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2013年3月22日 金曜日

MASHR CONSULTING NEWSLETTER​: January 2013

We are sending this email to our clients and seminar participants as well as those
with whom we have exchanged business cards. If you do not wish to receive email from us,
please let us know by sending an email to mashr-hr@mashr.co.jp.


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About measures taken in regard to reforms to the Elderly Employment Security Act
The reform bill for the Elderly Employment Security Act came into existence in the Diet on August 29 of last year, and after April 1 2013 it will have a major impact on the retirement age of companies.

1- Before the reforms, there was an obligation to take one of the following steps in regard to business owners who have set a retirement age of under 65, in order to ensure employment up to the age of 65.

(1) Raising the retirement age
(2) Introducing a continued employment system (if a standard was set by the labor management agreement, then it could be possible to treat as out-of-target all persons who want to participate)
(3) Abolition of definition of retirement age
 
2- Contents after the reform (implementation date: April 1, 2013):

(4) It is not possible to limit the persons who are target of the continued employment system as per the above (2). After retirement age, all persons who want to participate must be employed until the age of 65. However, so that there is not excessive burden to the company, guidelines are defined so as to remove from target persons who have extremely bad work attitudes and/or physical/mental health.
(5) Transitional measures
At present, if there are standards in place to limit the persons who are targets of the continued employment system, then transitional steps will be put in place in order to continue to use those standards in a shape of linkage with the rise in the starting age for receiving the old age welfare pension.
(6) Expanding the range of companies which employ person that are targets of the continued employment system
The range of companies that employ persons that are targets of the continued employment system will be expanded to include subsidiary companies and affiliate companies as well as parent companies. (The range of subsidiaries and affiliate companies is defined by the Ministry of Health, Labour and Welfare with reference to the definitions in the Companies Act and suchlike.)
(7) The name of the company that violates its duties will be announced publicly
Companies which do not comply with the counsel regarding duties of steps to be taken to ensure elderly employment will have their company name announced publicly.
(8) Formulation of guidelines regarding the implementation and application of steps taken to ensure elderly employment    
The age of elderly persons who are targets of the increase in employment opportunities will be increased to 65.

(Note: This reform does not make it compulsory to raise it to the retirement age of 65.)

3- Setting of labor conditions which are compatible with the reforms

What is continued employment of "all persons who wish to participate"?

* For persons who wish to continue their employment, labor conditions such as duties that are suitable to that person, work hours, wages and suchlike are presented by the company, and if both parties consent via the person's agreement to those labor conditions, continued employment will be entered into.
In regard to the labor conditions of continued employment, these do not have to comply exactly with the wishes of the worker. Fundamentally, continued employment should occur when the business owner presents labor conditions (such as duties, work hours and wages) within a reasonable range of discretion, and the worker consents to these. 
Of course, in terms of public stance, while regulating it as "continued employment for all persons who wish to participate", ignoring the techniques and skills of the person in question, arbitrarily presenting them with wages that are too low, or requiring them to transfer is not what "continued employment for all persons who wish to participate" is about.
In view of the circumstances of your company, and in accordance with necessity, a balance should be attempted with the public pension and various benefit amounts when setting out labor conditions.

4- Measures that should be taken by March 31

For companies which set the age of retirement at 60, if there is no labor agreement in place in regard to continued employment, you must create one by March 31 in order to ensure that it is possible to utilize the transitional measures of (5).
In order to make it possible to treat employees whose work attitude or physical/mental health is very bad (as per (4)) as out of target, there is a need to set this in the rules of employment. If the rules of employment are not yet authored, or if the way of defining the reasons for employment in the rules of employment are considered insufficient, then there is a need to review the rules of employment by March 31.

In regard to the system, if you have any enquiries about reviewing the rules of employment, or anything is unclear, please feel free to contact us.


MASHR Consulting is continuously providing information and advice with regard to the above matters.
If you have any questions, please free to contact me.

Thank you,

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Yumiko Kamioka
Labor and Social Security Attorney, USCPA
MASHR Consulting Co., Ltd.
24-8-805 Yamashita-cho, Naka-ku
Yokohama City, Kanagawa, Japan
Tel: 81-45-212-0681
Fax: 81-45-212-0682
E-mail: mashr-hr@mashr.co.jp
Website: http://www.mashr.co.jp

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投稿者 株式会社マーシャル・コンサルティング | 記事URL

2013年3月22日 金曜日

MASHR CONSULTING NEWSLETTER​: May 2012

New rules on fixed-term employment contracts

A Bill for Partial Amendments to the Labor Contract Act was submitted to the Diet on March 23.
A central feature of the bill is to obligate a company to grant a worker permanent status at his/her
request if the worker has been employed on repeated fixed-term renewable contracts for a period exceeding five years.
Key points of the draft bill are as follows:
 
1. Conversion of a fixed-term employment contract to an indefinite-term contract
 A set of regulations is introduced under which, when a fixed-term employment contract
 has been repeatedly renewed for a period exceeding five years,
 it shall be converted to a permanent contract at the request of the worker concerned.
 However, when there is an interval ("cooling period") of six months or more between contracts,
 then, in principle, the earlier contract period is not counted.

2. New provision on contract non-renewal
 If either (1) or (2) below is applicable, a worker's request for renewal of an employment contract
 (non-renewal) shall be deemed to have been accepted by an employer for employment on terms identical
 to those under the previous fixed-term employment contract, to the extent a refusal
 for such renewal lacks objectively reasonable grounds and is not considered to be appropriate in general societal terms.
   (1)  The conditions of employment through the repeated renewal of fixed-term employment contracts
     are not essentially different from an employment contract with an indefinite term.
 (2) An employee is considered to have a reasonable expectation that a fixed-term employment
     contract will be renewed after the expiry of its term.

3. Prohibition of unreasonable working conditions on account of a fixed-term contract
 When there are differences between the conditions of workers on fixed-term contracts
 and workers on permanent contracts, such differences shall not appear unreasonable after
 variations in the type of work and the allocation of work have been taken into account.

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MASHR Consulting is continuously providing information and advice with regard to the above matters.
If you have any questions, please free to contact me.

Thank you,

**********************

Yumiko Kamioka
Labor and Social Security Attorney, USCPA
MASHR Consulting Co., Ltd.
24-8-805 Yamashita-cho, Naka-ku
Yokohama City, Kanagawa, Japan
Tel: 81-45-212-0681
Fax: 81-45-212-0682
E-mail: mashr-hr@mashr.co.jp
Website: http://www.mashr.co.jp

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投稿者 株式会社マーシャル・コンサルティング | 記事URL

 

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