers covered
under the high-level professional system").
(1) Check the status of the appointment and activities of industrial physicians, health officers, health promotersand the status of the establishment and activities of a health committee, etc. and provide necessary guidance(2) Check the status of implementation of medical examinations, hearing of physicians' opinions on medical
examination results, follow-up measures after medical examinations and health guidance, etc. and provide
necessary guidance(3) Check the status of hours of overtime work of all workers including those covered under a discretionary work
system and supervisors (excluding workers covered under the high-level professional system) (meaning themeasures set forth in 5. (2) A. of the Attachment) and also check the status of provision of information on theexcess working hours for workers whose total monthly hours of overtime work and work on days off exceeded
80 hours to an industrial physician and the status of notice given to the relevant workers (meaning the measures
set forth in 5. (2) B. of the Attachment), pursuant to Article 66-8-3 of the Industrial Safety and Health Act, andalso provide guidance to recommend face-to-face guidance, etc. (meaning face-to-face guidance by a physician
and equivalent measures; hereinafter the same) for workers working long hours and measures thereafter(meaning the measures set forth in 5. (2) C. of the Attachment), based on Article 66-8, paragraph (1), Article
66-8-2, paragraph (1) or Article 66-9 of the Industrial Safety and Health Act.
(4) Check the status of the development of procedures, etc. (meaning the measures set forth in 5. (2) D. of the
Attachment) and provide necessary guidance so that the face-to-face guidance, etc. mentioned in (3) is
implemented smoothly(5) Check the measures to ascertain the time requiring health management, pursuant to Article 41-2, paragraph (1),item (iii) of the Labor Standards Act, and provide necessary guidance when face-to-face guidance to workers
covered under the high-level professional system and measures thereafter (meaning the measures set forth in
5. (3) C. of the Attachment) are not implemented based on Article 66-8-4, paragraph (1) or Article 66-9 of theIndustrial Safety and Health Act

209

(6) Check the status of the development of procedures, etc. (meaning the measures set forth in 5. (3) D. of the
Attachment) and provide necessary guidance so that the face-to-face guidance mentioned in (5) is implemented
smoothly(7) Check the status of the measures to secure days off based on Article 41-2, paragraph (1), item (iv) of the Labor
Standards Act, the selective measures based on item (v) of the same paragraph, and the measures to secure
workers' health and welfare based on item (vi) of the same paragraph, and provide necessary guidance whenthese measures are not taken(8) When an employer does not follow the recommendations on the face-to-face guidance, etc. mentioned in (3)or (5) (limited to measures set forth in 5. (2) C. (A) a. or b., (B) b. or c., and 5. (3) C. (A) b. of the Attachment),hear the opinions of a medical advisor in industrial health based on the relevant worker's working environment,
working hours, the frequency and hours of night work, past medical examination and face-to-face guidance
results, and instruct the employer to conduct special medical examinations and provide strict guidance,
pursuant to Article 66, paragraph (4) of the Industrial Safety and Health Act(9) When it is difficult for a workplace with less than 50 regularly employed workers to individually appoint aphysician and provide face-to-face guidance on such grounds as that there are no physicians with specialized
knowledge in the vicinity, inform such workplace of the availability of a regional office of the Occupational
Health Support Center (hereinafter referred to as a "Regional Industrial Health Center")(10) When finding a situation where a test for ascertaining workers' levels of psychological burdens, face-to-faceguidance by a physician for workers with high stress levels and measures thereafter (hearing of the opinionsof the physician and implementation of operational measures based on such opinions) (these measures arecollectively referred to as the "stress check system") have not been carried out, provide guidance to recommend
proper implementation of these measures; On that occasion, provide advice and guidance on the method of
overall mental health measures, including the stress check system, to ensure the implementation of required
measures in light of the circumstances and need of respective workplaces, based on the guidelines forpromoting maintenance of workers' mental health (Public Notice No. 6; 2015 Guidelines for Promoting
Maintenance of Good Health)
For a workplace with less than 50 regularly employed workers, which is obliged to make efforts to introduce
the stress test system, inform such workplace of the availability of subsidies for the stress check systemprovided by the Japan Organization of Occupational Health and Safety and face-to-face guidance by physiciansof a Regional Industrial Health Center.
(11) Provide necessary guidance for curbing prolonged work also in cases other than the above, such as where
overtime work in excess of the upper limits is found
5. Guidance to secure recurrence prevention measures in the event of a work-related disease due to overwork(1) Guidance to secure recurrence prevention measures toward a workplace where a work-related disease due tooverwork occurred
Provide such workplace with guidance to have it investigate the causes of the disease and take measures toprevent recurrence(2) Strict actions including judicial punishments
Take strict actions including judicial punishments toward a workplace where a work-related disease due tooverwork occurred and any violation to labor standard-related laws and regulations is found.

210

(Attachment)
Measures to be Taken by Employers for Preventing Health Impairment due to Overwork
1. Purpose
Overwork for long hours is considered to be the most significant contributing factor of workers' accumulated
fatigue and its strong relevance to brain and cardiac diseases has been medically ascertained. It is unacceptablethat workers suffer health impairment due to work. In light of such medical knowledge, it is important to eliminate
overwork for long hours that does not allow workers to recover from fatigue and also take appropriate measures
for workers' health management so that workers do not accumulate fatigue.
The Ministry of Health, Labour and Welfare has promoted required measures based on the Public Notice titled"Comprehensive Measures for Preventing Health Impairment due to Overwork" (hereinafter referred to as the"Former Comprehensive Measures") since February 2002, and based on the Public Notice titled "Concerning
Comprehensive Measures for Preventing Health Impairment due to Overwork" (Kihatsu No. 0317008 dated
March 17, 2006), which was newly established after the abolition of the Former Comprehensive Measures(hereinafter referred to as the "Comprehensive Measures"). However, amid progressing diversification ofworking styles, problems directly linked to workers' lives and daily living, such as increased health impairment
due to prolonged work, had become more and more serious. In response to those problems, based on the Act on
the Arrangement of Related Acts to Promote Work Style Reform (Act No. 71 of 2018), which aims to facilitate
correction of long working hours or otherwise promote work style reform, the Labor Standards Act (Act No. 49
of 1947 ), Industrial Safety and Health Act (Act No. 57 of 1972 ), Act on Special Measures for Improvement ofWorking Hours Arrangements (Act No. 90 of 1992; hereinafter referred to as the "Improvement of Working
Hours Arrangements Act"), etc. were amended and were enforced on April 1, 2019, except for some provisions.
These legal amendments newly imposed regulations on the upper limits for overtime work with punishments,
strengthened requirements to provide face-to-face guidance by physicians to workers working long hours, andintroduced the obligation for employers to make efforts to develop a system to secure an interval between work
shifts.
In consideration of such circumstances, these measures stipulate measures to be taken by employers as follows
with the aim of preventing workers' health impairment due to overwork.
2. Reduction of hours of overtime work and work on days off(1) Overtime work should be limited to temporary cases, and it is medically ascertained that the longer the hoursof overtime work and work on days off (when having workers work more than 40 hours per week, excluding
rest periods, meaning those excess hours; hereinafter the same) are in excess of 45 hours per month, thestronger the relevance observed between the work and brain and cardiac diseases becomes. Based on thesefacts, when concluding an agreement under Article 36 of the Labor Standards Act (hereinafter referred to as an"agreement under Article 36"), an employer must make the content of the agreement in compliance with the"Guidelines on Matters to Note Regarding Extension of Working Hours and Work on Days Off Specified in an
Agreement Set forth in Article 36, Paragraph (1) of the Labor Standards Act" (Public Notice of the Ministry of
Health, Labour and Welfare No. 323 of 2018), together with a labor union consisting of the majority of theworkers or a person representing the majority of the workers.
It should also be noted that cases where an employer may have workers work overtime or on days off inexcess of the upper limits prescribed in Article 36, paragraph (3) of the Labor Standards Act (hereinafterreferred to as the "upper limits") must be specified as concretely as possible and that ambiguous clauses using
such expressions as "due to an operational necessity" or "under unavoidable circumstances," which may leadto constant long working hours, may not be accepted. Additionally, efforts should be made to reduce the numberof hours for permissible overtime work or work on days off in excess of the upper limits in an agreement as
close to the upper limits as possible.
Furthermore, when an agreement makes it possible to have workers work overtime for 45 hours or more permonth, an employer should endeavor to keep actual hours of overtime work below 45 hours per month.
An employer should also endeavor to reduce days of holiday work.
(2) Based on the "Guidelines Concerning Measures to be Taken for Properly Ascertaining Working Hours"(Established on January 20, 2017), an employer should properly ascertain its workers' working hours.
(3) With regard to all workers including workers working under a discretionary work system and workers listed in
the items of Article 41 of the Labor Standards Act (hereinafter referred to as "supervisors, etc.") but excluding
workers engaging in work under Article 41-2, paragraph (1) of the Labor Standards Act (hereinafter referred
to as "workers covered under the high-level professional system"), an employer should be aware of its
responsibility to secure the health of workers by ascertaining the status of their working hours, based on Article
66-8-3 of the Industrial Safety and Health Act, and providing face-to-face guidance by a physician, based on211Article 66-8, paragraph (1) or Article 66-8-2, paragraph (1) of the same Act, and endeavor to take measures tocall their attention to avoid overwork.
(4) With regard to workers covered under the high-level professional system, an employer should ascertain thetime requiring health management under Article 41-2, paragraph (1), item (iii) of the Labor Standards Act, andtake measures to secure days off under item (iv) of the same paragraph (hereinafter referred to as "measures tosecure days off"), selective measures under item (v) of the same paragraph (hereinafter referred to as "selective
measures"), and measures to secure workers' health and welfare under item (vi) of the same paragraph(hereinafter referred to as "measures to secure workers' health and welfare").
3. Promotion of workers' acquisition of annual paid leave
An employer should have workers surely take annual paid leave for five days per year by designating thetimings, based on Article 39, paragraph (7) of the Labor Standards Act, and should promote workers' acquisitionof annual paid leave by such means as developing a workplace environment to enable workers to easily take aleave and utilizing a method of systematic granting of annual paid leave, based on paragraph (6) of the same
Article.
4. Improvement of working hours arrangements
The Guidelines on the Improvement of Working Hours Arrangements (Public Notice of the Ministry of Health,Labour and Welfare No.108 of 2008; hereinafter referred to as the "Improvement Guidelines") based on Article
4, paragraph (1) of the Improvement of Working Hours Arrangements Act stipulate matters necessary for
employers and employer associations to properly make improvements in working hours arrangements, etc.
(meaning making improvements in matters concerning working hours, the number of days off, timing of granting
annual paid leave, frequency of night work, interval hours between the finishing time and the next starting time,and other working hour-related matters in response to diversifying working styles, while giving consideration toworkers' health and personal lives). The Improvement Guidelines were amended accompanying the enforcementof the Act on the Arrangement of Related Acts to Promote Work Style Reform, and from the perspective ofpreventing health impairment due to overwork, an employer is required to make efforts to take necessary
measures, while keeping in mind the Improvement of Working Hours Arrangements Act and the Improvement
Guidelines.
In particular, the work shift interval system, which is newly prescribed as an obligation for employers to makeefforts therefor in the Improvement of Working Hours Arrangements Act, is for securing workers' private hours
and sleep hours and is expected to contribute to preventing health impairment due to overwork. An employer
should endeavor to introduce the system into its workplaces.
5. Securing of measures for workers' health management(1) Development of a health management system and implementation of medical examinations
A. Development of a health management system(A) Based on the Industrial Safety and Health Act, an employer is required to develop a health management
system by appointing industrial physicians, health officers, health promoters, etc. to have them appropriately
fulfil duties concerning health management in respective workplaces.
In the case of a workplace with less than 50 regularly employed workers, an employer should utilize aregional office of the Occupational Health Support Center (hereinafter referred to as a "Regional Industrial
Health Center").
(B) Based on Article 13 of the Industrial Safety and Health Act, etc., an employer should provide the following
information to industrial physicians. In the case of a workplace with less than 50 regularly employed workers
where an employer has appointed a physician or public health nurse (hereinafter referred to as a "physician,etc.") who has medical knowledge necessary for managing workers' health, based on Article 13-2 of thesame Act, the employer should make efforts to provide the following information to a physician, etc.
a. Information on the details of the measures that the employer has already taken after medical examinations,the measures after face-to-face guidance for workers working long hours or workers covered under thehigh-level professional system, or the measures that the employer has taken or intends to take after faceto-face guidance based on the results of the test for ascertaining workers' levels of psychological burdens(when the employer does not take these measures, that fact and the reasons therefor)b. Information on names of the workers whose hours of overtime work and work on days off exceeded 80
hours per month and on the relevant excess working hours of such workers, or when the time requiring
health management (meaning the time totaling the hours during which a worker was in the workplace andthe hours during which a worker worked outside the workplace pursuant to the provisions of Article 412, paragraph (1), item (iii) of the Labor Standards Act; hereinafter the same) exceeded 40 hours per
week, information on names of the workers covered under the high-level professional system whose212

excess working hours exceeded 80 hours per month and on the relevant excess working hours of such
workersc. In addition to the information mentioned in a. and b. above, information on workers' duties, such as
working environment, working hours, working mode, workloads, the frequency and hours of night work,that the industrial physician finds necessary for properly managing their health(C) Based on Article 13 of the Industrial Safety and Health Act, etc., an employer who received any
recommendations from an industrial physician must report the details of the recommendations and measuresthat the employer has taken or intends to take based on the recommendations, or when the employer does
not take any measures, that fact and the reasons therefor, to a health committee or a safety and healthcommittee (hereinafter referred to as a "health committee, etc.") without delay after receiving therecommendations.
(D) Based on Article 13-3 of the Industrial Safety and Health Act, etc., an employer should develop a necessary
system as follows so that an industrial physician, etc. can receive health consultation from workers and makeresponses appropriately.
a. An employer should disseminate information among workers with regard to the concrete details ofservices offered by an industrial physician, the method of making a request for health consultation with
the industrial physician (including available dates and places for consultation), and the method employedby the industrial physician for handling information on workers' mental and physical conditions.
b. An employer who has appointed a physician, etc. should endeavor to disseminate information among
workers with regard to the concrete details of services offered by a physician, etc., the method of making
a request for health consultation with the physician, etc. (including available dates and places for
consultation), and the method employed by the physician, etc. for handling information on workers'
mental and physical conditions.
(E)
Investigations and deliberations by a health committee, etc.
Based on Article 18 of the Industrial Safety and Health Act, etc., an employer should hold a healthcommittee, etc. at least once a month.
The health committee, etc. should investigate and deliberate matters pertaining to face-to-face guidance
for workers working long hours, etc. as listed below and on mental health measures for workers.
In the case of a workplace with less than 50 regularly employed workers, an employer should make efforts
to give due consideration to the opinions of workers by such means as preparing opportunities to hear theopinions of related workers.
< Matters pertaining to face-to-face guidance, etc. (meaning face-to-face guidance by a physician andequivalent measures; hereinafter the same) for workers working long hours, etc. >(For workers other than those covered under the high-level professional system)a. Matters pertaining to the ascertaining of working hours of all workers including those covered under adiscretionary work system and supervisors, etc.
b. Matters pertaining to the method and system of providing face-to-face guidance, etc.
c. Matters pertaining to the development of an environment to ensure that requests for face-to-faceguidance, etc. are made appropriately
d. Matters pertaining to measures to prevent disadvantageous treatment of workers who make a request
for face-to-face guidance, etc.
e. Matters pertaining to the criteria for the implementation of necessary measures to be established inworkplaces when providing face-to-face guidance, etc.
f. Matters pertaining to the dissemination among workers of measures for preventing health impairment
due to prolonged work to be taken in the workplace(For workers covered under the high-level professional system (excluding the case where a committeeprescribed in Article 41-2, paragraph (1) of the Labor Standards Act (hereinafter referred to as a "labormanagement committee") conducts investigations and deliberations))
g. Matters pertaining to the ascertaining of the time requiring health management
h. Matters pertaining to the method and system of providing face-to-face guidance
i. Matters pertaining to the development of an environment to ensure that requests for face-to-faceguidance are made appropriately
j. Matters pertaining to measures to prevent disadvantageous treatment of workers who make a request
for face-to-face guidance
k. Matters pertaining to measures to secure days off, selective measures, and measures to secure workers'
health and welfare< Matters pertaining to mental health measures >213

a. The following matters to be investigated and deliberated by a health committee, etc. as suggested in theguidelines for promoting maintenance of workers' mental health (Public Notice No. 6; 2015 Guidelines
for Promoting Maintenance of Good Health; hereinafter referred to as the "Mental Health Guidelines")(a) Matters pertaining to the presentation of an employer's intention to actively promote mental
healthcare(b) Matters pertaining to the formulation of a mental fitness plan(c) Matters pertaining to the development of a system to promote mental fitness(d) Matters pertaining to the ascertaining of problems in the workplace and implementation of mental
healthcare(e) Matters pertaining to the securing of personnel necessary for implementing mental healthcare andthe utilization of sources outside the workplace(f) Matters pertaining to the protection of workers' health information(g) Matters pertaining to the evaluation of the implementation status of a mental fitness plan and thereview of a plan(h) Other matters pertaining to measures necessary for promoting workers' mental fitness
b. The following matters to be investigated and deliberated by a health committee, etc. as suggested in theguidelines on the implementation of the test for ascertaining workers' levels of psychological burdens
and face-to-face guidance and on measures to be taken by employers based on the results of face-toface guidance (Public Notice No. 3; Guidelines on the Test for Ascertaining Workers' Levels of
Psychological Burdens, dated August 22, 2018; hereinafter referred to as the "Stress Check
Guidelines")(a) Method of disseminating the purpose of the stress check system(b) System for implementing the stress check system(c) Method of implementing the stress check system(d) Method of compilation and analysis of the results of a stress check by group(e) Handling of information as to whether workers received a stress check or not(f) Method of preserving records of the results of a stress check(g) Purpose and method of using the results of a stress check, face-to-face guidance, and compilation
and analysis of results by group(h) Methods of disclosing, correcting, adding and deleting information on a stress check, face-to-faceguidance, and compilation and analysis of results by group(i) Method of processing complaints on the handling of information on a stress check, face-to-faceguidance, and compilation and analysis of results by group(j) Workers' right to decide whether or not to receive a stress check(k) Prevention of disadvantageous treatment of workers< Other matters >a. The matters pertaining to rules on the handling of information on workers' mental and physicalconditions to be decided by each workplace, as follows, that are to be investigated and deliberated bya health committee, etc. as suggested in the guidelines on measures to be taken by employers for
ensuring proper handling of information on workers' mental and physical conditions (Public Notice No.
1, Guidelines on Proper Handling of Information on Workers' Mental and Physical Conditions, dated
September 7, 2018; hereinafter referred to as the "Guidelines on Proper Handling of Health
Information")(a)Purpose and method of handling information on mental and physical conditions(b) Personnel who handle information on mental and physical conditions and the authority vested thereto,and the scope of information on mental and physical conditions to be handled(c) Method of informing of the purpose of handling information on mental and physical conditions andmethod of obtaining consent of workers(d) Method of properly managing information on mental and physical conditions(e) Methods of disclosing, correcting (including addition and deletion of information), and suspending
the use of (including deletion and suspension of information provision to a third party) information
on mental and physical conditions(f) Method of providing information on mental and physical conditions to a third party(g) Matters pertaining to succession of information on mental and physical conditions upon businesssuccession and organizational change(h) Method of processing complaints on the handling of information on mental and physical conditions(i) Method of disseminating information on handling rules among workers
B. Implementation of medical examinations(A)
Implementation of medical examinations

214

Based on Article 66 to Article 66-7 of the Industrial Safety and Health Act, an employer should surely
conduct medical examinations, hear the opinions of physicians on medical examination results, and takefollow-up measures after medical examinations and provide health guidance, etc. In particular, it should be
noted that medical examinations are required once within every six months for workers regularly engaging
in work including night work. Upon hearing the opinions of physicians, it is appropriate for an employer toprovide information, such as workers' working hours.
(B) Utilization of a voluntary medical examination system
An employer should make efforts to disseminate information about a voluntary medical examination
system targeting workers engaging in night work, based on Article 66-2 of the Industrial Safety and Health
Act, and a follow-up medical examination benefits system targeting workers who were diagnosed as having
abnormalities in blood pressure or other examination items, based on Article 26 of the Industrial Accident
Compensation Insurance Act (Act No. 50 of 1947). It should be noted that an employer who has received
the submission of medical examination results from its worker under these systems also needs to take followup measures based on Article 66-5 of the Industrial Safety and Health Act.
C. Health education, etc.
Article 69 of the Industrial Safety and Health Act requires an employer to take measures for promoting andmaintaining workers' health continuously in a planned manner.
(2) Face-to-face guidance, etc. targeting workers who engaged in overtime work for long hours or worked on daysoff (excluding workers covered under the high-level professional system)
A. Ascertaining of working hours
Based on Article 66-8-3 of the Industrial Safety and Health Act, an employer should ascertain each worker's
working hours based on an objective means, such as records on a time card, hours of having used a PC or otherelectronic computational machine (hours from login time to logout time) or by any other appropriate means.
B. Provision of information on working hours to industrial physicians and workers
An employer should provide an industrial physician with information on names of the workers whose hoursof overtime work and work on days off exceeded 80 hours per month and on the relevant excess working hours
of such workers, and also provide information on the relevant excess working hours to those workers.
From the perspective of encouraging workers to ascertain their own working hours and personally control
their health, when a worker whose hours of overtime work and work on days off do not exceed 80 hours permonth requests disclosure of information on working hours, an employer should preferably respond to such
request.
C. Provision of face-to-face guidance, etc.
(A) Based on Article 66-8 or Article 66-9 of the Industrial Safety and Health Act, an employer should provide
face-to-face guidance, etc. as follows in accordance with the relevant worker's hours of overtime work andwork on days off.
a. Surely provide face-to-face guidance by a physician for workers whose hours of overtime work and workon days off exceed 80 hours per month and who made a request
b. Endeavor to provide face-to-face guidance, etc. for workers whose hours of overtime work and work ondays off exceed 80 hours per month (excluding those falling under a. above) even if they did not make arequestc. Preferably take measures such as face-to-face guidance, etc. for workers whose hours of overtime work
and work on days off exceed 45 hours per month and for whom the need to consider their health is found(B) Based on Article 66-8, Article 66-8-2, or Article 66-9 of the Industrial Safety and Health Act, with regard toworkers engaging in the work prescribed in Article 36, paragraph (11) of the Labor Standards Act(hereinafter referred to as "workers engaging in research and development"), an employer should provide
face-to-face guidance, etc. as follows in accordance with their hours of overtime work and work on days off.
a. Surely provide face-to-face guidance by a physician for workers engaging in research and development
whose hours of overtime work and work on days off exceed 100 hours per month even if they did not
make a request
b. Surely provide face-to-face guidance by a physician for workers engaging in research and development
whose hours of overtime work and work on days off exceed 80 hours but do not exceed 100 hours permonth and who made a request
c. Endeavor to provide face-to-face guidance, etc. for workers engaging in research and development whose
hours of overtime work and work on days off exceed 80 hours but do not exceed 100 hours per month(excluding those falling under b. above) even if they did not make a request
d. Preferably take measures such as face-to-face guidance, etc. for workers engaging in research anddevelopment whose hours of overtime work and work on days off exceed 45 hours per month and forwhom the need to consider their health is found215

(C) Based on Article 66-8, paragraph (1), Article 66-8-2, paragraph (1), or Article 66-9 of the Industrial Safety
and Health Act, an employer should take follow-up measures after face-to-face guidance, etc. as follows.
a. When providing face-to-face guidance by a physician as mentioned in (A) a. and (B) a. or b. above, hear
the opinions of the physician, without delay, regarding measures necessary for maintaining the relevant
worker's health based on the results of the guidance; In light of those opinions, take appropriate followup measures, if found necessary; Appropriate follow-up measures are as follows:
In a case mentioned in (A) a. or (B) b. above: change of workplaces, shift of work, shortening ofworking hours and reduction of the frequency of night work, etc.
In a case mentioned in (B) a. above: change of workplaces, change of duties, granting of annual paid
leave, shortening of working hours and reduction of the frequency of night work, etc.
When hearing the opinions of the physician, the employer should provide information on the relevant
worker's working hours, etc. (see 5. (1) A. (B) above)b. When providing face-to-face guidance, etc. as mentioned in (A) b. or c. and (B) c. or d. above, endeavor
to take measures equivalent to those described in (C) a. above, "In a case mentioned in (A) a. or (B) b.
above"c. When any disorder is found in the relevant worker's mental health as a result of the face-to-face guidance,
etc., make responses by seeking advice from the physician or industrial physician, etc. who conducted
face-to-face guidance, in collaboration with a psychiatrist, etc. as needed
D. Development of procedures for providing face-to-face guidance, etc.
(A) In order to appropriately provide the face-to-face guidance, etc. mentioned in C. above, an employer should
investigate and deliberate the matters listed in a. to f. of 5. (1) (E) < Matters pertaining to face-to-faceguidance, etc. for workers working long hours, etc. > above at a health committee, etc. and take necessary
measures based on the results of those investigations and deliberations.
(B) When providing the face-to-face guidance mentioned in C. (A) a. or (B) b. above, an employer should takenecessary measures, while including the following in the matters pertaining to the implementation method
and system, and endeavor to disseminate them among workers from the perspective of enabling them tomake requests easily.
a. Preparation of a form for making a request
b. Establishment of an office to accept requests
E. Responses to be made by workplaces with less than 50 regularly employed workers
Workplaces with less than 50 regularly employed workers also need to take measures as mentioned in (2) A.
to D. above, but for provision of the face-to-face guidance, etc. mentioned in C. above, if it is difficult toindividually appoint a physician and provide face-to-face guidance on such grounds as that there are no
physicians with specialized knowledge in the vicinity, a Regional Industrial Health Center should be utilized.
Additionally, when developing procedures as mentioned in D. above, an employer of a workplace with lessthan 50 regularly employed workers should endeavor to utilize opportunities to hear the opinions of related
workers prepared based on the provisions of Article 23-2 of the Regulation on Industrial Safety and Health(Order of the Ministry of Labour No.32 of 1972 ).
Face-to-face guidance by a Regional Industrial Health Center received by a worker as instructed by his/her
employer is deemed to fall under face-to-face guidance by a physician designated by the employer prescribedin Article 66-8, paragraph (2) of the Industrial Safety and Health Act (including the case where applied mutatis
mutandis pursuant to Article 66-8-2, paragraph (2) of the same Act). In this case, the employer must submit adocument stating the relevant worker's working status (for example, the total working hours, hours of overtime
work and work on days off, work content, etc. during the last one month) to the physician and record the resultsof the face-to-face guidance and preserve that record based on Article 52-6 of the Regulation on Industrial
Safety and Health.
(3) Face-to-face guidance, etc. targeting workers covered under the high-level professional system
A. Ascertaining of the time requiring health management
An employer should ascertain each worker's working hours based on an objective means, such as records ona time card, hours of having used a PC or other electronic computational machine.
B. Provision of information on the time requiring health management to industrial physicians and disclosure of
the time requiring health management to relevant workers
With regard to workers covered under the high-level professional system whose time requiring healthmanagement exceeded 40 hours per week, an employer should provide an industrial physician with information
on names of the workers for whom those excess hours exceeded 80 hours per month and on the relevant excess
working hours of such workers.
When a worker covered under the high-level professional system requests the disclosure of a record of
his/her time requiring health management, an employer should disclose the relevant record to such worker.
C. Provision of face-to-face guidance216

(A) Based on Article 66-8-4, paragraph (1) or Article 66-9 of the Industrial Safety and Health Act, an employer
should provide face-to-face guidance as follows in accordance with the time requiring health managementof the relevant worker covered under the high-level professional system.
a. Surely provide face-to-face guidance by a physician for workers covered under the high-level professional
system whose time requiring health management exceed 40 hours per week and for whom those excess
hours exceed 100 hours per monthb. Endeavor to provide face-to-face guidance by a physician for workers covered under the high-levelprofessional system whose time requiring health management exceeds 40 hours per week and for whomthose excess hours do not exceed 100 hours per month and who made a request(B) Based on Article 66-8-4, paragraph (1) or Article 66-9 of the Industrial Safety and Health Act, an employer
should take follow-up measures after face-to-face guidance, etc. as follows.
a. When providing face-to-face guidance by a physician as mentioned in (A) a. above, hear the opinions of
the physician, without delay, regarding measures necessary for maintaining the health of the relevant
worker covered under the high-level professional system based on the results of the guidance; in light of
those opinions, take appropriate follow-up measures, such as change of duties, granting of annual paid
leave, and consideration for reducing the time requiring health management, if found necessaryb. When providing face-to-face guidance as mentioned in (A) b. above, endeavor to take measures equivalent
to those described in (A) a. abovec. When any disorder is found in the mental health of the relevant worker covered under the high-levelprofessional system as a result of the face-to-face guidance, make responses by seeking advice from thephysician or industrial physician, etc. who conducted face-to-face guidance, in collaboration with a
psychiatrist, etc. as needed
D. Development of procedures for providing face-to-face guidance(A) In order to appropriately provide the face-to-face guidance mentioned in C. above, an employer should
investigate and deliberate the matters listed in g. to k. of 5. (1) (E) < Matters pertaining to face-to-faceguidance, etc. for workers working long hours, etc. > above at a health committee, etc. (excluding the casewhere a labor-management committee conducts investigations and deliberations) and take necessary
measures based on the results of those investigations and deliberations.
(B) When providing the face-to-face guidance mentioned in C. (A) b. above, an employer should take necessary
measures, while including the following in the matters pertaining to the implementation method and system,and endeavor to disseminate them among workers covered under the high-level professional system fromthe perspective of enabling them to make requests easily.
a. Preparation of a form for making a request
b. Establishment of an office to accept requests
E. Responses to be made by workplaces with less than 50 regularly employed workers
Workplaces with less than 50 regularly employed workers also need to take measures as mentioned in A. to
D. above, but for provision of the face-to-face guidance mentioned in C. above, if it is difficult to individually
appoint a physician and provide face-to-face guidance, a Regional Industrial Health Center should be utilized.
Additionally, when developing procedures as mentioned in D. above, an employer of a workplace with lessthan 50 regularly employed workers should endeavor to utilize opportunities to hear the opinions of related
workers prepared based on the provisions of Article 23-2 of the Regulation on Industrial Safety and Health(excluding the case where a labor-management committee conducts investigations and deliberations).
Face-to-face guidance by a Regional Industrial Health Center received by a worker covered under the highlevel professional system as instructed by his/her employer is deemed to fall under face-to-face guidance by aphysician designated by the employer prescribed in Article 66-8, paragraph (2) of the Industrial Safety and
Health Act. In this case, the employer must submit a document stating the relevant worker's working status (forexample, the time requiring health management, the monthly excess hours when the time requiring healthmanagement exceeded 40 hours per week, or work content, etc. during the last one month) to the physician
and record the results of the face-to-face guidance and preserve that record based on Article 52-6 of theRegulation on Industrial Safety and Health as applied mutatis mutandis pursuant to Article 52-7-4 of the same
Regulation.
F. Selective measures and measures to secure workers' health and welfare
An employer should implement the measures to secure days off, selective measures, and measures to secure
workers' health and welfare for workers covered under the high-level professional system based on the content
of a labor-management committee resolution.
(4) Implementation of mental health measures
A. Implementation of mental health measures
Based on a mental fitness plan formulated through investigations and deliberations by a health committee,
etc. in line with the Mental Health Guidelines, an employer should take measures for promoting workers'

217mental fitness, while taking into account the characteristics of mental health problems and giving due
consideration to the protection of workers' personal information including health information and the respectof workers' intentions.
Specifically, an employer should make efforts for primary prevention to prevent workers from suffering
mental health disorders by utilizing the stress check system and improving the working environment, etc.,
secondary prevention to early detect workers' mental health disorders and make appropriate actions, andtertiary prevention to offer support to workers who once suffered mental health disorders for their return towork.
Additionally, an employer should endeavor to provide training and necessary information and to ensure
continuous and systematic implementation of four types of mental healthcare activities: self-care, line care(healthcare by supervisors, etc.), professional care (healthcare by professional staff within the workplace), andoutside care (healthcare utilizing sources outside the workplace).
B. Implementation of a stress check
Based on Article 66-10 of the Industrial Safety and Health Act, an employer is obliged to conduct a stresscheck at least once a year for all regularly employed workers, provide face-to-face guidance by a physician toworkers with high stress levels who made a request, hear the opinions of a physician on operational measures,and take necessary measures in consideration of those opinions (these measures are collectively referred to as
the "stress check system") (for workplaces with less than 50 regularly employed workers, employers are
required to make efforts).
Therefore, based on the Stress Check Guidelines, an employer must implement the stress check system in
an appropriate manner.
There may be cases where a mental health disorder due to overwork is found as a result of a stress checkand certain operational measures come to be required. Accordingly, an employer should not only provide faceto-face guidance, etc. targeting workers working long hours as mentioned in (2) or (3) above, but also takeother measures to prevent health impairment due to overwork by fully utilizing the results of face-to-faceguidance for workers with high stress levels and the opinions of a physician concerning operational measures
based on those results.
(5) Measures to be taken in the event of a work-related disease due to overwork
When any work-related disease due to overwork has occurred, an employer should investigate the causes ofthe disease and thoroughly take measures to prevent recurrence as follows, by seeking advice from an industrial
physician, etc., in collaboration with an industrial health consultant as needed.
A. Investigations of causes
Investigate causes from various perspectives with regard to the statuses of management of working hours,
irregularity in working hours and patterns, and binding hours, the status of business trips, the statuses of shift
work and night work, the working environment, mental strain during work, and the results of medical
examinations and face-to-face guidance, etc.
B. Prevention of recurrence
Based on the results of the investigations mentioned in A. above, and in light of the investigations anddeliberations by the health committee, etc., draw up recurrence prevention measures in accordance with themeasures mentioned in 2. to 5. (3) above and properly carry out those measures(6) Handling of information on workers' mental and physical conditions
Based on the Guidelines on Proper Handling of Health Information under the provisions of Article 104,
paragraph (3) of the Industrial Safety and Health Act, an employer should establish information handling rules
for the workplace and properly manage information on workers' mental and physical conditions.

218

3. Stress Check
A stress check is a simple test to have workers answer questionnaires (closed-ended questions) on stress andcompile and analyze answers to enable workers to understand their stress levels.
From December 2015, employers who regularly employ 50 or more workers are required to conduct a stresscheck once every year for all workers (excluding workers whose contract terms are shorter than one year andpart-time workers who work less than three-quarters of regular working hours of ordinary workers) (Article
66-10 of the Industrial Safety and Health Act).
This is a mechanism to prevent workers' mental health disorders in advance by encouraging workers who
understand their stress levels through a stress check to voluntarily pay attention to not build up stress, or receive
face-to-face guidance by a physician to seek advice or ask the company to reduce workload and improve theworkplace environment when their stress levels are high.
Procedures undertaken under a stress check system
Preparation (establish in-house rules such as implementation methods)*IT systems may be utilized.

Evaluation of stress levels/Judgment on the need of face-to-face guidance by a physician
Notification of the results to individual workers

Face-to face guidance (for workers
with high stress levels)

Compilation of individuals'
results by group of a certain size
for analysis

Individuals' requests for face-to-face guidance

Improvement of the workplaceenvironment

Face-to-face guidance by a physician
Hearing of the physician's opinions on the needand the content of required measures
Measures concerning workers' working patterns

Prevent mental health disorders in advance!
Implementation status of stress checks and face-to-face guidance must be reported to the
Labour Standard Inspection Office every year using the prescribed form.

219

Group analysis*Obligation to make efforts

Stress check (for all workers)

Delivery of questionnaires/Filling inLabor insurance
I. Labor Insurance (Industrial Accident Insurance and Employment
Insurance)
1. Application of Labor Insurance
As long as an employer employs at least one worker, the business falls under the labor insurance
requirement. An employer who conducts a business covered by labor insurance must submit a notice of
establishment of an insurance relationship (in the prescribed form) to the Director-General of the competentLabour Standards Inspection Office or the director of the competent public employment security office within
10 days from the day following the day on which the insurance relationship is established (generally the dayon which an employer first employed a worker).
As procedures relating to employment insurance, an employer must submit a notice of installation of an
employment insurance-applied business office (within 10 days from the day following the day of installation)
and a notice of acquisition of the employment insurance qualification (by the 10th of the following month),
together with a copy of its notice of establishment of an insurance relationship, to the director of the competentpublic employment security office.
If an insurance relationship is established in the middle of a fiscal year, an employer must pay an estimatedinsurance premium to the competent Prefectural Labour Bureau, the competent Labour Standards Inspection
Office or the Bank of Japan (acting branches, etc.) or other financial institution (a bank or postal office) witha declaration of the estimated insurance premium (in the prescribed form) within 50 days from the day
following the day on which the insurance relationship is established.

2. Insurance Premium Rates
Premium rates of industrial accident insurance are specified for each business type. Concrete premium
rates are available on the following websites of the Ministry of Health, Labour and Welfare.
• https://www.mhlw.go.jp/bunya/roudoukijun/roudouhokenpoint/index.html• https://www.mhlw.go.jp/bunya/roudoukijun/roudouhokenpoint/dl/rousaihokenritu_h30.pdf The details of
the premium rates of employment insurance are available on the following website of the Ministry of Health,Labour and Welfare.
• http://www.mhlw.go.jp/stf/seisakunitsuite/bunya/0000108634.html Labor insurance premiums arecalculated by multiplying the wages actually paid by the prescribed rates.
Return and payment of premiums for industrial accident insurance and employment insurance are integrally
administered, except for some types of business, and procedures do not need to be undertaken separately.

3. Renewal for Another Fiscal YearAn employer of a labor insurance-applied business must submit a declaration of the estimated/final
insurance premium to the Bank of Japan (acting branches, etc.), financial institutions (banks or postal offices),the competent Labour Standards Inspection Office or the competent Prefectural Labour Bureau during a period
from June 1 to July 10 every year and settle up the previous fiscal year's premium and pay the estimatedpremium for the current fiscal year. When the estimated insurance premium exceeds 400,000 yen, it may be
paid in three installments.

4. Use of a Public Consultant on Social and Labor Insurance or a Labor Insurance
Affairs Association
It may be often burdensome for SMEs and small businesses to handle labor insurance-related affairs, suchas procedures for enrolling in labor insurance or filing returns and paying insurance premiums and otherprocedures relating to the insured of employment insurance. In such case, they can use a public consultant onsocial and labor insurance, a title which is a national qualification, or a labor insurance affairs association.

220

Under the labor insurance affairs association system, an employers' organization approved as a labor
insurance affairs association by the Minister of Health, Labour and Welfare receives entrustment from its
member employers and files returns and pays labor insurance premiums and submits various notices on theirbehalf. Many business cooperatives, chambers of commerce and other employers' organizations are approved
as labor insurance affairs associations.
However, procedures concerning insurance benefits cannot be entrusted to labor insurance affairs
associations. These procedures need to be entrusted to public consultants on social and labor insurance or beindividually undertaken by each workplace.

5. Workers to be Insured(1) Industrial accident insurance
Industrial accident insurance applies to all workers working for businesses covered by industrial
accident insurance, irrespective of being full-time workers or part-time workers with any titles.
If a worker suffers an injury or a disease or dies due to any accident while performing duties or during
travel to or from work, insurance benefits under the industrial accident compensation insurance scheme
are provided to the worker or his/her bereaved family. In such a case, even if the employer fails to complete
the procedure for establishing an insurance relationship for industrial accident compensation insurance,
the worker can still receive insurance benefits, but the employer may be required to bear the costs
necessary for the insurance benefits in full or in part.
A small and medium-sized business or sole proprietor that has specially enrolled in industrial accident
insurance via a labor insurance affairs association or a special enrollment organization is also covered
under compensation. The details are available on the following website of the Ministry of Health, Labourand Welfare.
• http://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/roudoukijun/rousai/kanyu.html(2) Employment insurance
Workers employed by a workplace covered by employment insurance who satisfy both of the following
requirements are all insured, in principle, irrespective of being full-time workers, junior employees, orpart-time workers with any titles.
[i] The person is expected to be employed for 31 days or longer.
[ii] The person's regular weekly working hours are 20 hours or more.
Cases of a contract without a fixed term and also a contract with a fixed term of shorter than 31 days
but expected to be repeatedly renewed for a period of 31 days or longer in consideration of the purposeof employment and circumstances of other workers employed under similar contracts fall under theserequirements.

Daytime students are not covered by employment insurance.
Directors, auditors or other executives are also not covered. However, a company director also
serving as a department manager, etc. who is found to be a worker rather than an executive from theperspective of paid executive compensation, etc. may be covered by employment insurance by filinga notification to Hello Work. In such case, the portion of executive compensation is excluded fromthe coverage of unemployment benefits.

221

6. Types of Insurance Benefits(1) Industrial accident insurance[i] Medical (compensation) benefits

When a worker needs to receive medical
treatment for injury or disease[ii] Absence from work (compensation) benefits
When a worker cannot work and cannot receive
wages due to medical treatment for injury or
disease[iii] Disability (compensation) benefits
When any disability remains after injury or
disease is healed (symptoms have become
fixed)• Disability (compensation) pension:
Disability Grades 1 to 7
• Disability (compensation) lump sum payment: Disability Grades 8 to 14[iv] (Compensation) benefits for surviving family
When a worker died• (Compensation) pension for surviving family: When there is any surviving family who has
maintained his/her livelihood with earnings ofthe deceased• Lump sum (compensation) for surviving family: When there is no surviving family who receives(compensation) pension for surviving family[v] Funeral service fee (Funeral rites benefits)
When a funeral for a dead worker is held[vi] Injury and disease (compensation) pension
When injury or disease is not healed(symptoms have not become fixed) even after
one and a half years after commencing medical
treatment and the level of disability due to theinjury or disease falls under any Injury/DiseaseGrade[vii]Nursing care (compensation) benefits
When a worker receives a disability(compensation) pension or injury and disease(compensation) pension due to a certain
disability and is currently receiving nursingcare[viii] Follow-up medical examination benefits
When a worker is diagnosed as having
abnormalities in certain items relating to brain
and cardiac diseases as a result of the latest
periodical medical examinations conductedbased on the Industrial Safety and Health Act(2) Employment insurance
A. Qualified recipients (Basic allowance)
In order to receive basic allowance, a period of being insured needs to be at least 12 months(containing at least 11 days or at least 80 working hours, the basis for paying wages every month) in
the two years prior to the day of separation from employment, in principle.
A specific qualified recipient (a person who separated from employment due to bankruptcy or
dismissal, etc.) is considered to satisfy the eligibility criteria if his/her period of being insured is at least
6 months (containing at least 11 days or at least 80 working hours, the basis for paying wages every
month) in the one year prior to the day of separation from employment.
Even regarding a person who does not fall under the category of specific qualified recipient andwhose labor contract with a fixed term has not been renewed, if a period of being insured is 6 months
or longer in total in the one year prior to the day of separation from employment, he/she is also
considered to satisfy the eligibility criteria.
B. Benefits for unemployment, etc.
[i]
Job applicant benefits•
Job applicant benefits for generally insured persons- Basic allowance: When a person has become unemployed- Skill acquisition allowance: When a person receives vocational training as instructed by the
director of the competent public employment security office- Lodging allowance: When a person needs to stay at a hotel for receiving the abovementioned
training

222

- Injury and disease allowance: When a person cannot be employed due to injury or disease
after applying for a job•
Job applicant benefits for elderly insured persons (job applicant benefits for the elderly)•
Job applicant benefits for specially insured persons in short-term employment (special lumpsum payment)•
Job applicant benefits for insured day workers (job applicant benefits for day workers)[ii]
Employment promotion benefits• Re-employment allowance
When a qualified recipient has obtained a stablejob, while leaving one-third or more of thenumber of days for which he/she can receive
basic allowance• Retention allowance for employment promotion When a recipient of re-employment allowance is
employed by the relevant employer for six
months or longer and paid wages are lower thanhis/her former wages• Employment allowance
When a qualified recipient has been employed ina form other than regular employment, which is
not eligible for re-employment allowance, whileleaving one-third or more of days (at least 45days) for which he/she can receive basic
allowance• Regular employment preparation allowance
When a person with difficulties in finding jobs,
such as a person with disabilities or a person aged
45 or older covered under a new employment
support plan, has obtained a stable job as
introduced by a public employment security
office, etc. and is found to be surely employed by
the relevant employer continuously for one year
or longer• Moving expenses

When a person has relocated for the purpose ofbeing employed as introduced by the director ofa public employment security office• Financial assistance for job seeking activities
When a person carries out job seeking activities
in a broad area as introduced by the director of apublic employment security office or when aperson uses temporary childcare services for job
seeking activities and job interviews, etc.
[iii] Educational training benefits When a person receives educational training as designated by the
Minister of Health, Labour and Welfare[iv]
Continuous employment benefits[Continuous employment benefits for the elderly]• Basic continuous employment benefits for the elderly When a person 60 years of age or older andunder 65 years of age continues to workwith his/her wages reduced to less than 75%of those at the age of 60• Re-employment benefits for the elderly
When a person who had been receiving
basic allowance (the remaining days forreceiving basic allowance needs to be noless than 100 days) was re-employed after
becoming 60 years old and the wages areless than 75% of the amount of 30 times of223

daily wages that served as the basis for thebasic allowance[Family care leave benefits]• Family care leave benefits

When a worker takes family care leave forthe purpose of taking care of a subject
family member, the amount calculated asfollows is paid during the period of thefamily care leave. A daily wage at the timeof starting leave × Number of days covered
× 67% (for three times up to 93 days in total
for one family member)[v] Child care leave benefits• Child care leave benefits

When a worker takes child care leave forraising a child younger than one year old(until the child becomes one year and six
months old or two years old when the childcannot receive care at a child care center,
etc.; or until the child becomes one year andtwo months old when both parents takechild care leave under the Mom & Dad
Child Care Leave Plus System and theysatisfy certain requirements), and satisfies
certain requirements, the amount calculated
as follows is paid.
* A worker can take child care leave on two
occasions by dividing the leave.
A daily wage at the time of starting leave ×
Number of days covered × 67% (50% fromthe 181th day after starting leave)
When a worker takes parental leave forraising a child by specifying a period of notexceeding 4 weeks (28 days) until the day
following the day on which 8 weeks elapse
from the date of childbirth, and satisfies
certain requirements, the amount calculated
as follows is paid. A daily wage at the timeof starting leave × Number of days (up to 28days) × 67% (The number of days for which
parental leave benefits are paid isaggregated into the 180 days during which
the rate of 67% for the child care leave
benefits applies.)• Parental leave benefits

224

Reference Materials (Forms, etc.)
I. Related to Various Reports, Notifications and Applications
1. Related to the Labor Standards Act
Cases

Required documents

FilersBy when

To wherestarting Director-General of the competent

When intending to manage workers' savings

Notice of agreement on management
Employerof saving

Beforemanagement

When managing workers' savings

Report on the status of management
Employerof savings

By April 30 for the status of Director-General of the competentLabour Standards Office
the previous one year

LabourOfficeStandards

Inspection

When intending to dismiss a worker whose
dismissal is restricted in the event that the Application for approval forcontinuance of the enterprise has been made exemption from restrictions on Employer
impossible by a natural disaster or other dismissal
unavoidable reason

Before dismissal

Director-General of thecompetent Labour Standards
OfficeWhen intending to dismiss a worker without
providing 30 days' advance notice or paying
allowance for dismissal without advance
Application for approval for
notice in the event that the continuance of
exemption from obligation to Employer
the enterprise has been made impossible byprovide advance noticea natural disaster or other unavoidable
reason or due to any causes attributable to
the worker

Before dismissal

Director-General of thecompetent Labour Standards
OfficeWhen intending to set regular working hours
so that weekly working hours do not exceed Notice of agreement on a one-month
Employer
40 hours on average during a certain period variable working hours system
not exceeding 1 month

Beforeadopting
relevant system

theWhen intending to set regular working hours
so that weekly working hours do not exceed Notice of agreement on a one-year
Employer
40 hours on average during a certain period variable working hours system
not exceeding 1 year

Beforeadopting
relevant system

theWhen an employer of a retailer, hotel,
restaurant, or eating and drinking
Notice of agreement on a one-weekestablishment with 29 or less workers where
atypical adjustable working hours Employer
regular weekly working hours do not exceed
system40 hours intends to have workers work up to
10 hours per day

Beforeadopting
relevant system

theWhen intending to have a worker work Application for permission forovertime or on a day off temporarily in the extension of working hours and work
Employer
event of a natural disaster or other on days off due to a natural disaster
unavoidable reason
or other emergency

Director-General of the
Before having a worker
competent Labour Standards
engage in the relevant work
OfficeWhen there is no time to receive the Notice of extension of working hours
abovementioned
permissioninan and work on days off due to a natural Employer
emergency
disaster or other emergency

Afterwards without delay

When having a worker work in excess of the
Notice of agreement on extension of
statutory working hours or on a statutory
Employerworking hours and work on days off
holiday

Director-General of the
Before having a worker
competent Labour Standards
engage in the relevant work
OfficeNotice of agreement on extension of
When deemed working hours outside theworking hours and work on days off
workplace exceed the statutory working
Employer(with agreement on work outside thehours
workplace)Director-General of the
Before having a worker
competent Labour Standards
engage in the relevant work
Office225

Director-General of thecompetent Labour Standards
OfficeDirector-General of thecompetent Labour Standards
OfficeDirector-General of thecompetent Labour Standards
OfficeDirector-General of thecompetent Labour Standards
OfficeCasesRequired documents

FilersBy when

To whereIn the case where a worker engages in workoutside the workplace for the whole or partof his/her working hours and it is difficult to Notice of agreement on work outside
Employer
calculate his/her working hours, when the workplace
deeming that the worker worked for hours asagreed between labor and management

Director-General of the
Before having a worker
competent Labour Standards
engage in the relevant work
OfficeWhen having a worker under a discretionary
work system for professional work engage
in work under agreements [i] that concrete Notice of agreement on a
instructions on work content will not be discretionary work system for Employer
given and [ii] that the worker will be deemed professional work
to have worked for hours as agreed between
labor and management

Director-General of the
Before having a worker
competent Labour Standards
engage in the relevant work
OfficeWhen a labor-management committee made Notice of resolution on aa resolution to introduce a discretionary discretionary work system for Employer
work system for management-related work management-related work

Before having a worker Director-General of the competentengage in the relevant work Labour Standards Office

When a company adopting a discretionary
work system for management-related work Report on a discretionary work
Employermakes periodical reports on the status of system for management-related work
working hours, etc.

Once within every 6 Director-General of themonths after a resolution competent Labour Standards
was made
OfficeWhen a labor-management committee made Notice of resolution of a labora resolution in lieu of an agreement on management committee on overtime Employer
overtime work and work on days off
work and work on days off

Before having a worker Director-General of thework overtime or on a day competent Labour Standards
off
OfficeWhen an employer of an infant home, foster
home, or facility for children with
Application for permission fordisabilities intends to exclude its worker
exclusion from application of the Employer
who lives together with children from theprinciple of free use of rest periods
application of the principle of free use of rest
periods

Director-General of the
Before restricting free use competent Labour Standards
OfficeWhen intending to have a worker engage inApplication for permission formonitoring or intermittent labor and exclude
exclusion of workers engaging in Employer
such worker from the application ofmonitoring or intermittent labor
regulations on working hours, etc.

Director-General of the
Before having a worker
competent Labour Standards
engage in the relevant work
OfficeWhen intending to have a worker engage inintermittent night duty or day duty and Application for permission for
Employerexclude such worker from the application of intermittent night duty or day duty
regulations on working hours, etc.

Director-General of the
Before having a worker
competent Labour Standards
engage in the relevant work
OfficeWhen intending to employ a child (student)
until the end of the fiscal year during which
he/she becomes 15 years old

Application for permission
employment of a childfor
Employer

Director-General of the
Before employing a childcompetent Labour Standards(student)
OfficeApplication for permission for
When intending to have a minor aged under
extension of hours for night work of Employer
18 work until 22:30 on a shift work basis
a minorDirector-General of the
Before having a worker
competent Labour Standards
engage in the relevant work
OfficeWhen intending to construct, relocate orchange an annex dormitory for a business
Notice of construction, relocation
wherein 10 or more regularly employed
Employerand change of an annex dormitory
worker work or for a dangerous or injurious
business

By 14 days before the Director-General of thecommencementof competent Labour Standards
construction
OfficeApplication for certificate by aschool principal

226

CasesRequired documents

FilersBy when

To where

When intending to construct or relocate Notice of construction, relocationan annex dormitory for a construction and change of an annex dormitory Employer
business or change plans therefor
for a construction business

By 14 days before the Director-Generalcommencementof competentconstruction
Standards Officeof theLabourWhen drawing up or altering rules of a Noticeof
establishment
Employerdormitory(alteration) of dormitory rules

Director-General
Before starting to operatecompetenta dormitory
Standards Officeof theLabourWhen a workplace with 10 or more
Noticeofestablishment
regularly employed workers has drawn
Employer(alteration) of rules of employment
up or altered rules of employment

Immediately

Director-Generalcompetent
Standards Officeof theLabourWhen the business has come to becovered under the Labor Standards Act
Report of applicable business(when having started to employ a worker,
irrespective of industry types)

Employer

Without delay

Director-Generalcompetent
Standards Officeof theLabourWhenintendingtoreceivereimbursement of wages unpaid due to Application for approvalbankruptcy

Within 6 months from theRetiredworkerDirector-Generalday following the day ofwhose wages arecompetent
separationfromnot paid
Standards Office
employment

When intending to seek confirmation of
the amount of wages unpaid due to a Application for confirmation
bankruptcy

Within 2 years from theRetiredworkerDirector-Generalday following the day on
whose wages arecompetent
which a bankruptcy was
not paid
Standards Officeadmitted, etc.

Documents to be prepared and preserved at workplaces
Cases

Required documents

FilersBy when

When having employed a worker

Roster of workers

Employer

As soon as a worker is employed

When intending to employ a worker

Notice of working conditions

EmployerAt the time a worker is employed

When having employed a regular worker,
Wage ledger (for regular workers) Employer
irrespective of a full-timer or part-timer

Each time wages are paid

When having employed a day laborer

Each time wages are paid

Wage ledger (for day laborers)

Employer

When a resigning worker has requested acertificate regarding the period of
employment, the type of occupation, the Certificate for separation fromposition in the business, wages, and the employment regarding the reason Employer
reason for separation from employment for dismissal(in the case of dismissal, including thereason for dismissal)

227

Each time a request is receivedof theLabourof theLabour2. Related to the Industrial Safety and Health Act
Cases

Required documents

FilersBy when

To where

Report of appointment of a general
When having appointed a general safety and health manager, safety
Employersafety and health manager
officer, health officer, or industrial
physicianWithout delay

Director-General of thecompetent Labour Standards
OfficeReport of appointment of a generalsafety and health manager, safety
When having appointed a safety officer
Employerofficer, health officer, or industrial
physicianWithout delay

Director-General of thecompetent Labour Standards
OfficeReport of appointment of a generalsafety and health manager, safety
When having appointed a health officer
Employerofficer, health officer, or industrial
physicianWithout delay

Director-General of thecompetent Labour Standards
OfficeReport of appointment of a general
When having appointed an industrial safety and health manager, safety
Employer
physicianofficer, health officer, or industrial
physicianWithout delay

Director-General of thecompetent Labour Standards
OfficeWhen an employer who regularly
Report of the results of periodical
employs 50 or more workers conducted
Employer
medical examinations
medical examinations

Without delay

Director-General of thecompetent Labour Standards
OfficeWhen an employer who regularly Report on results of examination for
employs 50 or more workers conducted ascertaining
thelevelsof Employer
examination, etc. for ascertaining the psychological burdens
levels of psychological burdens

Once within one year

Director-General of thecompetent Labour Standards
OfficeWhen a worker died while working or
Report of a worker's death, injury or
within the workplace or took a leave of
Employerdiseaseabsence from work

Without delay

Director-General of thecompetent Labour Standards
Office* When filing any of the notifications above, support services for preparing documents related to the Industrial Safety and Health
Act are available https://www.chohyo-shien.mhlw.go.jp/

3. Procedures for Labor Insurance(1) Procedures for application of labor insurance and collection of insurance premiums: Continuingbusinesses (including collective fixed-term projects)
Cases

Required documents

FilersWhen newly starting an applicable
Notice of establishment
business or when the current business has
Employerof insurance relationshipcome to fall under an applicable business

By when

To where

Within 10 days fromthe day following
Director-General of the competentthe day of theLabour Standards Inspection
establishment of a Office or director of the competent
new insurance
public employment security office
relationship
For the portion of industrial
accident insurance: the director of
the competent Labour Bureau via

When an employer of a business eligible
Application forfor voluntary application intends to apply
voluntary enrollment
for enrollment in insurance

the competent Labour Standards

Employer

Each occasion

Inspection Office, and for the
portion of employment insurance:
the director of the competentLabour Bureau via the public
employment security officeDeclaration of estimatedinsurance premium,
When declaring and paying the final
estimated increase ininsurance premium for the previous fiscal
insurance premium, or final Employer
year and an estimated insurance premium
insurance premium;for the current fiscal year
Written payment of
insurance premium

228

Financial institutions (head office,branch offices, acting branches,

From June 1 to July
10 every year

and revenue agencies of the Bankof Japan, postal offices), competentLabour Bureau, and competentLabour Standards Inspection
OfficeCasesRequired documents

FilersBy when

To where

When declaring and paying an estimated insurance
premium for an insurance relationship established in
the middle of a fiscal year for the period from the day Declaration of estimatedof establishment of the relationship to the final day of insurance premium, estimatedthat fiscal year,
increase in insurance premium,
Employeror when declaring and paying the final insurance or final insurance premium;premium for an insurance relationship extinguished in Written payment of insurance
the middle of a fiscal year for the period from the first premium
day of that fiscal year to the day of extinguishment of
the relationshipWithin 50 days from the
day following the day ofthe establishment of an
insurance relationship orfrom the day ofextinguishment

Competent Labour Bureau, andcompetent Labour Standards
Inspection Office (for the payment ofan estimated insurance premium or
the additional payment upon
settlement of the final insurance
premium, financial institutions (headoffice, branch offices, acting
branches, and revenue agencies of the
Bank of Japan, postal offices) may beutilized)

When it is expected that an estimate of total wages that
Declaration of estimatedserved as the calculation basis of an estimatedinsurance premium, estimatedinsurance premium will increase by two-fold or moreincrease in insurance premium,and the difference between an estimated insurance
Employeror final insurance premium;premium based on the increased total wages and theWritten payment of insurance
already declared estimated insurance premium ispremium
130,000 yen or more

Within 30 days from the
day following the day on
which a high possibility of
an increase was foundFinancial institutions (head office,branch offices, acting branches, andrevenue agencies of the Bank ofJapan, postal offices), competentLabour Bureau, and competentLabour Standards Inspection Office

Each occasion

For the portion of industrial accident
insurance: the director of thecompetent Labour Bureau via thecompetent Labour Standards
Inspection Office, and for the portionof employment insurance: the directorof the competent Labour Bureau via
the public employment security office

Employer

Each occasion

For the portion of industrial accident
insurance: the director of thecompetent Labour Bureau via theLabour Standards Inspection Officehaving jurisdiction over thedesignated business, and for the
portion of employment insurance: thedirector of the competent Labour
Bureau via the public employment
security office having jurisdiction
over the designated business

When there is any change in the following for abusiness wherein an insurance relationship has been
established
Notice of change in name or[i] Name and address or location of the employer
location[ii] Name of the business[iii] Place of the business[iv] Type of the business

Employer

Director-General of the competentLabour Standards Inspection Office or
director of the competent public
Within 10 days from theemployment security office (in the
day following the day of a case of a change in the address orchangelocation ([i]) or the place of business([iii]), those having the jurisdiction
over those areas after change)

When any excess amount was found in paid insurance
premiums upon settlement, and an employer seeks Request for refund
refund thereof

Employer

When submitting adeclaration of final
insurance premium

Competent Labour Bureau, andcompetent Labour Standards
Inspection Office

When an employer appoints an agent to have that agent
handle all or part of labor insurance-related affairs to Notice of appointment or
be originally handled by the employer or when an dismissal of an agent
employer intends to dismiss such agent

Employer

Each occasion

Director-General of the competentLabour Standards Inspection Office or
director of the competent public
employment security office

When an employer who has voluntarily enrolled in
Application for extinguishment
insurance intends to extinguish the existing insurance
Employerof insurance relationshiprelationship for the relevant business

When an employer of a continuing business seeks Application for collective
collective administration of insurance relationships for approval, addition, or
two or more businesses or wants to change or cancel cancellation of continuingcollective administration already appliedbusiness229

(2) Major notifications related to employment insurance to be filed by employers [Related to businessoffices (including those for industrial accident insurance)]
Cases

Required documents[i] Notice of establishment of insurance relationship

When having started a business, etc.

[ii] Declaration of estimated insurance premium

By when

To whom

Within 10 days from the day
following the day of theestablishment of a new Director-General of the competentinsurance relationshipLabour Standards Inspection Office orWithin 50 days from the day director of the competent publicfollowing the day of the employment security officeestablishment of the relevant
insurance relationshipWithin 10 days from the day[iii] Notice of installation of an employment insuranceDirector of the competentfollowing the day of theemployment security officeapplied business office (after submission of [i])installation of a business office
When intending to enroll in insurance for a voluntary
Application for voluntary enrollment (together with [iii])
applicable business

Each occasion when seeking Director of the competentemployment security officevoluntary enrollment[iv] Notice of appointment or dismissal of agent for labor
insurance
When having appointed (dismissed) an agent

Each occasion[v] Notice of change in name or location

Notice of various changes concerning a business office of an
employment insurance-applied business (after submission of[v])

When having abolished a business, etc.

publicDirector-General of the competentLabour Standards Inspection Office or
director of the competent public
employment security office having
jurisdiction over the appointment(dismissal) of agents
Director of the competent public
employment security office having
jurisdiction over the appointment(dismissal) of agents

Notice of appointment or dismissal of agent for
notifications in relation to the insured of employment
insurance (after submission of [iv])When having changed the name or location of a businessoffice or changed a business type, etc.

publicDirector-General of the competentLabour Standards Inspection Office or
director of the competent public
Within 10 days from the day employment security office (for a change
following the day of a in location, at the new location)changeDirector of the competent public
employment security office (for a change
in location, at the new location)

Notice of abolition of an employment insurance-applied Within 10 days from the day
Director of the competentbusiness officefollowing the day of employment security office(Declaration of final insurance premium)
abolition

public[Related to the insured]
Cases
When having employed a worker, etc.

Required documents

By when

To where

Notice of acquisition of the employment insurance By 10th of the following Director of the competent public
qualificationmonthemployment security office

Within 10 days from the Director of the competent public
When the insured has been transferred within Notice of relocation of the insured of employment
day following the day of employment security office atbusiness offices
insurance
relocation
the location after relocation

When the insured has changed his/her name(In addition to the following notices)
Notice of acquisition of the employment insurance
qualification
Notice of loss of the employment insurance
qualification
Notice of relocation of the insured of employment
insurance
When an employer files
Notice of registration or change of personal
any other notification in
numberrelation to the relevant Director of the competent public
Notice of termination of continuous employment insured on or after theemployment security officepersonnel exchange
day of the relevant
Application for basic continuous employmentchangebenefits for the elderly (including the first
application)
Application for family care leave benefits
Application for child care leave benefits(including the first application)
Application for parental leave benefits

Certificate of monthly wage as of the time when Until the day on which* When the insured started to take child care leave the insured of employment insurance starts to take the first application isa leave (child care leave)
submitted

Cases

Required documents

By when

Certificate of monthly wage as of the time when Within 10 days from the day* When the insured started to take family care
the insured of employment insurance starts to take following the day of theleavecommencement of a leave
a leave (family care leave)

Director of the competent public
employment security office

To whereDirector of the competent public
employment security office

When the insured who had taken child care leave
Certificate of wage as of the time when the insured Within 10 days from the day
or family care leave or had had his/her working
Director of the competent publicof employment insurance starts to take a leave or following the day on which ahours shortened separated from employment andperson ceased to be the insured employment security officehave his/her working hours shortened
became a specific qualified recipient
When the insured has separated from employment Notice of loss of the employment insuranceor has died, etc.
qualification

230

Within 10 days from the day
Director of the competent publicfollowing the day on which aperson ceased to be the insured employment security officeWhen the insured has lost or damaged his/her Application for reissuance of employment
insurance certificate
insurance certificate

Each occasion (by the relevant
person him/herself)

Director of a public employment
security office that the person
selects

Application for basic continuous employment**When the insured intends to receive basic benefits for the elderly (Certificate of wage at thecontinuous employment benefits for the elderly time when the insured of employment insurance
became 60 years old, etc.)

Within 4 months from the firstday of the month in which theprovision of benefits started

Director of the competent public
employment security office**When the insured intends to receive re- Application for re-employment benefits for theemployment benefits for the elderly
elderly, etc.

Within 4 months from the firstday of the month in which theprovision of benefits started
after re-employment

Director of the competent public
employment security office

Application for family care leave benefits**When the insured intends to receive family care (Certificate of wage as of the time when theleave benefits for the first timeinsured of employment insurance starts to take aleave, etc.)

In principle, by the last day ofthe month that contains the day
Director of the competent public
on which 2 months elapse
employment security officefrom the day of the end of a
leave
From the day following the
day on which 8 weeks elapse

Confirmation slip for eligibility for child carefrom the childbirth (whenleave benefits and application for parental leavechildbirth was earlier than the**When the insured intends to receive parental
Director of the competent publicbenefits (Certificate of wage as of the time when due date , from the due date) toleave benefits
employment security office
the insured of employment insurance starts to take the last day of the month that
contains the day on which 2
a leave, etc.)
months elapse from therelevant day

Confirmation slip for eligibility for child careleave benefits and (first time) application for**When the insured intends to receive child careparental leave benefits (Certificate of wage as ofleave benefits for the first time
the time when the insured of employment
insurance starts to take a leave, etc.)

By the last day of the monththat contains the day on which
4 months elapse from the dayof the commencement of aleave

Director of the competent public
employment security office• When an employer submits an application for benefits, the employer may submit the documents marked with “*” together withthe application.
・Procedures in cases marked with ** must be undertaken, in principle, via an employer. An application for benefits may be
filed within two years after the occurrence of the grounds for provision of benefits, even after the abovementioned due dates
for application.
(Note) Forms for these notices are available at Hello Work (public employment security offices).

231

(3) Major procedures for request for industrial accident insurance benefits and application for special payments
Cases

Required documents

FilersRequest for medical treatment
benefits
asmedicalcompensation benefits andmedical benefits for a worker
When intending to receive medical treatment engaged in multiple businesses
benefits at a designated medical institution, etc. (in the case of injury or disease
for injury or disease due to an industrial due to an industrial accident or Worker
accident or accident caused by multiple accident caused by multiple
businesses)
businesses, or while commuting

By when

To whereDirector-GeneraloftheWhen intending to competent Labour Standards
receive
medical Inspection Office via atreatment benefits
designated medical institution,
etc.

Request for medical treatment
benefits as medical benefits(in the case of commuting
injury or disease)
Request for medical expenses
as medical compensation
benefits and medical benefits
for a worker engaged in
When having received medical treatment at a multiple businesses
medical institution other than designated ones (in the case of injury due to an
for injury or disease due to an industrial industrial accident or accident Worker
accident or accident caused by multiple caused by multiple businesses)

Each occasion

Director-Generalofthecompetent Labour Standards
OfficeEach occasion

Director-Generalofthecompetent Labour Standards
OfficeEach occasion

Director-Generalofthecompetent Labour Standards
OfficeRequest for compensation
pension for surviving family;
Request for pension for Surviving family
When a worker has died due to injury due to an
surviving family of a worker who is a qualified
industrial accident or accident caused by
Each occasion
engagedinmultiple recipientofmultiple businesses, or while commuting
businesses; Application for pension
specialpayment
forsurvivingfamily;Director-Generalofthecompetent Labour Standards
Officebusinesses, or while commuting

Request for medical expenses
as medical benefits(in the case of commuting
injury or disease)

Request for absence from work
compensation
benefits;
Request for absence from work
benefits for a worker engaged
inmultiplebusinesses;
Applicationforspecialpayment for absence from
When a worker cannot work and receive wages workfor 4 days or longer due to medical treatment (in the case of injury due to an
for injury or disease due to an industrial industrial accident or accident Worker
accident or accident caused by multiple caused by multiple businesses)

businesses, or while commuting

Request for absence from work
compensation
benefits;
Applicationforspecialpayment for absence fromwork
(in the case of commuting
injury or disease)

Requestfordisability
compensation
benefits;
Request for disability benefits
for a worker engaged in
multiplebusinesses;
Application for disability
special payment; Application
for disability special pension;
Application for disability
When any physical disability remains after special lump sum payment
injury or disease due to an industrial accident (in the case of injury due to an
Workeror accident caused by multiple businesses, or industrial accident or accident
while commuting has been healed
caused by multiple businesses)
Request for disability benefits;
Application for disability
special payment; Application
for disability special pension;
Application for disability
special lump sum payment(in the case of commuting
injury or disease)232

Application for special
pension for surviving family(in the case of injury due toan industrial accident or
accident caused by multiple
businesses)
Request for pension forsurvivingfamily;Application for special
payment
forsurvivingfamily; Application for
special pension for survivingfamily(in the case of commuting
injury)Request for compensation
lump sum payment forsurviving family; Request
for lump sum payment forsurviving family of a worker
engagedinmultiplebusinesses; Application for
specialpaymentforIn the case where a worker died due to injury survivingfamily;due to an industrial accident or accident caused Application for special lumpby multiple businesses, or while commuting, sum payment for surviving
and there was no surviving family who could family
receive (compensation) pension for surviving (in the case of injury due toWorker's
family at that time, or where the right of a an industrial accident or
Each occasion
surviving family
qualitied recipient has been extinguished, and accident caused by multiple
there is no other qualified recipient of pension, businesses)
and when the total amount of already paid
pension is less than 1,000 times of basic daily Request for lump sum
payment
forsurvivingamount of pension
family; Application for
specialpayment
forsurvivingfamily;Application for special lumpsum payment for survivingfamily(in the case of commuting
injury or disease)
Request for funeral service
fee and funeral benefits for aworker engaged in multiple
businesses
When a worker has died due to injury due to an (in the case of injury due to
Person who holds
industrial accident or accident caused by an industrial accident ora funeral for a Each occasion
multiple businesses, or while commuting, and accident caused by multiple
workera funeral is held thereforbusinesses)

Director-Generalofthecompetent Labour Standards
OfficeDirector-Generalofthecompetent Labour Standards
OfficeRequest for funeral benefits(in the case of commuting
injury or disease)
Request for nursing care
When a worker who is receiving an injury and compensation
benefits;
disease (compensation) pension or disability Application for nursing care
Worker(compensation) pension due to a certain benefits for a worker
disability is currently receiving nursing care engaged
inmultiplebusinesses

233

On or after the first dayof the month following Director-General
of
the
the
month during competent Labour Standards
whichaworker Officereceived nursing care(4) Major procedures to be undertaken in relation to request for industrial accident insurance benefits
Cases

Required documents

Filers

Notice of (change of)designated hospital, etc.
for receiving medical
treatment benefits asmedicalcompensation
benefits and medical
benefits for a worker
engaged in multiple
businesses
When a person who is receiving medical (in the case of injury due
treatment (compensation) benefits intends to an industrial accident
Workerto change a designated medical or accident caused byinstitution, etc.
multiple businesses)

By when

To whereDirector-General of the
When intending tocompetent Labourchange a designatedStandards Inspection
medical institution,
Office via a designatedetc.
medical institution, etc.

Notice of (change of)designated hospital, etc.
for receiving medical
treatment benefits asmedical benefits
(in
the
case
of
commuting injury or
disease)Request for change of
disability compensation
benefits; Request forchange of disability
When there was a change in the level of benefits for a worker
disability of a person who is receiving engaged in multiple Worker
disability (compensation) pension
businesses; Request forchange of disability
benefits; Application forchange of disability
special pension

Each occasion

Director-General of thecompetent Labour
Standards Office

Request for change ofrecipient of compensation
pension for survivingfamily;Requestforchange of recipient ofpension for surviving Surviving
When there was a change in a qualified family of a worker family whorecipient of (compensation) pension for engaged in multiple newly became Each occasion
surviving familybusinesses; Request for a qualified
change of recipient of recipientpension for survivingfamily; Application forchange of recipient ofspecialpensionforsurviving family

Director-General of thecompetent Labour
Standards Office

Applicationforsuspension of provisionof compensation pension
for surviving family;
When the whereabouts of a person Applicationfor Qualified
holding
the
right
to
receive suspension of provision recipient of the(compensation) pension for surviving of pension for surviving same rank or
Each occasion
family have not been known for 1 year or family of a worker the subsequent
longerengaged in multiple rankbusinesses; Applicationforsuspension
ofprovision of pension forsurviving family

Director-General of thecompetent Labour
Standards Office234

Notice of extinguishmentof right to receive
compensation pension forsurviving family; Notice
When the right of a person holding the of extinguishment of right
Person whoright to receive (compensation) pension to receive pension for
was a qualified Each occasion
for surviving family has been surviving family of arecipientextinguishedworkerengagedinmultiplebusinesses,
Notice of extinguishmentof right to receive pension
for surviving family

Director-General of thecompetent Labour
Standards Office

Notice of change incalculation base forcompensation pension forsurviving family; Notice
When there was a change in the numberof change in calculationof surviving family members who share abase for pension forlivelihood with a qualified recipient of
Qualifiedsurviving family of a(compensation) pension for surviving
recipientworkerengagedinfamily and can receive (compensation)
multiplebusinesses;
pension for surviving family
Notice of change incalculation base forpension for survivingfamilyEach occasion

Director-General of thecompetent Labour
Standards Office

When a person is receiving disease
Periodical report of a(compensation), etc. pension, disability
qualified recipient of Qualified(compensation),etc.
pension,or
insurance benefits as recipientcompensation), etc. pension for surviving
pensionfamilyDepending on thebirth date of aqualified recipient(in the case of(compensation)pension forsurviving family, the Director-General of therelevant deadcompetent Labour
worker), by June 30 Standards Office(for those born fromJanuary to June) andby October 30 (forthose born from Julyto December) every
year

Notice of change in thename or address of a
When there was a change in the name or qualified recipient of
Qualifiedaddress, etc. of a qualified recipient of insurance benefits asrecipientpension, etc.
pension or change infinancial institution, etc.
for receiving pension

Each occasion

Director-General of thecompetent Labour
Standards Inspection
Office (submission may be
via the Labour Standards
Inspection Office having
jurisdiction over thequalified recipient's
address)

When there was a change in relationship Notice of change inofreceiving
employee's pension relationship of receiving Qualified
insurance benefits or other social employee's
pension recipient
insurance benefits
insurance benefits, etc.

Each occasion

Director-General of thecompetent Labour
Standards Office

In the case where a person holding the
Person who
Requestfor
unpaidright to receive insurance benefits andholds the rightinsurance
benefits;
special payment has died, when there is
to claim unpaid Each occasion
Application for unpaid
any unpaid portion of insurance benefits
insurance
special payment
to be paid to that person
benefits

Director-General of thecompetent Labour
Standards Office* For other procedures for employee's pension and health insurance, make inquiries at the nearest pension service office.

235

II List of Minimum Wages by Prefecture
Regional minimum wages are as shown below. Additionally, special minimum wages are set for some businesstypes. See the dedicated website for detail.
FY2023 Revision of Minimum Wages by Prefecture
Prefectures

Revised minimum wages (yen)* Figures in the parentheses are those before revision

Amount ofincrease (yen)Effective date

Hokkaido
Aomori

October 1, 2023
October 7, 2023

Iwate
Miyagi
Akita
Yamagata
Fukushima

October 4, 2023
October 1, 2023
October 1, 2023
October 14, 2023
October 1, 2023

IbarakiTochigi
Gunma

October 1, 2023
October 1, 2023
October 5, 2023

Saitama

October 1, 2023

Chiba
Tokyo
Kanagawa

October 1, 2023
October 1, 2023
October 1, 2023

NiigataToyamaOctober 1, 2023
October 1, 2023

Ishikawa

October 8, 2023

Fukui

October 1, 2023

Yamanashi
NaganoGifu
Shizuoka
Aichi
Mie

October 1, 2023
October 1, 2023
October 1, 2023
October 1, 2023
October 1, 2023
October 1, 2023

Shiga

October 1, 2023

Kyoto
Osaka
Hyogo
Nara

October 6, 2023
October 1, 2023
October 1, 2023
October 1, 2023

Wakayama

October 1, 2023

Tottori

October 5, 2023

Shimane

October 6, 2023

Okayama

October 1, 2023

Hiroshima
Yamaguchi
Tokushima

October 1, 2023
October 1, 2023
October 1, 2023

KagawaEhime
Kochi
Fukuoka
Saga
Nagasaki
Kumamoto

October 1, 2023
October 6, 2023
October 8, 2023
October 6, 2023
October 14, 2023
October 13, 2023
October 8, 2023

Oita
Miyazaki

October 6, 2023
October 6, 2023

Kagoshima

October 6, 2023

Okinawa

October 8, 2023

< Access the dedicated website for minimum wages from here.>(October 2023)

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