Currently, there is an administrative policy that sets a limit on overtime. However, under the new law, there will be an explicit and binding limit on overtime, unless the position falls into one of the few exempted positions.1 This overtime limit will come into effect from April 2019 for large employers and from April 2020 for small employers.2 Although the determination of a large and a small employer is based on a number of factors: In general, employers with 50 or fewer employees are considered small employers. The penalty for non-compliance with the new overtime rules can include jail terms of up to six months or fines of up to 300,000 yen. Indeed, these sanctions can be imposed not only on the employer, but also on the person responsible for the company (e.B. Country manager or HR MANAGER who is responsible for the working hours of employees). (2) New points with special conditions have been added to the contract. In the following points, an agreement must be concluded between the work and the management. 1. What is an overtime agreement in work management? So what`s going on in this research center? Why do all these health professionals seem to have to work continuously for months? Last week, Japanese newspapers reported that in 2012, a national medical research center on the outskirts of Osaka entered into a so-called “Deal 36” with its doctors and nurses, allowing these employees to work up to 300 hours of overtime per month and up to 2,070 hours of overtime per year. (To be clear, these hours are in addition to employees` normal hours of work.) The amendments to the law highlight the prohibition of unjustified differences in pay and social benefits for fixed-term or part-time workers compared to regular workers. Whether it is unjustified is determined, inter alia, on the basis of the job description, the possibility of job transfer and the place of work. Employers are required to explain the reasons for any difference at the request of an employee. For posted workers (workers posted by a recruitment agency), the new law requires the recruitment agency to provide posted workers with a certain level of compensation or to conclude an employment management contract for new statutory positions.
Most of the provisions of this amendment will be amended on 1. April 2020, but the requirement for equal pay for equal work for part-time and fixed-term workers will come into effect for small employers on April 1, 2021. Standard restrictions on extended working hours on the basis of an agreement under Article 1 of the Labour Standards Act (announcement of standard limits) If employees work more than 40 hours per week, a company is expected to pay employees overtime unless they work in a managerial position. Businesses that intend to work overtime on a regular basis must enter into a written agreement between employees and management, commonly referred to as “section 36,” and submit it to the Bureau d`inspection des normes du travail. This agreement is often referred to as “Article 36” because it refers to Article 36 of Japan`s Labor Law. This report should be renewed annually. If overtime exceeds 45 hours per month or 360 hours per year, the company is required to submit an “overtime agreement with special conditions” that allows employees to work overtime at the agreed limit. Even with this agreement, employees are not allowed to work overtime of more than 45 hours more than six times a year. It is also necessary to indicate the additional rate of pay for overtime of more than 45 hours. This agreement is called the “36 agreements (read: Sabu-roku kyotei)” because it is provided for in Article 36 of the Labour Standards Act. The official name is “Notice of Agreement Concerning Overtime and Vacation Work”.
The Labour Standards Act stipulates that working time must be included in the “statutory working hours” of eight hours per day and no more than 40 hours per week. “Accord 36” is a document that takes its name from section 36 of the Act respecting labour standards. This provision stipulates that any work exceeding 8 hours per day or 40 hours per week or public holidays requires a prior written agreement between the employer and the trade union concerned. “Agreement 36” usually takes the form of a one-sided standard contract, stamped by the company and its employee representative and submitted to the local employment office. If a company allows its employees to work beyond legal working hours (“legal overtime”) or public holidays (“statutory holiday work”), it is necessary to sign a labor and management agreement in advance and submit it to the labor standards office of the jurisdiction. Since this issue is provided for in Article 36 of the Labour Standards Act, it is commonly referred to as Saburoku Kyotei (Agreement 36). 4. CAN AN EMPLOYER USE OVERTIME TO AVOID REGISTERING SHAKAI HOKEN? Nein.Es is illegal for an employer to use overtime (especially “overtime included in salary” – see below) as a way to make an employee work longer while claiming that the employee does not meet shakai Hoken registration limits. Overtime cannot be used as a “legal loophole” to artificially lighten working hours in order to escape responsibility for Shakai Hoken`s registration.
Once an employee`s total working time exceeds 30 hours per week, an employer is required by law to register the employee in Shakai Hoken.5. CAN I BE FORCED TO WORK OVERTIME? Nein.Es is illegal for an employer to force an employee to work overtime unless there is an agreement signed by an elected person representing the majority of workers in the workplace. Since this law is governed by section 36 of the Labour Standards Act, these types of agreements are referred to as “section 36 agreements”. Until a “section 36 agreement” is in place, it is illegal to force a worker to work overtime, and there can be no overtime unless it is voluntary. In addition, the employer must explain, among other things, the specific reasons why employees are required to work overtime or statutory days off, what types of tasks employees are required to perform, what hours such employees may have to work overtime on a day (Section 16 of the Ordinance on the Application of the Labour Standards Act).6. CAN AN EMPLOYER SET ITS OWN OVERTIME RATES INDEPENDENTLY OF THE LAW? An employer may set the overtime rate so that it is higher than the legal basis, but the rate is not lower than the legal basis. For example, in the case of a person who works more than 40 hours per week, the employer may set the overtime rate of pay from +125% to +150%. However, the employer cannot stipulate that the rate is lower than the legal rate of +125%. 7. CAN AN EMPLOYER SET A FIXED ALLOWANCE INSTEAD OF OVERTIME BEING A PERCENTAGE OF THE BASE SALARY? As noted above, an employer may set a fixed rate for overtime pay (e.B¥3,500 per hour), provided that the compensation is equal to or greater than the legal principle for the type of overtime worked.
For example, if an employee who earns ¥500,000 per month and works 40 hours a week is working overtime during regular hours (i.e.