The discretionary work system recognized by the government includes two schemes: the type for specialized professions (hereinafter, “the specialized profession type”) and the type for planning services (hereinafter, “the planning type”). According to 2023 survey on working conditions, 2.1% of the companies adopt the specialized profession type, while 0.4% are using the planning type. With the ratio of companies using these systems still small, the government is planning to make major changes in the rules on April 1, 2024. This article looks into details of the changes.
[1] Specialized profession type
The specialized profession type is adopted when individual workers are allowed to decide how to carry out their assigned work, due to the nature of the duties. Applicable duties are determined by considering whether it is difficult for the company to give specific instruction on how to proceed with the work or allocate time and designated by the labor-management agreement. Workers who carried out such duties are considered to have worked for the hours described in the labor-management agreement.
From April 1, 2024, M&A adviser will be added to applicable duties. In adopting the specialized profession type, a company must obtain concerned workers’ agreement. In doing so, the company is required to explain the outline of the system, including the provisions of the labor-management agreement, details of the wage and evaluation systems, and the treatment in the case a worker does not agree. The labor-management agreement needs to include rules regarding the following matters.
- Obtaining of applicable workers’ agreement
- Prohibition of adverse treatment in the case a worker did not agree
- Procedure for withdrawing an agreement
- Keeping of records about the agreement and withdrawal for the effective period of the labor-management agreement and three years thereafter.
[2] Planning type
The planning type is applied to duties concerning planning, plotting, studying and analyzing of company operations. It is adopted when the workers are allowed to decide how to carry out the assigned work, due to the nature of the duties.
Applicable duties are determined by the labor-management committee by considering whether it is difficult for the company to give specific instruction on how to proceed with the work or allocate time. The committee’s resolution must be submitted to the Labor Standards Inspection Office. Workers who carried out such duties are considered to have worked for the hours pre-determined by the labor-management committee.
In adopting the planning type, the company must obtain relevant workers’ agreement. From April 1, 2024, companies will also be required to set the procedure for withdrawing the agreement. The following three items will also be added to the matters to be determined by the labor-management committee.
- Procedure for withdrawing an agreement
- When the wage and evaluation systems for applicable workers is changed, obligation to provide explanation to the labor-management committee regarding the change
- Keeping of the record of the agreement and withdrawal for the effective period of the resolution and three years thereafter
There are also other small changes to the systems. Companies introducing or continuing to use discretionary work systems after April 2024 should start preparations for the changes as early as possible.
[Reference]
Labor Ministry, “Outline of discretionary working systems”
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/roudoukijun/roudouzikan/sairyo.html
*The information is based on laws and regulations as of the date of this article.
