Law of Japan - Employment Law

Employment Law

See: Japanese employment law

The individual relationship between employer and employee:

Basics of the Japanese employment law are established in the Japanese Constitution, which was framed in large part with an eye toward the U.S. Constitution. As such, employment laws in Japan are very similar to those in the U.S., and can be divided into three general categories: labor standards, labor relations, and trade unions. The 'employment' or 'service' contract is recognised under Article 623 of the Japanese Civil Code. While the term 'labour contract' is not defined under the Labour Standards Law (LSL), to all intents and purposes the courts regard the two as one and the same, and the terms 'labour contract’ and 'employment contract' as interchangeable. It is through the civil procedure, therefore, that the boundaries of the individual contract have largely been defined by means of a comprehensive body of case law.

Most terms and conditions of employment are provided by the company's work rules, which may be drawn up and varied unilaterally."Japan", Y. Matsuda, S. J. Deery & R. J. Mitchell (ed), Labour Law & Industrial Relations in Asia, 1993, Longman Cheshire: Sydney, at 175. However, under the LSL, an employer of more than ten persons is required to draw up a set of rules specifying certain conditions of work, including hours, rates of pay, promotion, retirement and dismissal (LSL art. 89). About 42 per cent of the private sector workforce is employed in firms with fewer than ten employees. Consequently, these employers are exempt from the legal obligation to provide formal work rules in respect of their employees. The LSL also requires the employer to consult with the union, if any, or with a person who represents a majority of the employees in drafting the work rules (LSL art. 89). A copy of the work rules must also be submitted to the Labour Standards Office (LSL art. 90).

Under the Japanese Constitution, citizens are guaranteed the right to maintain the minimum standards of a wholesome and cultured life (art. 25). These are to be maintained through the right to work (art. 27) and the right to property (art. 29). The Constitution also guarantees certain work-related rights. Wages, hours and other working conditions must be fixed by law (art. 27).

Under the Industrial Safety and Health Law of 1972 (ISHL), employers bear the major responsibility for the prevention of occupational disease and accident through an integrated scheme of insurance and safety and health management. Furthermore, through the employment contract, employers owe a general duty to take care of their employees’ health and safety—and may be sued for damages for negligence in cases where breach of duty or violation of the statutory regulations has occurred.