Companies are required to specify working conditions to all employees at the time of signing a labor contract or renewing a fixed-term labor contract. Currently, it is considered sufficient to explain the place of work and details of duties at the time of hiring. Starting in April 2024, however, companies will be required to indicate the scope of future changes in the place of work or duties. This article explains how to describe these conditions and important points.
[1] How to describe a scope of change in the place of work and duties
“The scope of changes in the place of work and duties” means possible changes in the place of work or assigned duties during the period of employment contract. Companies are required to indicate changes that might arise in the future. How to describe the terms is different according to whether the place of work or duties are limited or not. Following are some examples.
1. Place of work and duties are not limited
Place of work
(At the time of hiring) ○○ Sales Office
(Scope of change) Sales offices designated by the company
Duties
(At the time of hiring) Duties related to ●●
(Scope of change) Duties designated by the company
2. Place of work or duties are partly limited
Place of work
(At the time of hiring) ○○ Sales Office
(Scope of change) Sales Offices in ◇◇ prefecture
Duties
(At the time of hiring) ●● planning
(Scope of change) □□ or △△ planning in the head office
3. Place of work or duties will not change
Place of work
(At the time of hiring) ○○ Sales Office
(Scope of change) ○○ Sales Office
Duties
(At the time of hiring) ●● planning
(Scope of change) ●● planning
In many cases, regular employees apply to the case 1, “Place of work and duties are not limited.” Aside from describing as “sales offices or duties designated by the company,” companies may attach a list, describing the scope of changes. To avoid trouble later, it is crucial to specifically indicate a scope of change in the place of work or duties and gain a common understanding about this matter between the labor and the management.
[2] Time of application
The new rule will be applied to labor contracts concluded on April 1, 2024, or after. If labor contracts for employees joining on April 1, 2024, are signed on March 31, 2024, or before, the old rule will be applied, therefore indication of scope of change is not required.
However, applying the new rule before March 31, 2024, is desirable to support employees’ understanding about their labor conditions.
The Labor Ministry has issued a pamphlet about how to describe a scope of change in the place of work or duties, using various examples. Companies should examine their notice of labor conditions and make necessary changes in the template ahead of time.
[Reference]
Labor Ministry, “The rule on clear indication of labor conditions will be changed from April 2024”
https://www.mhlw.go.jp/stf/newpage_32105.html
“Changes in the rule on explicit description of labor conditions – please make preparations early”
https://www.mhlw.go.jp/content/11200000/001156048.pdf
*The contents are based on laws and regulations as of the date of this article.
