Some companies face a situation where dismissal of an employee becomes necessary, because the employee has caused a serious problem or has received instruction repeatedly about poor attendance or performance but showed no improvement. Since dismissal is an act to make an employee out of work, it can easily develop into a big trouble. This article explains about dismissal procedures to be followed by companies.
[1] Dismissal and advance notice of dismissal
Dismissal is an act by a company to end employment contract unilaterally. Before laying off an employee, a company is required to notify the employee at least 30 days prior to the dismissal date (“an advance notice of dismissal”), or pay more than 30 days of the employee’s average wage (“dismissal notice payment”). Companies are allowed to combine the advance notice and dismissal notice payment. In that case, the period of advance notice can be reduced by the number of days for which the employee’s average wage is paid. For example, a company may issue an advance notice 10 days before the dismissal date by paying an average wage for 20 days.
[2] Important points in issuing an advance notice of dismissal
Since an advance notice of dismissal becomes valid when the company’s intention is conveyed to the employee, it is important to confirm when the employee understood the company’s intention. The notice may be given either verbally or in writing. The company’s intention is deemed to have become understood when the notice is given verbally or when the written notice is delivered to the employee and become accessible. Since spoken communication without evidence can lead to trouble, it is advisable to hand a written notice even in the case of verbal notice.
[3] Important points in offering dismissal notice payment
When a company fires an employee immediately without an advance notice, payment of at least 30 days’ average wages is required. This must be done at the time when dismissal is notified to the employee. In the case a company combines an advance notice and dismissal notice payment, the payment must be done by the dismissal date.
Above are the procedures for dismissing employees, but please note that companies are not allowed to fire employees whenever they want at their discretion.
Dismissal is considered invalid if it is objectively unreasonable and is not considered justifiable under social conventions. Therefore, the reason for the dismissal or the degree of the problem is important in determining whether the dismissal is valid. Dismissal is considered acceptable only when a company becomes unable to continue employment of the worker. For this reason, it is important for companies to give employees instructions when they recognize questionable behaviors or problems in their work performance or efficiency, and keep records of the measures taken. Dismissal is not always allowed even if companies follow the necessary procedure.
[Reference]
The Ministry of Labour, “Laws and rules regarding labor contract (signing a contract, changing labor conditions, dismissal, etc.)
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/koyou_roudou/roudoukijun/keiyaku/index.html
*The information is valid as of the date of this article.
