The government provides career advancement subsidies to support companies that reemploy fixed-term workers as regular employees or implement measures to improve their treatment. Since the “regular employment course” was established in the subsidy program on Nov 29, 2023, this article looks at details of the new course.
[1] “Regular employment course” of the career advancement program
Under the regular employment course, subsidies are given to companies that have rehired fixed-term workers as regular employees, based on the scheme described in their employment rules. The course is also applied to companies that have rehired permanent non-regular workers as regular employees or regular employees with conditions (employees with limited place of work or duties, short-time regular employees, etc.)
[2] Program improvements
The labor ministry has enhanced the program on the following four points.
1. Revision in the subsidy amounts
As the subsidy period has been extended from six months to twelve months, the total amount of subsidy for a fixed-term worker rehired as a regular employee has been increased from 570,000 yen for six months (one term, 427,500 yen for large companies) to 800,000 yen for twelve months (two terms, 600,000 yen for large companies.) The total amount of subsidy for a permanent non-regular worker who became a regular employee has also been raised from 285,000 yen for six months (one term, 213,750 yen for large companies) to 400,000 yen for twelve months (two terms, 300,000 yen for large companies.)
2. Easing of requirements for fixed-term workers
In the case a fixed-term worker became a regular employee, the subsidy was given if the total period of fixed-term employment was “six months or more and no longer than three years.” With the latest revision, the employment period has been changed to “six months or more” with no upper limit. In the case a fixed-term worker who has been employed for over five years becomes a regular employee, the amount of subsidy is the same as the case of permanent non-regular employee.
3. Additional subsidy for companies introducing the system
Companies that have newly adopted the system for changing the status of non-regular workers to regular employees may receive 200,000 yen (150,000 yen for large companies.) This subsidy may be applied only once.
4. Additional subsidy for diverse employment system
The subsidy for companies that have newly introduced a diverse employment system (employees with limited place of work or duties, short-time regular employees, etc.) and have changed the status of non-regular workers to such employees has been increased substantially from 95,000 yen (71,250 yen for large companies) to 400,000 yen (300,000 yen for large companies.) This subsidy may also be applied only once.
To receive the career advancement subsidies, companies are required to submit a career advancement plan to the labor office in the area in advance. The form has been simplified with checkboxes. The authorities are also planning to publish Q&A. Please check the latest information.
[Reference]
Labor Ministry, “Improved career advancement subsidy program, ‘regular employee course’”
https://www.mhlw.go.jp/content/11910500/001172971.pdf
*This article is based on laws and regulations as of the posting date.
