While many companies adopt a flexible working hour system with multiple shift patterns, there is a growing number of legal cases with the system considered invalid, since not all the shift patterns are described in the employment rules. This article covers important points in introducing and managing a flexible working hour system.
[1] Introducing a flexible working hour system
In a flexible working hour system, work hours are commonly managed on a monthly or yearly basis. If a company introduces a monthly flexible working hour system, all the following items must be included in the employment rules.
1. Scope of applicable employees
2. Applicable period, starting day of the period
3. Applicable working days, daily working hours
1. Scope of applicable employees: This means companies must explicitly indicate which workers the flexible working hour system is applied to.
2. Applicable period, starting day of the period: Companies must set a specific period and the starting day of the period for managing the system; for example, “Average weekly working hours should be no more than 40 hours during a monthly period starting on the first day of each month.”
3. Applicable working days, daily working hours: Companies are required to set working hours for all the working days in the applicable period described in 2, by using shift tables or a company calendar.
In the case a schedule is made for shift workers each month, the company must decide the start and end times, how to arrange the shift patterns, the procedure for making the shift schedule and the method of notifying workers of their schedule for all the shift patterns in advance.
[2] Managing a flexible working hour system
Some companies only describe shift patterns which are mainly used in the employment rules with other shifts omitted. In some cases, the employment rules include all the shifts, but the descriptions do not accurately reflect the actual situation.
In a legal case where a company's flexible working hour system was considered invalid, the company only described four shift patterns by mentioning “as a basic rule.” The court determined that the company’s flexible working hour system was improper, citing that the employment rules do not satisfy the requirement, regarding “specific week” or “specific day” set forth in the Article 32-2 of the Labor Standards Act.
Although this is just one example, employers must confirm all the shift patterns are described in their employment rules and add descriptions if needed. Please also ensure that employees are not working under shift hours not explained in the employment rules.
Under a flexible working hour system, companies are not allowed to change working days or working hours on specified days at their discretion, although there have been cases where companies made such changes for their convenience.
Please check if the system is being managed appropriately and make corrections if any problems are found.
