Companies normally use a template when they notify work conditions to newly hired employees. It is common, however, that the template has not been updated according to latest laws, or a template for part-timers does not cover all necessary items. This article looks at what must be included in a work condition notice.
[1] Items that must be clearly indicated
Even though a verbally-concluded labor contract is considered valid, the Labor Standards Act requires employers to indicate work conditions explicitly in writing to avoid trouble caused by misunderstanding. Following are the items that must be included in a work condition notice. Items 4-2 to 11 are not needed if companies do not have relevant rules.
1. Matters concerning the term of labor contract
1-2. Matters concerning standards for the renewal of fixed-term labor contracts (If there is an upper limit to the total employment period or the number of contract renewals, the upper limit)
1-3. Matters concerning the place of work and duties to be assigned (including the scope of change in the place or work or the assignments.)
2. Matters concerning starting hour and closing hour of work, the possibility of work exceeding scheduled working hours, rest period, days off, leave of absence, and the change in shifts in cases where workers work in two or more shifts.
3. Matters concerning methods of decision, calculation, and payment of wages (except retirement allowances and temporary wages), the dates for closing account for wages and for payment of wages, and increases in wages
4. Matters concerning retirement (including grounds for dismissal)
4-2. Matters concerning the scope of workers covered, methods of determination of retirement allowances, calculation and payment of retirement allowances, and the dates for payment of retirement allowances
5. Matters concerning wages paid in special circumstances (except retirement allowances), bonuses, those wages listed in each item of Article 8, and minimum wages
6. Matters concerning meal expenses, supplies for work to be borne by workers, and any things to be covered
7. Matters concerning safety and health
8. Matters concerning vocational training
9. Matters concerning accident compensation and support for injury and illness outside the course of employment
10. Matters concerning commendation and sanction
11. Matters concerning administrative leave
[2] Recent law amendments
Among the above items, 1-2 and 1-3 have been revised in accordance with law amendments in April 2024. Ideally, companies should reexamine their work condition notice whenever there are law amendments, but many companies fail to do so, particularly if they have not hired new employees for a long time. Among recent changes, below items need particular attention.
1. The upper limit to contract renewals
Timing: At the time of signing or renewing a contract
Required information: Whether there is an upper limit to contract renewals (total length of the fixed-term contract period or the number of renewals) and details if there is a limit
2. The possibility of a change to non-fixed-term contract; work conditions after a contract change
Timing: When the total employment period exceeds five years after multiple contract renewals
Required information: Whether a request for a change to a non-fixed-term contract is possible; details of work conditions if they are different from those for fixed-term contract
3. Scope of change in the place of work or assignments
Timing: At the time of signing and renewing of all employment contracts, including those for a fixed term
Required information: Scope of change in the place of work or assignments
[3] Easily overlooked matters
In the case of workers applicable to the labor laws for part-time and fixed-term workers, four items below must be added to the notice.
1. Whether there will be pay increases
2. Whether they will be paid retirement allowances
3. Whether they will be paid bonuses
4. The department/persons to consult with about part-time or fixed-term workers’ employment management
Particularly, companies often fail to include the item 4 in a work condition notice. Companies must indicate who will provide consultation on matters regarding improvements in part-timers’ work conditions or respond to complaints.
Items that must be indicated in a work condition notice may be different, depending on whether it is given to a regular employee or a part-timer, or whether the worker has been employed for over five years after multiple contract renewals. Companies should prepare forms they might use by making sure all necessary items are included.
[Reference]
The Ministry of Labour, “Work conditions must be specified at the time of hiring”
https://www.mhlw.go.jp/bunya/roudoukijun/faq_kijyunhou_4.html
“Changes in the rules on the indication of work conditions from April 2024”
https://www.mhlw.go.jp/stf/newpage_32105.html
*The information is based on laws and regulations as of the date of the original article.
