As you are all aware the Government was returned with a greater majority in the recent election.
As a consequence we believe the government’s proposed Work Reforms should progress.
In addition, in the September Extraordinary Diet session before it was convened for the election,
on September 21st the Ministry of Health Labour and Welfare submitted draft amendments for
seven[1] (7) of the labour laws relating to labour reform.
Through PMPs research even though it is unknown whether the 7 labour law reforms will be
debated in this month’s special Diet or even during the next ordinary Diet session
(Due to other important bills to be debated the deliberation schedule is still to be confirmed),
the proposal was submitted on September 21st and this remains unchanged.
Despite the uncertainly of the schedule, it is important that through PMP News we advise you
in advance of major changes expected to the Labour Laws. These changes will likely result in
multiple actions requiring your attention next year. The meaning of the 36 Agreement will reinforced
and Companies monitored to ensure compliance, working hour management will need careful
consideration and oversight, the Industrial Doctor and other health and safety measures will
require strengthening and the treatment of Dispatched workers will analyzed.
What now follows captures the highlights of the significant changes being proposed to create a
Japan that promotes an easier working environment
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1. To continuously promote overall Work Reforms:
The Government shall clarify the basic concept related to Work Reforms and shall provide
“fundamental guidelines” by cabinet decision to ensure its overall and continuous promotion.
(Employment Measures Act)
2. Correcting Long Working Hours, Realizing Diverse and Flexible Working Styles:
(1) Revision of the systems regarding Working Hours (Labor Standards Act)
– The maximum hours of overtime will be set at 45 hours a month and 360 hours a year,
or in special situations on an extraordinary basis only 720 hours a year, no more than
100 hours in any month (including holiday work) and the average of consecutive months
(including holiday work) is not to exceed 80 hours..
※Drivers, the construction industry and Doctors during a grace period, will be exempt
from the maximums. Those in R&D provided they meet with doctors. have alternative
holidays or other such matter to ensure their health is maintained will also be exempt
from the overtime hour maximums.
– The grace period for small and medium sized organizations will cease and the
150% loading will be imposed on them for overtime work that is performed in excess
of 60 hours a month. In addition, for those workers who receive more than 10 days of
annual leave, the Company will need to specify annually a time when they will take
5 days of leave.
– To the Discretionary Working System for Planning Employees there will be some new
positions that will be eligible for the system, Problem Solving Proposal development roles,
those who operate the PDCA cycle at their discretion, in addition to those highly
professional roles. (The roles eligible for the Discretionary Working System for Planning
Employees will be detailed and there will be a strengthening of the requirements to ensure
their health is maintained.)
(2) The introduction and Promotion of an Interval Period System (Act on Special
Measures for Improvement of Working Hours Arrangements)
– This is whereby the employer must determine and secure an interval between the
finishing time on one day and the commencement time the following day.
(3) The strengthening of the Industrial Doctor and Industrial Health system (Industrial
Health and Safety Act)
– The Company is to provide the Industrial Doctor with the appropriate information
in a timely manner in order that they can undertake their responsibilities, thereby
strengthening the system.
3. Regardless of Employment Status, fair treatment is to be provided:
(1) To ensure disparity can be eliminated Employment Regulations are to be reviewed.
(Part Time Workers Act, Labour Contracts Act, Dispatch Workers Law)
– To ensure unreasonable differences between full time employees and part time and
fixed term contract workers are eliminated, with each individual’s treatment to
consider their individual circumstances and treatment determined accordingly.
In addition the Employment Regulations for fixed term workers should be reviewed to
ensure parity.
– For Dispatched Workers (a) the treatment of dispatched workers at a dispatched
location should be balanced with and equal to the employees at the dispatched
location, or (b) a requirement to mandate and provide minimum conditions* with a
Labor Management Agreement, must be ensured by the Dispatching Company.
*For those performing the same work as employees, their salary should be at least
the same as the average salary of the employees.
(2) An enhancing of the requirement to explain the working treatment to the workers.
(Part Time Workers Act, Labour Contracts Act, Dispatch Workers Act)
– A requirement to explain to part time, fixed term and temporary workers why there
is a difference in their salaries as compared to full time employees.
(3) Implementation by the authorities to ensure execution and prepare an alternative
dispute resolution (ADR) process:
– Number (1) above is a Requirement of the Employer
– And for Number (2) (Employer’s responsibility to explain) above, the authorities
will prepare the measures to ensure they can execute and will implement a formal
ADR process.
[Implementation]
1: Promulgation Date
2: April 1, 2019 (Article 2-(1) regarding overtime loadings will be delayed for Small and Medium
sized corporations until April 1 2022.)
3: April 1, 2019 (For small and medium sized corporations the changes regarding Part Time
Workers Act and the Labour Contracts Act will be April 1, 2020)
For those who would like to read more detail (Japanese only) please see the below:
http://www.mhlw.go.jp/file/05-Shingikai-10801000-Iseikyoku-Soumuka/0000178019.pdf
Thank you.