Current Labor Issues in Japan
1- Probation Period
If a company hires an employee through a head hunting service, there is a risk that the employee may fail to meet company expectations. How to cope with that case in your company?
Company has a wide range of freedom as to recruitment of applicant. However, once company hires an employee, to terminate the contract, you have to be careful about the approach. You need to have reasonable grounds to terminate the contract. Otherwise such termination will be treated as wrongful dismissal.
To stipulate working conditions in the contract and employee handbook is therefore, important.
2- Overtime Exemption and Unpaid Overtime Allowance
In Japan, unpaid overtime work is becoming a severe social problem. The main reason of this, employee those who are legally exempt from overtime allowance is limited compared to other countries especially to the United States. Those who are exempt from overtime allowance are strictly limited to managerial position such as department manager.
In the company, assistant manager is often treated as managerial position, that’s why some companies don’t pay overtime allowance to them. However, the scope of managerial position stipulated in Labor Standards Law is quite limited. Therefore, unpaid overtime problem is revealed by audit by Labor Standard Inspection Office. Employee becomes whistle blower when they are aware of such situation. For example, shop manager of Japan MacDonald took legal action to Tokyo District Court and won a case to the company in January 28th, 2008.
This is one of example why we need to understand labor law and labor practice when we prepare employment contract and employee handbook.
We’ll suggest practical working hour system for employee according to nature of each assignment and develop company rules and necessary forms to authority complied with labor laws.
(1) How to proceed developing company rules
We’ll develop company rules by giving appropriate advice about employment/working condition management according to the actual nature of each company.
To do that, we’ll implement job analysis by having an interview and complete a questionnaire about your company’s situation.
Following is the schedule, from accepting the request until finalizing our services.
- 1) Feasibility Study using Questionnaire
↓ - 2) Develop draft of each rules
↓ - 3) Having interviews for job analysis
↓ - 4) Completing final version of employee handbook, e.t.c.
↓ - 5) Submission of necessary forms to the Labor Standard Inspection Office
(2) Consulting about human resource management
I am able to give advice on the following matters in the form of consultation, guidance, planning and implementation for clientele.
| Employment management | Recruiting & employment, the optimum staffing/transfer (detachments and personnel roster transfers), service regulations and sanctions, resignation & dismissal, employment management of temporary staff/contractors/part-timers. |
|---|---|
| Working conditions | Working hours (computation of working hours, modified working hours, flexible time, discretionary work time system, etc), paid annual leave, child care & family care |
| Employee-welfare arrangement | Obligatory welfare(e.g. labor and social insurance), non-obligatory welfare(e.g. housing, health care, medical services and insurance |
| Occupational safety & health | Development and enhancement of safety and health management system and management of worker's health |
| Employment of senior person | Retirement and continuous employment systems, education for preparation of retirement, early retirement plans |
(3) Submitting necessary documents involving social security to authorities
- Admission/secession to/from labor insurance and health & welfare pension insurance, submitting documents to authorities regarding employment/retirement for workers
- Annual revision of premiums for health/welfare pension insurance & amendment of monthly standard remuneration, final return of labor insurance premiums
- Claiming benefits of worker's accident compensation, benefits of health insurance (e.g. childbirth allowance, etc)
- Other necessary procedures
