April 2024 Laws Regarding Discretionary Work Systems in Japan

Japan Employment Law Peculiarities 3: Are you ready for the changes to the Discretionary Work System laws coming into effect on April 1, 2024?

If your Japan company uses a discretionary work time system in Japan (and most do), then be prepared for amendments to the laws concerning those laws. The discretionary work time system allows companies to predetermine the times certain classification of exempt employees work (such as according to a work schedule), and thereby forego the requirements of recording actual work time.

Under amendments to the law, consent of employees for the system will be mandatory. Consent was not previously required. Employers must also treat those who decline to consent equally as those who do not consent. No retaliation allowed. Employees must also be allowed to withdraw consent to exit the system, and employers have strict duties about establishing a workable system of procedures and keeping proper records.

New work duties qualifying employees for the Discretionary Work System will also be added to expand the scope of eligible employees.

Changes, such as the procedure involved, the record keeping requirements, and changes to the applicable wage and evaluation system, must be passed by a resolution of the labor management committee. Periodic reports to the Labor Standards Inspection Office will also be required.

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