A Look at the Law

Below are some of the important articles from the relevant Japanese laws. They are reproduced here for reference purposes only. Many employers and managers are not familiar with the labour laws. However, some are, and simply ignore them. It is unlikely that you will be able to make your employer obey the law simply by bringing it to their attention. It is usually only through the relationship with the union that an employer can be made to understand the need to respect the laws.

Under Art. 3 (Equal Treatment) of the Labour Standards Law, an employer cannot engage in discriminatory treatment with respect to wages, working hours or other working conditions by reason of the nationality of any employee.

Under Art.13 (Contract Violating This Law) of the Labour Standards Law, a labour contract which provides for working conditions which do not meet the standards of the Labour Standards Law shall be invalid with respect to such portions. In such cases the portions which have become invalid shall be governed by the standards set forth in the Labour Standards Law. Even if both parties, employer and employee, agree to certain contract clasues, they are invalid if they are in violation of Labour Standards Law.
For example, if an employee signs a contract agreeing to work seven days a week, the employer must still provide the employee with one rest day per week.

Under Art. 14 (Period of Contract) of the Labour Standards Law, labour contracts - excluding those with an indefinite period (life-time employment), and those providing that the term shall be the period necessary for the completion of a specified project - cannot be concluded for a period longer than one year.




Under Art. 20 (Notice of Dismissal) of the Labour Standards Law, in the event that an employer wishes to dismess a worker, the employer must provide at least 30 days advance notice. An employer who does not give 30 days advance notice must pay the dismissed employee the average wages for a period of not less than 30 days.


Under Art. 16 (Ban on Predetermined Indemnity) of the Labour Standards Law, an employer cannot make a contract which fixes in advance either a sum payable to the employer for breach of contract or an amount of indemnity for damages.
For example, an employee cannot be fined 100,000 yen for quitting before their contract term is up.

Under Art. 37 (Increased Wages for Overtime Work, Work on Rest Days and Night Work) of the Labour Standards Law, in the event that an employer extends working hours, more than eight hours per day, has a worker work on rest days or has a worker work during the period between 10pm and 5am the employer must pay increased wages for work during such hours or on such days at a rate at least 25 percent over the normal hourly wage




Under Art. 39 (Paid Leave) of the Labour Standards Law, an employee who has been continuously employed for six months and has reported to work on 80% of his/her scheduled work days is entitled to paid leave, including part-time workers. Full-time workers who meet the above requirements should receive 10 days paid leave after the first six months and one additional day per year after the second, to a maximum of 20days. Part-time workers who meet the above requirements should receive paid leave proportional to the number of days worked.

Under Art. 24 (Payment of Wages) of the Labour Standards Law, wages must be paid in cash and in full directly to the workers. Other arrangements such as direct bank deposits are allowed.

Under Art. 12 (Clear Statement of Working Conditions) of the Labour Standards Law, in concluding a labour contract, the employer must clearly state the wages, working hours and other working conditions to the worker. In the event that the actual working conditions differ from those stated in the labour contract, the worker may immediately cancel the labour contract.




Under Art. 91 (Restrictions on Sanction Provisions) of the Labour Standards Law, the amount of decrease in wages as a sanction against a worker cannot exceed one-half of the average daily wage, nor can the total amount of decrease for a single pay period exceed ten percent of the toal wages.
For example, if your monthly salary is 250,000 yen your employer cannot fine you 50,000 yen if you are late three times or more. Your employer can, of course, deduct wages for lost working hours.

Under the Health Insurance Law and the Welfare Pension
Insurance Law, any employee who works 3/4 of the hours of a regular employee (40 hours/week), regardless of the type of contract they are employed under, is eligible for enrollment in the Social Insurance Program.

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