In Japan, a series of law amendments related to labor and human resource management are due to be enforced. This article provides outlines of the changes.
[1] Scheduled law amendments
Listed below are legal changes scheduled at this moment. Some of them will be implemented on different dates, depending on company sizes. In some cases, employers will have to revise their work rules and file the changes with the labor office. Please check the list carefully and make preparations as needed.
|
Effective month |
Contents |
|
2020 Jun |
Obligation to set a policy to prevent power harassment (large companies) Addition of items to be disclosed concerning the promotion of women’s participation in the workplace (Business owners with more than 300 employees) |
|
2021 Jan |
Hourly use of nursing-care leave and caregiver leave |
|
2021 Apr |
Implementation of equal-pay-for-equal-work system (small- and medium-sized companies) Obligation to make an effort to secure job opportunities for workers up to 70 Obligation to disclose the ratio of mid-career hires (Business owners with more than 300 employees) |
|
2022 Apr |
Obligation to set a policy to prevent power harassment (small- and medium-sized companies) Change in employment insurance requirement for people over 65 who are employed by two or more companies Formulation of an action plan based on the Act on the Promotion of Women’s Participation in the Workplace (Business owners with more than 100 employees) |
|
2023 Apr |
Application of 50% additional wages for overtime exceeding 60 hours per month (small- and medium-sized companies) |
|
2025 Apr |
Lowering of the ceiling of allowances for continued employment of elderly workers |
|
2020 Sep |
Revisions to certification and compensation rules of industrial accidents for workers under dual employment |
[2] Key points of law amendments
1. Obligation to set a policy to prevent power harassment
With cases of workplace harassment on the rise, companies will become required to establish rules to prevent power harassment in the workplace. They have to set forth a policy, as those against sexual or maternity harassment, and ensure that the policy will be completely understood by their employees, including managerial personnel. Specifically, the law will require companies to include their policy on disciplinary action against violators of power harassment rules and details of the disciplinary action in their work rules. The amendment will be enforced in June 2020 for large companies, and April 2022 for small- and medium-sized companies, who will be required to make an effort until March 31, 2022.
2. Addition of items to be disclosed concerning the promotion of women’s participation in the workplace (Business owners with more than 300 employees)
On June 1, 2020, a law amendment regarding information disclosure took effect, requiring business owners with more than 300 regularly employed workers to choose at least one item from each of the two categories: “Provide career opportunities for female workers” and “Improve the employment environment to support the work-life balance,” and disclose the efforts they are making on at least two items.
3. Hourly use of nursing-care leave and caregiver leave
Currently, leave of absence to care for a sick child or a family member in a condition requiring nursing care can be taken by half-day unit at the shortest. From January 2021, all workers (*) will become entitled to take such leave by the hour. As a basic rule, workers will be allowed take such leave at the beginning or at the end of their work hours, but employers may also permit their employees to leave during work hours.
* In the case of workers whose duties prohibit them to take hourly leave, the company may sign a labor-management agreement and exclude them from applicable employees.
4. Implementation of an equal-pay-for-equal-work system (small- and medium-sized companies)
Implementation of an equal-pay-for-equal-work system was enforced on large companies on April 1, 2020, under the Act on Employment of Part-time and Fixed-time Workers. The same rule will be applied to smaller firms from April 2021. The legal change is aimed to ensure regular and non-regular workers will receive equal treatments, including wages. Specifically, companies are required to compare the treatments for regular and non-regular workers and eliminate unreasonable gaps.
5. Obligation to make an effort to provide job opportunities to workers up to 70
With the aim to support elderly people who wish to continue working to fully demonstrate their abilities and play more active roles in society, making efforts to create job opportunities for workers up to 70 of age will be an obligation of companies from April 2021. Among the proposed steps that firms can take are raising of mandatory retirement age, introduction of continued employment system, abolition of mandatory retirement system, as well as the use of other forms of employment, such as commission contracts or participation in social contribution projects.
6. Obligation to disclose the ratio of mid-career hires (Business owners with more than 300 employees)
From April 2021, business owners with more than 300 regularly employed workers will be required to publicize the ratio of mid-career hires. This measure is aimed to disclose more information about the workplace and facilitate job matching of mid-career job applicants and companies.
7. Change in the requirement of employment insurance for people over 65 who are employed by two or more companies
Employees who work 20 hours a week are entitled to the employment insurance, but people working for more than one company are not necessarily covered by the insurance, if the number of work hours at each company does not meet the requirement. The rule will be changed to enable workers aged 65 or older who work for multiple companies to be enrolled in the employment insurance program, if their combined work hours per week are at least 20 hours.
8. Formulation of an action plan based on the Act on the Promotion of Women’s Participation in the Workplace (Business owners with more than 100 employees)
As of April 1, 2022, companies with more than 100 regularly employed workers will be required to formulate an action plan set forth in the Act on the Promotion of Women’s Participation in the workplace. Currently, companies with over 300 employees are subjected to the rule. With this change, smaller firms will also be required to develop an action plan, submit the plan to a relevant administration office and prepare for information disclosure by the enforcement date.
9. Application of 50% additional wages for overtime exceeding 60 hours per month (small- and medium-sized companies)
While large companies are required to pay their employees 50 percent additional wages for monthly overtime of over 60 hours, the rule has not been implemented on small- and medium-sized companies. As this moratorium will be lifted in April 2023, smaller firms will have to revise their work rules (wage rules), the overtime calculation method in their attendance management systems or the setting of payroll calculation systems. In some cases, major systematic changes may be required.
10. Lowering of the ceiling of allowances for continued employment of elderly workers
If an employee’s salary has decreased by a certain amount compared with the salary he/she received at the age of 60, the employee is provided with an allowance under the system for continued employment of elderly workers. This system was aimed to maintain motivated elderly workers in the workplace, while supporting businesses to keep employees until they turn 65, but due to changes in the social environment, the system’s role has been losing significance. Employment of workers up to 65 has become a common rule and companies are now encouraged to provide job opportunities to workers up to 70. In consideration of this trend, the ceiling of the allowance rate will be lowered from 15% to 10% from April 2025.
11. Revisions to certification and compensation rules of industrial accidents for workers under dual employment
While the government has begun encouraging companies to allow their employees to have a subsidiary or concurrent job, providing an adequate safety net for people under dual or triple employment is becoming an urgent issue. Changes will be made in relevant laws, e.g. calculation of a daily wage for industrial accidents based on combined salaries paid by multiple companies, or widening of the coverage of the industrial accident insurance. The revisions will be enforced on September 1, 2020.
More details on these amendments are expected to come from the authorities. It is also possible that other law revisions will be announced in the future, but companies should examine the available information and start making feasible plans to comply with the new rules.
Reference links (Japanese only)
Ministry of Health, Labour and Welfare “Prevention of workplace harassment (sexual harassment, harassment related to pregnancy, childbirth, childcare leave, etc., power harassment)
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/koyoukintou/seisaku06/
Ministry of Health, Labour and Welfare “Prevention of workplace harassment, “Act on the Promotion and Career Advancement in the Workplace”
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/0000091025.html
Ministry of Health, Labour and Welfare, ”Information about the laws on childcare leave and caregiver leave)
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/0000130583.html
Ministry of Health, Labour and Welfare, Special site for “equal pay for equal work”
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/0000144972.html
Ministry of Health, Labour and Welfare, “Amendment to the Act on Stabilization of Employment of Elderly Persons – Employment opportunities for workers up to 70” https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/koyou/koureisha/topics/tp120903-1_00001.html
*The contents are based on the laws and regulations as of the time this document was created.
