Working Conditions: Chapter One
The increasing number of foreign workers in Japan has led to a growing concern about their working conditions. To help foreigners understand more the system they're in (or the system they are considering joining), we have decided to provide a translation of a booklet issued by the Ibaraki Labor Bureau (茨城労働局). In so doing, we do hope that we will be able to reduce the problems between foreign workers and Japanese employers in our prefecture.
Discrimination in wages, working hours, etc., due to one's nationality or religion, is strictly prohibited in Japan. A foreign worker employed by a company or factory is entitled to the same rights as a Japanese worker. It is important for one to know and understand the laws and systems related to employment. By consequence, the following translation applies to all workers in Japan, may they be Japanese nationals or foreigners.
Prologue
The Labor Standard Law (below mentioned as the "Labor Law") is a law constitutionally fixing the minimum wage a worker can be given. It is designed as the requirement for one worker to carry on a satisfactory life. The Labor Law is applicable to all enterprises hiring at least one worker, including part-time workers. This focus of this standard being primarily about wage minimum, both employers and employees are requested to strive for a better organization of the working conditions.
Chapter 1 RECRUITING
When recruiting, the working conditions have to be specified
The employment relationship starts with the conclusion of the contract. The contract of employment is a document, signed by the employer and the employee, which mentions the conditions of the services rendered by the employee in exchange for remuneration. The Labor Law requires the employer to specify the working conditions upon the conclusion of the contract (Labor Law, Article 15).
What are the working conditions to be specified?
Below are the different working conditions one should not fail to mention when concluding a contract (Labor Standard Law's Enforcement Regulations, below mentioned as Labor Rules, Article 5, Paragraph 1).
The following items must be specified, no matter what:
- Term of contract
- Location of workplace and type of work required
- Times work starts and ends, existence or non-existence of work exceeding the amount of scheduled working hours, break time, days off, vacation as well as shift times when workers are split into two groups or more.
- Methods of calculation and payment of wages, when wages are paid
- Resignation and dismissal conditions
- Salary increase conditions
When making provisions, the following must be clearly specified:
- Scope of workers entitled to a provision for retirement benefit, determination of retirement benefit amount, methods of determination, calculation and payment of retirement benefit, retirement benefit payment time.
- Special purpose wages, bonuses and minimum wage.
- Food, work supplies material's expenses imposed on the employee.
- Safety and hygiene.
- Job training
- Accident compensation and work-unrelated accident and sickness assistance.
- Prizes and sanctions
- Temporary suspension from work
Let's pay close attention and request the working conditions in writing (better be safe than sorry).
The previous points from 1 to 5 must be in written form and must be mentioned when passing on the document to the employee (Labor Rules, Article 5, Paragraph 3). A model of the document is available here.
Apart from points 1 to 5, there is no legal obligation to put everything in writing. It is widely accepted to settle the remaining points orally; however, in order to prevent any trouble from happening in regard to the working conditions, it is probably advisable to specify everything in writing.
In addition, all items concerning working regulations must be specified (except 1, 2, and the "existence or non-existence of work exceeding the amount of scheduled working hours" specification in 3). In a place with proper working regulations, delivering those rules can suffice. (About 1, 2 and the "existence or non-existence of work exceeding the amount of scheduled working hours" specification in 3, it is important to deliver a separate document.)
Term of contract
According to a general classification, there are two types of contracts of employment: "contracts of employment without term" and "contracts of employment with fixed term" (or "fixed term employment contracts"). In case of a "contract of employment without term," if age-limit retirement is part of the working regulations, the day on which one reaches retirement age becomes the final contracting day.
On the other hand, an employer in principle cannot make a "fixed term employment contract" of more than three consecutive years, or five consecutive years for the following types of employees (Labor Law, Article 14, Paragraph 1):
- Knowledgeable, technical, and experienced specialists (experts etc.) recognized through the standards defined by the Minister of Health, Labor and Welfare
- People aged over 60
In exceptional cases, it is possible to consider the final contracting day (for a construction worker for example) as the day on which a project was completed, provided that the project was planned to be completed in a fixed period of time.
More specifically, here are the different categories of workers defined in point 1 above as "knowledgeable, technical and experienced specialists (experts etc.) recognized through the standards defined by the Minister of Health, Labor and Welfare":
- Holders of doctorates (includes doctorates acquired abroad).
- Holders of the following licenses:
- Certified Public Accountant
- Medical Physician
- Dental Practitioner
- Veterinarian
- Lawyer
- First-class Architect
- Certified Public Tax Accountant
- Pharmacist
- Social Insurance Worker
- Real Estate Appraiser
- Professional Engineer
- Chartered Patent Agent
- Those who have passed a System Analysis and Actuarial examination.
- Inventors of a "patented invention," as provided by the Patent Law, cultivators of a "registered plant variety," as provided by the Seeds and Seedling Law, and producers of a "registered design," as provided by the Design Law.
- 4-year university graduates with at least 5 years of on-the-job experience, 2-year university graduates and technical high school graduates with at least 6 years of on-the-job experience, and high school graduates with at least 7 years of on-the-job experience. In the case of the following jobs, the annual income must be at least 10.75 million yen:
- Agriculture, forestry and fisheries industry technicians
- Industrial technicians
- Mechanical and electrical engineering technicians
- Architectural and civil engineering technicians
- System engineering technicians or designers
- System consultants with at least 5 years of on-the-job experience as system engineer technicians and an annual income of at least 10.75 million yen.
- Workers not only certified as people of great knowledge by the State or its institutions but also recognized by the Director of the Labor Standards Bureau (attached to the Ministry of Health, Labor and Welfare), based on the conditions enumerated from points 1 through 6.
Standards concerning the conclusion of a fixed term employment contract, renewal and nonrenewal of a contract.
Even though fixed term employment contracts (contracts in which a working period is decided) can be renewed repeatedly, there are cases of sudden nonrenewal at the end of the contracted period. This often leads to forced retirement, a fact causing tremendous trouble nowadays.
In order to solve and prevent the occurrence of these problems and so that fixed term employment contracts can be used for employment patterns good for both the management and the labor force, the Revised Labor Standards Law (January 1st, 2004) made it possible for the Minister of Health, Welfare and Labor to establish standards forcing employers to abide by certain measures. Based on this, the "Standards Concerning the Conclusion of a Fixed Term Employment Contract, Renewal and Nonrenewal of a Contract", detailed below, were designed..
In addition, the head of the relevant labor standards supervision office can give advice and perform guidance to employers when necessary, basing his/her thoughts on the Standards (Labor Law, Article 14, Paragraphs 2 and 3).
Items to be specified when concluding a contract
- The employer must inform the employee whether the contract will be renewed automatically, may be renewed, or is nonrenewable
- When the fixed term employment contract says that contract renewal can happen, the employer has to let the employee know about the decision factor(s) (ex. load of work at the end of the contracting period; employee's work performance, skills, and behavior/attitude; company's financial condition) resulting in a renewal or nonrenewal
- The employer must inform the employee, promptly after the conclusion of the fixed term contract, when changes concerning 1 and 2 are likely to be made.
It is highly recommended to provide the employee a written record of all the points above to avoid any future problems.
Notice of nonrenewal
The employer must inform the employee of the nonrenewal of his/her fixed term employment contract at least 30 days prior the completion of the contracting period. An exception is made when the employer's unwillingness to renew the contract has been expressed in advance. Also, this notice of nonrenewal is exclusively reserved for workers who were renewed their contracts after more than 1 year of duty.
Fixed term employment contracts where notice should be made:
- Contracts initially less than one year being renewed once or more to eventually exceed a total of one full year
- Contracts exceeding one entire year
Statement of reason in case of nonrenewal
After announcing a contract's nonrenewal, employers must promptly deliver, upon employees' request, a certificate mentioning the reason(s). Sometimes, employees ask for the reasons of nonrenewal after completion of their contract. In that case as well, employers have to abide to their request.
How to specify the contract's nonrenewal reason(s): the reason(s) should not be related to the expiration of the contract; here are some valid examples:
- When the contract was previously renewed, both parties had agreed that it would not be renewable
- During the initial contract negotiations, a maximum limit of contract renewals had been set and this limit reached
- The task of which the employee had been entrusted with was complete or cancelled
- The company downsized its operations
- The employee's skills were judged insufficient for him/her to perform his/her task(s)
- The employee proved unreliable by committing violations contrary to the nature of his/her work assignment(s) by missing work with no excuse, providing low work quality, etc.
Consideration about the contract period
When employers renew a contract more than once and intend to keep the employee for more than one year on a fixed term employment contract, they must make efforts to answer employees' wishes in accordance with the contract statuses and go towards a maximum extension of the contract period.
Let's pay close attention to the following when concluding a contract.
- Discriminating based on nationality, belief, social status, etc. when setting the working conditions is strictly forbidden (Labor Law, Article 3).
For more information about the relevant laws please refer to the Health, Labor and Welfare Ministry homepage (English
, Japanese).
Also, please do not hesitate to stop by your nearest Labor Department, Labor Standards Inspection Office (http://www.ibarakiroudoukyoku.go.jp/ for Ibaraki).
Some useful vocabulary
| English | Japanese | English | Japanese | English | Japanese |
|---|---|---|---|---|---|
| Hiring | 採用 (saiyō) | Non-fixed term contract | 期間の定めのない契約 (kikan no sadame no nai keiyaku) | Designer | デザイナー (dezainaa) |
| Working conditions | 労働条件 (rōdō-jōken) | Fixed-term contract | 期間の定めのある契約 (kikan no sadame no aru keiyaku) | Annual income | 年収 (nenshū) |
| Hiring | 雇用 (koyō) | Fixed-term contract | 有期労働契約 (yūki-rōdō-keiyaku) | System consultant | システムコンサルタント (shisutemu konsarutanto) |
| Conclude (a contract) | 締結 (teiketsu) | Retirement age | 定年 (teinen) | Contract renewal | 契約更新 (keiyaku-kōshin) |
| Contract of employment | 労働契約 (rōdō-keiyaku) | Completion of contract | 契約満了 (keiyaku-shūryō) | Contract non-renewal | 契約雇止め (keiyaku-yatoidome) |
| Worker | 労働者 (rōdōsha) | Specialty, domain | 専門 (senmon) | Solution to a problem | 解決 (kaiketsu) |
| Salary | 賃金 (chingin) | Knowledge | 知識 (chishiki) | Labor and management | 労使双方 (rōshi-sōhō) |
| Working hours | 労働時間 (rōdō-jikan) | Technique, science, skill | 技術 (gijutsu) | Employment pattern/system | 雇用形態 (koyō-keitai) |
| Employer, boss | 使用者 (shiyōsha) | Experience | 経験 (keiken) | Revised Labour Standards Law | 改正労働基準法 (kaisei-rōdō-kijun-hō) |
| Labour Standards Law | 労働基準法 (rōdō-kijun-hō) | Building work | 建設工事 (kensetsu-kōji) | Labor standards supervision office | 労働基準監督署 (rōdō-kijun-kantoku-sho) |
| Labour Standards Law | 労基法 (rōkihō) | Labour, Health and Welfare | 厚生労働 (kōsei-rōdō) | Head of labor standards supervision office | 労働基準監督署長 (rōdō-kijun-kantoku-shochō) |
| Rules | 規則 (kisoku) | Minister of Labour, Health and Welfare | 厚生労働大臣 (kōsei-rōd-daijin) | Advice, counseling | 助言 (jogen) |
| Contracting period | 契約期間 (keiyaku-jikan) | Ministry of Labour, Health and Welfare | 厚生労働省 (kōsei-rōdō-sh) | Guidance | 指導 (shidō) |
| Place of work | 就業場所 (shūgyō-basho) | Standard, norm | 基準 (kijun) | Juddgment, estimation | 判断 (handan) |
| Task, duty | 業務 (gyōmu) | Doctor of Philosophy | 博士 (hakase) | Work load | 業務量 (gyōmu-ryō) |
| Work start time | 始業時間 (shigyō-jikan) | diploma | 学位 (gaku-i) | Job performance | 勤務成績 (kinmu-seiseki) |
| Work end time | 終業時間 (shūgyō-jikan) | Certified public accountant | 公認会計者 (kōnin-kaikeisha) | Skills, abilities | 能力 (nōryoku) |
| Scheduled working hours | 所定労働時間 (shotei-rōdō-jikan) | Doctor | 医師 (ishi) | Financial health | 経営状態 (keiei-jōtai) |
| Break time | 休憩時間 (kyūkei-jikan) | Dentist | 歯科医師 (shika-ishi) | Forenotice, notice, annoucement | 予告 (yokoku) |
| Days off | 休日 (kyūjitsu) | Veterinary | 獣医師 (jū-ishi) | Recurrent renewal | 反復更新 (hanpuku-kōshin) |
| Holidays, vacation | 休暇 (kyūka) | Lawyer | 弁護士 (bengoshi) | Without delay | 遅滞なく (chitai-naku) |
| Shift work | 就業時転換 (shūgyō-jitenkan) | First-class architect | 一級建築士 (ikkyū-kenchikushi) | Agreement | 合意 (gōi) |
| Calculation | 計算 (keisan) | Certified public tax accountant | 税理士 (zeirishi) | Downsizing | 事業縮小 (jitsugyō-shukushō) |
| Mode of payment | 支払い (shiharai) | Pharmacist | 薬剤師 (yakuzaishi) | Infraction, vilation | 違反行為 (ihan-kōi) |
| Deadline | 締め切り (shimekiri) | Certified social insurance labor consultant | 社会保険労務士 (shakai-hoken-rōdōshi) | Absence without due notice | 無断欠席 (mudan-kesseki) |
| Retire, resign | 退職 (taishoku) | Real estate appraiser | 不動産鑑定士 (fudōsan-kanteishi) | Nationality | 国籍 (kokuseki) |
| Dismiss, lay off | 解雇 (kaiko) | Technician, professional engineer | 技術士 (gijutsushi) | Belief | 信条 (shinjō) |
| Increase in pay/salary | 昇給 (shōkyū) | Chartered patent agent | 弁理士 (benrishi) | Social status | 社会的身分 (shakaiteki-mibun) |
| Retirement payment, redundancy benefit | 退職手当 (taishoku-teate) | System engineer | システムアナリスト (shisutemu anarisuto) | Discrimination | 差別 (sabtesu) |
| Part-time | 臨時 (rinji) | Actuary | アクチュアリー (akuchuarii) | Discriminatory treatment | 差別的扱い (sabetsu-toriatsukai) |
| Minimum wage, minimum salary | 最低賃金 (saitei-chingin) | Patent law | 特許法 (tokkyo-hō) | Invalid, void | 無効 (mukō) |
| Amount of money | 金額 (kingaku) | Patented invention | 特許発明 (tokkyo-hatsumei) | Valid | 有効 (yūkō) |
| Food expenses | 食費 (shokuhi) | Inventor | 発明者 (hatsumeisha) | Failure, neglect | 不履行 (furikō) |
| Work tools, material | 作業用品 (sagyō-yōhin) | Design law | 意匠法 (ishō-hō) | Penalty sum | 違約金 (iyaku-kin) |
| Safety | 安全 (anzen) | Registered design | 登録意匠 (tōroku-ishō) | Legal damages | 損害賠償額 (songai-baishō-gaku) |
| Hygiene | 衛生 (eisei) | Creation | 創作 (sōsaku) | Advance money | 前借金 (maegari-kin) |
| Work training | 職業訓練 (shokugyō-kunren) | Seed and seedling law | 種苗法 (shūbyō-hō) | Credit | 前貸し (mae-gashi) |
| Accident benefit | 災害補償 (saigai-hoshō) | Registered variety | 登録品種 (tōroku-hinshu) | Debt | 債権 (saiken) |
| Accident and sicknedd allowance | 傷病扶助 (shōbyō-fujo) | Formation, training | 育成 (ikusei) | Compulsory savings | 強制貯金 (kyōsei-chokin) |
| Award, bonus, honour | 表彰 (hyōshō) | Practical experience | 実務経験 (jitsumu-keiken) | Savings | 貯金 (chokin) |
| Sanction | 制裁 (seisai) | Agriculture, forestry and fisheries industry | 農林水産業 (nōrin-suisangyō) | Commission, trust | 委託 (itaku) |
| Suspension of Work, administrative leave | 休職 (kyūshoku) | Mining and manufacturing | 鉱工業 (kō-kōgyō) | Savings, thrift | 貯蓄金 (chochiku-kin) |
| in writing | 書面で (shomen-de) | Mechanical and electrical engineer | 機械・電気技術者 (kikai/denki-gijutsusha) | In-house savings deposit | 社内預金 (shanai-yokin) |
| orally | 口頭 (kōtō) | Architecture | 建築 (kenchiku) | Workers register | 労働者名簿 (rōdōsha-meibo) |
| To avoid future trouble | 未然にトラブルを防止する (mizen ni toraburu wo bōshi suru) | Civil engineering technician | 土木技術者 (doboku-gijutsusha) | Payroll book | 賃金台帳 (chingin-daichō) |
| Contract period | 契約期間 (keiyaku-kikan) |