 | This article has multiple issues. Please help improve it or discuss these issues on the talk page . (Learn how and when to remove these template messages)
|
Japanese labour law is the system of labour law operating in Japan.
| This article has multiple issues. Please help improve it or discuss these issues on the talk page . (Learn how and when to remove these template messages)
|
Japanese labour law is the system of labour law operating in Japan.
The scope of Japanese labour law is defined by the Japanese Civil Code. Article 622 defines contracts of employment, article 632 defines a contract for work, and article 643 defines a contract for mandate. The parties are free to decide the functional nature of their contract, but labour rights apply regardless of the label in the contract. Courts use a subordination test to determine whether someone is an employee or is self-employed.
Under the Civil Code, a contract in which one person performs services for another with compensation may be construed as any one of the following:
Employment agreements are regulated by the Civil Code and by the Labor Standards Act of 1947 (労働基準法, Rōdō-kijun-hō). (The JETRO reference below covers this subject.) Some general guidelines follow. [1] Some items apply only to companies with ten or more employees.
Conditions of employment must be clearly set out in the employment agreement or in supplementary rules which are provided to the employee.
Japan has minimum wage laws: the actual amount is based upon the local cost of living and therefore varies from region to region (see links below).
Pay must generally be provided in full, in cash, and paid directly to the employee on or by a specified day of the month (as per the contract).
Cash payments are usually made by electronic funds transfer. The maximum pay period is one month, which is the standard pay period throughout Japan, although bonuses and other supplemental payments such as commuter allowance may be paid at longer intervals.
Salaries at Japanese companies are based on seniority, and are adjusted for the needs of employees, such as if they have a family and children. Companies also generally reimburse for public transportation.
Since 1987, Japan has adopted the principle of a 40-hour week. If people work over eight hours per day, 40 hours per week, or on holidays (and one "weekend" day a week), or at late night (10pm to 5am), they are entitled to overtime pay. Under the Labor Standards Act of 1947 article 37, this is 25% of pay, or 35% on holidays. Since 2010, a rate of 50% overtime pay applies for people working over 60 hours a week. However, although overtime pay is required by law, Japanese companies before 1990 were known to take employees to court over employees' requests for overtime or other legitimate compensation. [2] Also, collective agreements may extend the normal work week.
If an employee works six to eight hours in a day, they are entitled to a 45-minute break. If an employee works eight hours in a day, they are entitled to a one-hour break.
The Labor Standards Act of 1947 gives the right to paid annual leave based on an employee's seniority. Since 1988, employees have the right to ten days of annual leave after the employee's first 6 months of service. [3] The minimum amount of annual leave increases each year thereafter following a fixed schedule (as per the contract), usually up to twenty working days a year. An employee is entitled to one holiday per week unless they otherwise receive four or more holidays within every period of four weeks.
Several forms of unpaid leave are also provided by law, including maternity leave, child care leave, family care leave and nursing leave.
The "Work Style Reform Law" [4] was passed on June 29, 2018, by the Abe government. [5] The reform bills are also referred to as "The Revolution In The Way [People] Work" (働き方改革) [6] and is effective April 2019 (dates vary according to amendment and size of employer [7] ), with violation subject to fines. [7] The stated purpose includes restricting overtime hours, improving treatment of non-regular (such as temporary and part-time) workers and, more broadly, upping productivity of the Japanese economy. [6]
The bill consists of three main pillars: 1) an overtime cap of 100 hours a month, 2) "equal pay for equal work" to improve treatment of non-regular employees, [8] and 3) an exemption for "high-level" professionals from the overtime cap referred to in the first pillar. [9]
The overtime element introduces a legal cap on overtime to a current landscape with unlimited overtime hours. [7] The 100 hours cap (and 720 hours/year) is the limit allowed for busier months, with the general upper limit set at 45 hours per month (360 hours/year). [9] The Health, Labor and Welfare Ministry defines the threshold for karōshi as greater than 80 hours of overtime a month. [6] The cap is effective April 2019 for large companies and April 2020 for small and medium-sized companies. [4]
"Equal pay for equal work" entails equal pay for non-regular workers that engage in the same scope of work. [7] Put another way, equal treatment of workers—without discrimination on employment status. [7] Question towards the lack of specificity of this portion of the law has been raised, [9] and it is expected that the administration will provide further specifications. [7] This amendment is effective April 2020 for large companies and April 2021 for small and medium-sized companies. [9]
The "high-level" professionals who qualify for exemption from the overtime cap are those whose work require highly specific knowledge (such as financial traders, consultants, and product developers; professions are yet to be specified [7] ) and earn annual incomes greater than JPY 10.75 million ($97,500). [8] A provision allowing "high-level" professionals to give up exemption status if they desired was added, following criticism from opposition that this exemption could further exacerbate the overwork culture. [8] This amendment is effective April 2019. [9]
Public reaction has been generally positive towards the overtime and equal pay amendments, though divided on the exemption amendment [8] which has been especially controversial. [6] [10] Those in favor argue for its push towards productivity, [11] whereas the opposition argue no pay for overtime hours could put workers at greater risk—politician Yukio Edano goes so far as calling it "The Permitting Death By Overwork (Karoshi) Legislation (過労死容認法案)". [6]
Karōshi and reforms on labour policy in Japan were further brought into urgent attention following the suicide of 24-year-old Matsuri Takahashi on Christmas Day in 2015. [12] Takahashi was an employee at Dentsu, Japan's leading advertising agency, [13] and worked more than 100 hours overtime in the months prior to her death [14] —her death was ruled as karōshi. [12]
Under the Japanese Constitution article 28 everyone has the right to unionise and to collectively bargain. Under the Trade Union Act of 1949 article 7(2) an employer's refusal to bargain with a union in good faith, without a good reason, is an unfair labour practice. [15] The duty to bargain in good faith extends to managerial issues affecting employment conditions.
Under the Trade Union Act of 1949 article 18, a Ministerial order may extend the provisions of a collective agreement if both employers and a union request it to a defined area or sector. However, in practice this is used very little. Under the Trade Union Act of 1949 article 7(1) a closed shop agreement is permitted with majority unions.
Japan has, unlike the majority of OECD countries, no right of workers to vote for members of a company board of directors. There is no statutory right to elect a work council with binding rights, although companies use employee consultative committees widely. If there is no majority recognised union, employee committees may make agreements with the same effect as collective agreements. Under Trade Union Act of 1949 article 38(4) the use of health and safety committees is discretionary.
The Japanese Constitution article 28 contains the basic right to strike, or take collective action in defence of workers' interests. However, there is no protection for unofficial strikes without a union's endorsement, political strikes, [16] and secondary action has been suppressed since 1975 case law. [17] "Defensive" lock-outs aimed to restore "equilibrium" between the collective parties are permitted. [18] There is also a requirement to notify an employer 10 days in advance before a strike in "essential" services under the Labour Relations Adjustment Act, article 37(1). A strike in breach of a peace obligation is not in itself unlawful and is not a ground for dismissal. [19] Dismissal for taking part in a lawful strike is not permitted but there is no restriction on hiring replacements during a strike.
Article 4 of the Labour Standards Act of 1947 prohibits discrimination in pay based on gender: "An employer shall not engage in discriminatory treatment of a woman as compared with a man with respect to wages by reason of the worker being a woman."
Subsequent legislation has also banned forms of disparate treatment which were previously used to skirt this stipulation. For instance, women must be afforded the same hiring, job training, promotion opportunities and retirement plans as men. Despite the law, it is reported that the disparity in pay and in promotion between men and women is one of the highest of the so-called advanced countries.
Article 3 of the Labour Standards Act of 1947 prohibits ethnic, national and religious discrimination by employers in regards to work conditions: "An employer shall not engage in discriminatory treatment with respect to wages, working hours or other working conditions by reason of the nationality, creed or social status of any worker ..."
Article 7 of the Trade Union Act of 1949 prohibits discrimination against people who join or attempt to join a union, or who participate in union activities. [20]
Since 2008, part-time workers have a right to equal treatment with full-time workers if they have contracts for indefinite duration. If part-time workers have a fixed-term contract, there is no right to equal treatment. Case law has stated that different redundancy payments between regular workers and others are potentially justifiable. Fixed-term contracts are not restricted, and there is no right to equal treatment with permanent workers. The Labour Standards Act of 1947 article 14 states a fixed-term contract's maximum duration is three years, but there is no limit on renewals or any reason required. Case law suggests renewals are possible. However, since 2013, a fixed-term contract would convert into a permanent contract after five years if the employee submits a request, unless renewal could be regarded as socially acceptable.
Until the Worker Dispatching Act of 1986, agency work was strictly controlled and limited to a number of sectors. The rules were liberalised in 1996 and 1999 and then restrictions were removed in 2004. Agency workers have no right to equal treatment with directly employed staff.
A fixed-term employment contract is generally limited to one year (there are some exceptions). For tenured staff, the term is not specified (but of course retirement age is usually stated). If a contract is a full-year contract, and has been renewed at least once, then compensation—typically one month's pay for each year worked—is often negotiated.
Under the Labour Standards Act of 1947 article 20, an employer must usually give 30 days' notice before dismissal, or pay in lieu of notice. An employee is permitted to resign at any time (usually two weeks' notice is required). [21]
An employer must only dismiss an employee for rational, reasonable, and socially acceptable reason. There is no qualifying period for this right. The main criterion for a fair dismissal is that it follows a fair procedure, since case law from 1970. Fair reasons for dismissal are defined by the Labour Contracts Act 2008. However, reinstatement is rare and compensation is the normal remedy under the Japanese Civil Code, articles 546 and 709.
Dismissal is specifically prohibited during:
An employee who plans to contest dismissal should say so, demand that the reason be provided in writing, and should not accept the thirty days' pay in lieu of notice—as this may be construed as accepting dismissal.
There are no legal rights to a redundancy payment, and there is no rule about priority in redundancy based on seniority.
The Employment Insurance Act of 1974 gives workers who have lost their jobs benefits.
General:
International:
Labour laws, labour code or employment laws are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee, employer, and union.
Karoshi, which can be translated into "overwork death", is a Japanese term relating to occupation-related sudden death.
Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. A collective agreement reached by these negotiations functions as a labour contract between an employer and one or more unions, and typically establishes terms regarding wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. Such agreements can also include 'productivity bargaining' in which workers agree to changes to working practices in return for higher pay or greater job security.
Overtime is the amount of time someone works beyond normal working hours. The term is also used for the pay received for this time. Normal hours may be determined in several ways:
United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK have a minimum set of employment rights, from Acts of Parliament, Regulations, common law and equity. This includes the right to a minimum wage of £11.44 for over-23-year-olds from April 2023 under the National Minimum Wage Act 1998. The Working Time Regulations 1998 give the right to 28 days paid holidays, breaks from work, and attempt to limit long working hours. The Employment Rights Act 1996 gives the right to leave for child care, and the right to request flexible working patterns. The Pensions Act 2008 gives the right to be automatically enrolled in a basic occupational pension, whose funds must be protected according to the Pensions Act 1995. Workers must be able to vote for trustees of their occupational pensions under the Pensions Act 2004. In some enterprises, such as universities or NHS foundation trusts, staff can vote for the directors of the organisation. In enterprises with over 50 staff, workers must be negotiated with, with a view to agreement on any contract or workplace organisation changes, major economic developments or difficulties. The UK Corporate Governance Code recommends worker involvement in voting for a listed company's board of directors but does not yet follow international standards in protecting the right to vote in law. Collective bargaining, between democratically organised trade unions and the enterprise's management, has been seen as a "single channel" for individual workers to counteract the employer's abuse of power when it dismisses staff or fix the terms of work. Collective agreements are ultimately backed up by a trade union's right to strike: a fundamental requirement of democratic society in international law. Under the Trade Union and Labour Relations (Consolidation) Act 1992 strike action is protected when it is "in contemplation or furtherance of a trade dispute".
In employment law, constructive dismissal, also called disguised dismissal, constructive discharge or constructive termination, occurs when an employee resigns due to the employer creating a hostile work environment. This often serves as a tactic to avoid payment of statutory severance pay and benefits. In essence, although the employee resigns, the resignation is not truly voluntary but rather a response to intolerable working conditions imposed by the employer. These conditions can include unreasonable work demands, harassment, or significant changes to the employment terms without the employee’s consent.
Termination of employment or separation of employment is an employee's departure from a job and the end of an employee's duration with an employer. Termination may be voluntary on the employee's part (resignation), or it may be at the hands of the employer, often in the form of dismissal (firing) or a layoff. Dismissal or firing is usually thought to be the employee's fault, whereas a layoff is generally done for business reasons outside the employee's performance.
Australian labour law sets the rights of working people, the role of trade unions, and democracy at work, and the duties of employers, across the Commonwealth and in states. Under the Fair Work Act 2009, the Fair Work Commission creates a national minimum wage and oversees National Employment Standards for fair hours, holidays, parental leave and job security. The FWC also creates modern awards that apply to most sectors of work, numbering 150 in 2024, with minimum pay scales, and better rights for overtime, holidays, paid leave, and superannuation for a pension in retirement. Beyond this floor of rights, trade unions and employers often create enterprise bargaining agreements for better wages and conditions in their workplaces. In 2024, collective agreements covered 15% of employees, while 22% of employees were classified as "casual", meaning that they lose many protections other workers have. Australia's laws on the right to take collective action are among the most restrictive in the developed world, and Australia does not have a general law protecting workers' rights to vote and elect worker directors on corporation boards as do most other wealthy OECD countries.
United States labor law sets the rights and duties for employees, labor unions, and employers in the US. Labor law's basic aim is to remedy the "inequality of bargaining power" between employees and employers, especially employers "organized in the corporate or other forms of ownership association". Over the 20th century, federal law created minimum social and economic rights, and encouraged state laws to go beyond the minimum to favor employees. The Fair Labor Standards Act of 1938 requires a federal minimum wage, currently $7.25 but higher in 29 states and D.C., and discourages working weeks over 40 hours through time-and-a-half overtime pay. There are no federal laws, and few state laws, requiring paid holidays or paid family leave. The Family and Medical Leave Act of 1993 creates a limited right to 12 weeks of unpaid leave in larger employers. There is no automatic right to an occupational pension beyond federally guaranteed Social Security, but the Employee Retirement Income Security Act of 1974 requires standards of prudent management and good governance if employers agree to provide pensions, health plans or other benefits. The Occupational Safety and Health Act of 1970 requires employees have a safe system of work.
Labor rights or workers' rights are both legal rights and human rights relating to labor relations between workers and employers. These rights are codified in national and international labor and employment law. In general, these rights influence working conditions in the relations of employment. One of the most prominent is the right to freedom of association, otherwise known as the right to organize. Workers organized in trade unions exercise the right to collective bargaining to improve working conditions.
Many both in and outside Japan share an image of the Japanese work environment that is based on a "simultaneous recruiting of new graduates" and "lifetime-employment" model used by large companies as well as a reputation of long work-hours and strong devotion to one's company. This environment is said to reflect economic conditions beginning in the 1920s, when major corporations competing in the international marketplace began to accrue the same prestige that had traditionally been ascribed to the daimyō–retainer relationship of feudal Japan or government service in the Meiji Restoration.
A severance package is pay and benefits that employees may be entitled to receive when they leave employment at a company unwillfully. In addition to their remaining regular pay, it may include some of the following:
The Employment Rights Act 1996 is a United Kingdom Act of Parliament passed by the Conservative government to codify existing law on individual rights in UK labour law.
The New Zealand Employment Relations Act 2000 is a statute of the Parliament of New Zealand. It was substantially amended by the Employment Relations Amendment Act 2001 and by the ERAA 2004.
United Kingdom agency worker law refers to the law which regulates people's work through employment agencies in the United Kingdom. Though statistics are disputed, there are currently between half a million and one and a half million agency workers in the UK, and probably over 17,000 agencies. As a result of judge made law and absence of statutory protection, agency workers have more flexible pay and working conditions than permanent staff covered under the Employment Rights Act 1996.
Iranian labor law describes the rules of employment in Iran. As a still developing country, Iran is considerably behind by international standards. It has failed to ratify the two basic Conventions of the International Labour Organization on freedom of association and collective bargaining, and one on abolition of child labor. Countries such as the US and India have also failed to ratify many of these Conventions and a mere 14 other Conventions, only 2 since the Islamic Revolution.
Indian labour law refers to law regulating labour in India. Traditionally, the Indian government at the federal and state levels has sought to ensure a high degree of protection for workers, but in practice, this differs due to the form of government and because labour is a subject in the concurrent list of the Indian Constitution. The Minimum Wages Act 1948 requires companies to pay the minimum wage set by the government alongside limiting working weeks to 40 hours. Overtime is strongly discouraged with the premium on overtime being 100% of the total wage. The Payment of Wages Act 1936 mandates the payment of wages on time on the last working day of every month via bank transfer or postal service. The Factories Act 1948 and the Shops and Establishment Act 1960 mandate 15 working days of fully paid vacation leave and 7 casual leaves each year to each employee, with an additional 7 fully paid sick days. The Maternity Benefit (Amendment) Act, 2017 gives female employees of every company the right to take 6 months' worth of fully paid maternity leave. It also provides for 6 weeks worth of paid leaves in case of miscarriage or medical termination of pregnancy. The Employees' Provident Fund Organisation and the Employees' State Insurance, governed by statutory acts provide workers with necessary social security for retirement benefits and medical and unemployment benefits respectively. Workers entitled to be covered under the Employees' State Insurance are also entitled to 90 days worth of paid medical leaves. A contract of employment can always provide for more rights than the statutory minimum set rights. The Indian parliament passed four labour codes in the 2019 and 2020 sessions. These four codes will consolidate 44 existing labour laws. They are: The Industrial Relations Code 2020, The Code on Social Security 2020, The Occupational Safety, Health and Working Conditions Code, 2020 and The Code on Wages 2019.
In labour law, unfair dismissal is an act of employment termination made without good reason or contrary to the country's specific legislation.
South African labour law regulates the relationship between employers, employees and trade unions in the Republic of South Africa.
Labour law regulates the legal relationship in Bulgaria between individual workers and employees as well as between coalitions and representative bodies.
| Authority control databases: National |
|---|
