What is Japanese labour law ?

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The scope of Japanese labor law is defined by the Japanese Civil Code.

It is common practice for employers to pay “regular” full-time employees on open-ended contracts commuting expenses, meal allowances, housing allowances, family allowances and bonuses, as well as a retirement allowance on termination of employment.

Article 622 defines contracts of employment, article 632 defines a contract for work, and article 643 defines a contract for mandate.

In workplaces with 10 or more employees, the employer must establish written “work rules”, stipulating conditions of employment that apply to all employees at the workplace and constitute part of their employment contracts.

The parties are free to decide the functional nature of their contract, but labor rights apply regardless of the label in the contract. Courts use a subordination test to determine whether someone is an employee or is self-employed.

The initial annual entitlement for full-time employees is 10 working days of leave. This increases each year, up to a maximum of 20 days after six-and-a-half years’ continuous service.

There are generally 16 national public holidays a year, including Children’s Day, Greenery Day, Respect for the Aged Day and the Emperor’s Birthday.

An employee is entitled to take childcare leave in respect of a child under the age of one year for whom the employee has care responsibilities.

The scope of Japanese labor law is defined by the Japanese Civil Code. Article 622 defines contracts of employment, article 632 defines a contract for work, and article 643 defines a contract for mandate

The parties are free to decide the functional nature of their contract, but labor rights apply regardless of the label in the contract. Courts use a subordination test to determine whether someone is an employee or is self-employed.

Employment agreements are regulated by the Civil Code and by the Labor Standards Act of 1947

Japan has minimum wage laws: the actual amount is based upon the local cost of living and therefore varies from region to region

Cash payments are usually made by electronic funds transfer. The maximum pay period is one month, which is the standard pay period throughout Japan, although bonuses and other supplemental payments such as commuter allowance may be paid at longer intervals.

Salaries at Japanese companies are based on seniority, and are adjusted for the needs of employees, such as if they have a family and kids. Companies also generally reimburse for public transportation.

Since 1987, Japan has adopted the principle of a 40 hour week. If people work over eight hours per day, 40 hours per week, or on holidays (and one "weekend" day a week), or at late night (10pm to 5am), they are entitled to overtime pay. Under the Labor Standards Act of 1947 article 37, this is 25% of pay, or 35% on holidays.

Since 2010, a rate of 50% overtime pay applies for people working over 60 hours a week. However, although overtime pay is required by law, Japanese companies before 1990 were known to take employees to court over employees' requests for overtime or other legitimate compensation.

The Labor Standards Act of 1947 gives the right to paid annual leave based on an employee's seniority. Since 1988, employees have the right to ten days of annual leave after the employee's first 6 months of service

The minimum amount of annual leave increases each year thereafter following a fixed schedule (as per the contract), usually up to twenty working days a year. An employee is entitled to one holiday per week unless they otherwise receive four or more holidays within every period of four weeks.

Equal pay for equal work” entails equal pay for non-regular workers that engage in the same scope of work[7]. Put another way, equal treatment of workers - without discrimination on employment status

The “high-level” professionals who qualify for exemption from the overtime cap are those whose work require highly specific knowledge (such as financial traders, consultants, and product developers; professions are yet to be specified

A provision allowing “high-level” professionals to give up exemption status if they desired was added, following criticism from opposition that this exemption could further exacerbate the overwork culture

Karōshi and reforms on labor policy in Japan were further brought into urgent attention following the suicide of 24 year old Matsuri Takahashi on Christmas Day in 2015

Japan's constitution founded on democratic principles was promulgated on 3 November 1946 and came into force 3 May 1947.

It is considered the supreme law of the nation and the Emperor as well as the legislative, executive and judicialpowers must respect and uphold it (Art. 99 of the Constitution). According to this constitution, the Emperor has only a sybolic and formal function.