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Employee protection legislation in Japan

As an employer in Japan, you need to understand and adhere to various labour laws and regulations to protect your business and your employees. This way, you can avoid legal issues while keeping your operations running smoothly.

In this guide, we will provide everything you need to know about employee protection legislation, including whistleblowing protections, data privacy, equal treatment for agency workers, anti-discrimination laws, and more.

Labour laws protecting workers in Japan

Employers in Japan are mandated to follow different regulations, including but not limited to working hours, wages, employment contracts, and workplace safety. Above all, this ensures safe working conditions and protects workers. Some key legislations include:

  • Labour Standards Act: This law mandates basic working conditions such as minimum wage, maximum working hours, safety standards, and overtime regulations.
  • Act on Securing, etc. of Equal Opportunity and Treatment between Men and Women in Employment: This act focuses on protecting gender equality, such as equality in hiring, promotions, and protection against maternity discrimination.
  • Industrial Safety and Health Act: It ensures the health and safety of workers in the workspace by setting safety requirements for machinery, prevention of hazards, and health checkups.
  • Childcare and Family Care Leave Act: This law provides employees with rights to take leave for childcare and family care without fearing job loss or discrimination.
  • Workers’ Accident Compensation Insurance Act: This act covers workers’ compensation, providing financial compensation and support in the event of injuries, diseases, or death caused by job-related reasons.
  • Employment Measures Act: This focuses on the stable employment of citizens, including support for job seekers and vocational training assistance.
  • Minimum Wages Act: This ensures that all workers receive at least the minimum wage set by regulations.

Whistleblowing in Japan

The Whistleblower Protection Act was initially enacted in 2004 to protect workers who report illegal or harmful activities by their employers or public entities. Its main goal is to protect whistleblowers from retaliation, such as dismissal or unfavourable treatment, due to their disclosure of information. Any dismissals related to whistleblowing are considered invalid, and disadvantageous treatment is prohibited.

Japan’s Whistleblower Protection Act

In 2020, the Act underwent important updates, which took effect on June 1, 2022. Here are the key changes:

  • Expanded scope of protection: The law now protects whistleblowers who report not only violations of laws and regulations, but also acts that threaten public interests or safety, including environmental issues.
  • Obligation for companies: Companies are now required to establish and promote internal reporting systems to ensure employees have safe channels to report misconduct.
  • Awareness and training for employees: Organisations are encouraged to provide training and raise awareness among employees about whistleblower rights and protections.
  • Protection for external whistleblowers: The Act extends protections to individuals who report misconduct to external authorities, not just internal channels.

For companies with over 300 employees, there is a new requirement to appoint a designated contact person for whistleblower reports and create a supportive system for handling complaints. These changes aim to foster a safer environment for employees to express their concerns without fear.

Data privacy in Japan

The Act on the Protection of Personal Information (APPI) is the main legislation governing data protection in Japan. APPI outlines the requirements for the handling, use, and protection of personal information.

In the workplace, the APPI has provisions that impact how employers handle employees’ personal information. Employers must adhere to the principles of the APPI when collecting, using, and managing personal data of their employees. This includes obtaining consent from employees for the processing of their personal data, implementing measures to safeguard personal information, and ensuring the accuracy of the data collected.

Data privacy policy in Japan

Under the APPI, employers are mandated to provide a clear purpose for the collection of personal information and limit its use to that scope. They are also required to take appropriate security measures to prevent leaks, loss, or damage to personal information. This means that employers should limit access to personal data to authorised persons and ensure that personal information is handled in a manner that respects privacy rights.

Data privacy regulation in Japan

As an employer, you should be aware of the important aspects of the APPI and establish internal policies for data protection and privacy of employees. Some practices you can implement are:

  • Establishing data security measures: Implement appropriate security measures to protect personal information from unauthorised access, leaks, or breaches. This includes both technical measures (like encryption) and organisational policies.
  • Understanding the rights of individuals: Be aware that individuals have rights regarding their personal data, including the right to access, correct, or request the deletion of their information.
  • Handling data breaches: Have a clear protocol in place for responding to data breaches, including notifying affected individuals and relevant authorities as required by law.
  • Understanding data transfer regulations: If transferring personal data outside Japan, employers must ensure that the receiving country has adequate data protection measures in place or obtain additional consent from the individuals involved.
  • Conducting employee training: Regularly train employees on data privacy policies and practices to ensure compliance and promote a culture of data protection within the organisation.

Equal treatment for temporary agency workers in Japan

Temporary agency workers should receive treatment comparable to regular employees in terms of wages, working conditions, and other employment benefits, provided they perform the same work.

The Worker Dispatching Act governs the dispatch of workers by temporary staffing agencies and protects the rights of temporary agency workers. To prevent wage discrimination, the act ensures that the pay for temporary agency workers is not significantly lower than that of permanent employees doing the same job.

The Act has undergone several amendments to adapt to changing economic conditions, employment situations, and labour policies in Japan. These revisions have addressed regulations regarding the types of jobs in which temporary agency workers can be employed, employment periods, and more, to ensure the protection and fair treatment of temporary workers.

For instance, to ensure equal pay for equal work between regular workers (permanent and full-time employees) and temporary agency workers, including fixed-term and part-time employees, amendments to related legislation became effective on April 1, 2020.

Employers should also keep in mind the following principles under the Act:

  • Employment conditions: Temporary agency workers should have access to the same working conditions, such as working hours, breaks, and benefits (like bonuses and training opportunities), as their permanent counterparts.
  • Employment stability: The law encourages agencies to provide stable employment opportunities and prevents the frequent switching of workers among different assignments without proper justification.
  • Transparency and information: Agencies are required to inform temporary workers about their rights, including conditions of employment and the criteria for equal treatment.

Anti-discrimination law in Japan

Does Japan have anti-discrimination laws?

Yes, Japan has anti-discrimination laws that provide various protections for workers. The Labour Standards Act prohibits discrimination regarding wages, working hours, or working conditions based on nationality, creed, or social status.

This Act also mandates that employers must not engage in discriminatory treatment between men and women concerning wages. Moreover, Japan has strengthened its protection against workplace harassment, addressing issues such as sexual harassment and “power harassment” (pawahara), with new legal measures that became effective on June 1, 2020, for larger employers and will apply within three years for smaller organisations.

Labour laws prohibiting discrimination in Japan

Aside from the Labour Standard Acts, there are various laws in place to combat discrimination in the workplace and ensure fair treatment and equal opportunities for all workers. Here are the key labour laws you need to keep in mind:

  • Equal Employment Opportunity Act: This prohibits discrimination against employees based on gender in hiring, promotion, training, job assignments, wages, and other employment conditions. Employers are required to treat male and female employees equally, especially when they perform similar roles. This includes equal pay for equal work.
  • Act on the Elimination of Discrimination against Persons with Disabilities: The Act prohibits discrimination in various areas, including employment, education, and access to services. Employers must treat individuals with disabilities fairly and without bias. Employers are required to make reasonable accommodations for employees with disabilities to help them perform their jobs effectively. This can include adjustments to the work environment or job duties.
  • Employment Measures Act: The Act generally prohibits discrimination based on age when it comes to hiring employees. Employers are expected to provide equal opportunities regardless of an applicant’s age. While the Act prohibits age discrimination, there are certain exceptions. For instance, age limits may be set for specific positions or roles where age is a legitimate requirement, such as jobs that demand a certain level of physical fitness.
  • Child Care and Nursing Care Act: The Act explicitly prohibits discrimination against employees who apply for or take childcare or nursing care leave. This means that individuals cannot be treated unfairly or face negative consequences for utilising their rights under the Act. Employees taking leave for childcare or nursing care cannot be dismissed or subjected to unfavourable treatment regarding promotions, salary, or other employment conditions because of their leave.

Protection against harassment in Japan

The Equal Employment Opportunity Act (EEOA) in Japan addresses harassment in the workplace, particularly sexual harassment. It explicitly prohibits sexual harassment in the workplace, defining it as any unwanted behaviour of a sexual nature that creates an uncomfortable work environment.

Employers are required to take proactive measures to prevent sexual harassment. This includes establishing clear policies, providing training to employees, and creating a safe environment for reporting incidents. The Act also encourages companies to set up procedures for employees to report harassment without fear of retaliation. Employees should have access to confidential and effective complaint mechanisms.

If employers fail to address or prevent harassment in the workplace, they may face legal consequences, including liability for damages if an employee suffers harm due to harassment.

Moreover, a recent change to the Equal Opportunity Act, which took effect in June 2020, strengthens these requirements. Now, employers must also work with other companies when one of their employees harasses someone at a different company. This cooperation helps improve how both companies handle such situations and aims to prevent future harassment between employees of different organisations.

Equal pay for equal work in Japan

Is there an equal pay law in Japan?

Yes, Japan has implemented laws to ensure equal pay across various types of employment. The amendments to the Part-Time/Fixed-Term Employment Act and the Worker Dispatch Act, which came into effect in April 2020, introduced requirements for workers to receive fair and equal treatment, irrespective of their job status. These reforms eliminate disparities between regular and non-regular workers (part-time, fixed-term, and dispatched workers) in terms of wages and working conditions.

Japan’s equal pay law

The reforms to the Part-time/Fixed-term Employment Act focus on ensuring that part-time and fixed-term workers receive pay and benefits similar to full-time employees doing the same job. Employers must clearly explain how they determine pay and working conditions.

These reforms also promote equal access to training, promotions, and other career development opportunities for part-time and fixed-term workers.

For part-time and fixed-term workers, employers cannot set their base salary, bonuses, or benefits in a way that creates unreasonable gaps compared to regular employees. What counts as “reasonable” depends on:

  1. The nature of the tasks and the level of responsibility involved.
  2. How much the duties and positions might change.
  3. Other relevant factors that make sense for the situation.

Employers are not allowed to discriminate against part-time or fixed-term employees in terms of their job duties or positions just because of their employment status.

On the other hand, the reforms in the Worker Dispatch Act ensure that dispatched workers (temporary workers sent to client companies) get equal pay and working conditions compared to regular employees doing similar jobs.

These reforms also encourage companies to hire dispatched workers directly when they can, which helps improve job security and stability. Employers are required to clearly share information about the rights and benefits available to dispatched workers for them to understand what they’re entitled to.

Protect your business with our compliance expertise

Understanding what you can and can’t do as an employer is one of the biggest challenges of hiring in Japan. Get it wrong, and you could face legal action and damage to your reputation.

Our solutions protect both you and your workers, thanks to our team’s in-depth knowledge of local and international labour laws. That means you can stop worrying about compliance issues and focus on what you do best: growing your business.

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