Global Compliance Desk – Japan
A Bill relating to work style reform was enacted in the National Diet, which amends the Labor Standards Act, the Industrial Safety and Health Act, and relevant laws. Most amendments will come into effect on April 1, 2019. This update provides an overview such:
Revision of Overtime Regulation – Restrictions on the Maximum Amount of Overtime
The amended Labour Standards Act stipulates that the upper limit for overtime shall be, in principle, 45 hours a month and 360 hours a year. Even in special circumstances, the upper limit will be:
- 720 hours a year;
- Less than 100 hours a month (including holiday work); and
- An average of 80 hours a month (including holiday work).
However, there are exceptions for certain business sectors. For certain employees – including motor vehicle drivers, construction workers, and doctors – there is a grace period before the regulation must be applied. For employees working in R&D of new technology, products or services, the application of this regulation shall be excluded, if employees receive face-to-face consultation with a doctor.
Annual Paid Leave Right
To promote the secure taking of paid leave, the amended Labor Standards Act requires employers to designate the timing of 5 days of annual paid leave for employees who are granted 10 days or more of annual paid holiday.
Rest Period
Amendments to the Act for Improvement of Setting of Working Hours provide that employers shall endeavor to secure a certain period of rest between the finish time of the previous day and the start time of the next day to promote employee’s health.
