Keeping up with the latest information about law amendments is essential for labor and HR management. The government has been enforcing a number of amendments to labor laws and regulations in recent years. This article focuses on law amendments scheduled over coming years.
[1] Important law amendments
The table below shows major amendments scheduled at present. Companies must check the planned changes and make preparations, e.g., revise the form of employment notice. If the ratio of workers with disabilities does not meet the legal standard, hiring of disabled workers must be increased before the legal ratio is raised in April 2024 and July 2026.
Table: Scheduled law amendments
|
Enforcement time |
Details |
|
April 2024 |
Abolishment of exclusion of overtime cap for construction workers, drivers, physicians, etc. |
|
Change in the hours of duty and rest period of truck, bus and taxi drivers |
|
|
Increase in the ratio of workers with disabilities to 2.5% |
|
|
Special provision regarding the count of short-time workers with disabilities (workers with a severe physical disability or intellectual disability and workers with a mental disorder or disability whose weekly work hours are at least 10 hours and less than 20 hours) in the employment rate |
|
|
Addition of items that must be explicitly indicated in the employment notice (place of work, scope of change in duties, matters regarding contract renewals, possibility of change to non-fixed-term contract and conditions after the change), requirement of advance explanation when the limits to fixed-term contracts’ total period and the number of renewals are set or lowered |
|
|
Addition of items to be explicitly indicated in recruiting (scope of change in the place of work or duties, standards for renewing fixed-term contracts |
|
|
Changes in the requirements of discretionary workers, the procedure and report period; introduction of health and welfare measures, introduction of complaint handling measures, etc. |
|
|
Revision in the payment methods of monetary adjustment and rewards for the employment of disabled workers |
|
|
Oct 2024 |
Expansion of the application of social insurance (weekly work hours of 20 hours, etc., companies with more than 50 workers) |
|
April 2025 |
Reduction in the rate of the continuous employment benefit for the elderly to 10% |
|
Reduction of the exclusion rate of the employment of disabled workers |
|
|
July 2026 |
Increase in the legal employment ratio of disabled workers to 2.7% |
[2] Expansion of the scope of employees covered by social insurance
Among the changes expected to have a major impact on companies is the expansion of the scope of workers required to be registered in social insurance. From October 2024, workers who work 20 hours or more per week and meet other conditions at companies with more than 50 employees covered by the Employees’ Pension Insurance will be required to become registered in social insurance. If an applicable company signs a one-year contract with a worker with weekly work hours of 25 hours in April 2024, the worker is not required to be enrolled in social insurance at the beginning of the contract, but the enrollment becomes mandatory after October 1, 2024.
The Labor Ministry has put together a package of measures to support companies creating an environment where employees can work without worrying about the income barriers. Since the issue could affect workers significantly, companies are advised to take necessary measures without delay, including the use of the government package.
[Reference]
Labor Ministry “The rules on clear explanation of working conditions will be changed from April 2024”
https://www.mhlw.go.jp/stf/newpage_32105.html
Special website for widened scope of mandatory social insurance registration
https://www.mhlw.go.jp/tekiyoukakudai/
Income barrier support package
