While many companies adopt a flexible working hour system with multiple shift patterns, there have been legal cases where the system was determined invalid, since not all the shift patterns were described in the employment rules. This article explains 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 often managed on a monthly or yearly basis. In the case 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 date of the period
3. Applicable working days, daily working hours
“1. Scope of applicable employees” means that companies must explicitly indicate the workers the flexible working hour system is applied to. Regarding “2. Applicable period, starting date 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.” As for “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 schedules or a company calendar.
In the case a monthly schedule is created for shift workers, the company must determine all the shift patterns, including the start and end times, how to arrange the shift patterns, the procedure for creating the shift schedule and the method of notifying workers of the schedule.
[2] Managing a flexible working hour system
Some companies only describe the patterns that are mainly used in the employment rules, even though there are other patterns. In some cases, the employment rules include all the patterns, but the descriptions are not accurate when checked against the actual situation.
In the legal case where a flexible working hour system was deemed 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 invalid, 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, companies should make sure that all the shift patterns are explained in their employment rules and add descriptions if needed. Please also ensure that employees are not working under shift patterns that are not included 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.
