April 2024 Japan Laws Regarding Hiring Notifications

Japan Employment Law Peculiarities 2

Are you ready for the changes to Japan's Labor Standards Act going into effect on April 1, 2024?

The amendments add three new requirements that employers with employees in Japan must follow.

First, they must notify employees of the scope of possible changes to their workplace and duties that may occur during their employment at the time of hire. The law requries six terms that must be conveyed to employees upon hire: 1) the period of the employment, 2) any criteria for renewing a fixed term agreement, 3) the workplace and duties of the employee, 4) start and end times for work, whether the employee may need to work overtime, shift changes, and other matters concerning work times and shifts, 5) the method of determining and calculating wages, including the closing time of pay periods, the day wages are paid, and any rules related to wage increases, and 6) any policies related to resignation and termination. Failure to comply may result in a fine in addition to liability to the employees.

Second, the new amendment requires all employees to be notified of the "scope of potential changes" to their workplaces and duties. Previously, identifying the workplace and duties was sufficient. Now, employers must narrow the scope of potential changes in writing to employees. This is incorporated into the agreement with the employee and may not be unilaterally altered. While on one hand, it creates more limitations on the ability of employers to freely move employees, on the other hand, it allows employers to more easily demonstrate that the employer tried to move the employee within the scope of that agreement but could not. This may allow for easier terminations in some cases.

Third, for employees with fixed term contracts, the company must provide them with advance notice of the maximum number of contract renewals and total contract period possible. The government also places more difficult restrictions on employers regarding reducing the number or renewals later. Also, since employees who have continued to work for five or more years have the right to convert to indefinite term employment (so-called "lifetime employment"), employers will now be required to explain this right to employees who meet the criteria and provide other explanations as defined in the new ordinances.

For assistance in Japan legal compliance, contact the Japan and US employment law experts at www.japan-employment.com We understand Western and Japanese employment law compliance and explain them in a way you can understand and follow. We are your trusted advisors for Japan employment compliance.