FTC regulated: Yes

Remarks

▷ Note: As of 2018, the Act No. 71 modifying the Act on Improvement, etc. of Employment Management for Part-Time Workers (Act No. 76 of 1993) has included detailed regulations for the management of fixed-term employment contracts under the new denomination of "Act on Improvement of Personnel Management and Conversion of Employment Status for Part-Time Workers and Fixed-Term Workers (Act No. 71 of 2018) (PTW-FTW Act].
▶ Act on Improvement of Personnel Management and Conversion of Employment Status for Part-Time Workers and Fixed-Term Workers (Act No. 71 of 2018) (PTW-FTW Act)
→ Section 1 of the PTW-FTW Act indicates that: The purpose of this Act is to enable part-time/fixed term workers to effectively exercise their abilities in ways such as ensuring that their treatment is equalized with the treatment of workers with standard employment statuses, by taking measures and other actions such as ensuring proper working conditions for part-time/fixed term workers, improving personnel management for these workers, furthering their conversion into workers with standard employment statuses, and helping them develop and improve their vocational abilities; and thereby increasing their welfare as well as contributing to social and economic development; in view of the fact that changes in Japan's social and economic circumstances, including the advancing low birthrate and aging population and changes in employment structures, are increasing the importance of the role that part-time/fixed term workers play.
→ Under section 2-1 of the PTW-FTW Act:
(1) The term "part-time worker" as used in this Act means a worker whose prescribed weekly working hours are shorter than those of a worker with a standard employment status who is employed by the same employer (or are shorter than those of a worker with a standard employment status who is engaged in the same kind of work as the worker in question, if the worker employed by the relevant employer is engaged in the same kind of work as a worker with a standard employment status who is employed by that employer, except in a case specified by Order of the Ministry of Health, Labour and Welfare).
(2)The term "fixed-term worker" as used in this Act means a worker who has entered into a fixed-term labour contract with an employer.
(3)The term "part-time/fixed-term worker" as used in this Act means (a) a part-time worker or a fixed-term worker.
(Fundamental Principles)
→ Section 2-2 PTW-FTW Act indicates that: It is a fundamental principle to ensure that there are opportunities for part-time/fixed-term workers and persons seeking to become part-time/fixed-term workers to work according to their motivation and abilities while maintaining their work-life balance, and to make considerations to enrich their working lives.

Valid reasons for FTC use: no limitation

Remarks

▶ Labour Standards Act (LSA) - (as amended in 2020)
▷ An FTC can be concluded for less than 3 years without objective reasons (section 14 of LSA). However, an FTC can be concluded for a maximum duration of five years only in the following cases:
1) if the worker is highly specialized with specialized knowledge, skills or experience that meet criteria established by the Ministry of Health, Labour and Welfare (MHLW) or
2) if aged 60 years or older (sections 14(1) and (2) of LSA).
▶ Labour Contract Act (LCA) - (as amended in 2018)
→ Under section 17(1) LCA, the dismissal of a fixed-term worker before the expiry of the term is not permitted, unless "there are unavoidable circumstances.
▶ Act on Improvement of Personnel Management and Conversion of Employment Status for Part-Time Workers and Fixed-Term Workers (Act No. 71 of 2018) (PTW-FTW Act)
→ Section 8 of the PTW-FFTW Act indicates that: An employer must not create differences between the base pay, bonuses, and other treatment of the part-time/fixed term workers it employs and its corresponding treatment of its workers with standard employment statuses that are found to be unreasonable in consideration of the circumstances, (...).

Maximum number of successive FTCs: no limitation

Remarks

▷ No statutory limitation on the maximum number of successive FTCs. However, employers’ statutory duty to consider not renewing labour contracts repeatedly:
▶ Labour Contract Act (LCA) - (as amended in 2018)
→ Section 17(2) of the LCA provides that with regard to a fixed-term labour contract, an employer shall give consideration to not renewing such labour contract repeatedly as a result of prescribing a term that is shorter than necessary in light of the purpose of employing the worker based on such labour contract.

Maximum cumulative duration of successive FTCs: no limitation

Remarks

▷ No statutory limitation, but the possibility of converting an FTC into an indefinite contract upon workers’ application, if the cumulative duration of two or more successive FTCs exceeds 5 years.
▷ Note: Although the legislation places limits on the duration of a single fixed-term contract, the maximum cumulative duration of FTCs is not subject to statutory limitations.
→ Under the LSA, a labour contract cannot be concluded for a term exceeding three years, except for the contracts concluded for the completion of a specified project. The maximum duration of five years is authorized for the contracts of labour of highly specialized employees and those aged 60 years or older.
▶ Labour Standards Act (LSA) - (as amended in 2020)
→ Section 14(1) LSA indicates that: Excluding labour contracts without fixed terms and excepting those in which it is provided that the contract period is the period necessary for the completion of a specific undertaking business, it is prohibited to enter into a labour contract for a period exceeding 3 years (or 5 years, for a labour contract falling under one of the following items):
(i) a labour contract entered into with a worker who has expert knowledge, skills, or experience (hereinafter referred to as "expertise" in this item and section 41-2, paragraph (1), item (i)) falling under the standards prescribed by the Minister of Health, Labour and Welfare as being of an advanced level (limited to a worker who is appointed to work activities requiring the prescribed advanced level of expertise).
(ii) a labour contract entered into with a worker aged 60 years or older (other than a labour contract as set forth in the preceding item). (...).
▶ Labour Contracts Act (LCA) - (as amended in 2018)
→ Section 18(1) LCA provides for the possibility of conversion of an FTC with the same employer to an indefinite labour contract upon the application by the worker, if the cumulative duration of two or more successive FTCs exceeds 5 years (excluding FTCs concluded with an interruption of 6 months or more, under section 18(2)), which the employer is deemed to accept).

Maximum probationary (trial) period (in months):

no limitation
Remarks

▷ Probationary periods are frequently used in practice. References are made to the probationary period under the Labour Standards Act (LSA) (§§ 12(3)(v) and 21(iv)). However, there is no statutory provision on the maximum duration of probationary periods. In practice, three-month probationary periods are most commonly used, and most are set for one to six months.
▶ Japanese case law
▷ In case of indefinite contracts, under the Japanese case law, probationary contracts have been considered as labour contracts in which the employer’s right of cancellation is reserved. The scope of an employer's freedom to dismiss a worker based on such a reserved cancellation right should be recognized as broader than an ordinary dismissal. However, the exercise of the employer's reserved cancellation right should be permitted only when, viewed in light of the aims and objectives of reserving a cancellation right, the dismissal can be justified on the basis of objectively reasonable grounds and generally accepted norms. (See: Mitsubishi Jushi Case, Supreme Court (1973), SMS, Vol. 27, No. 11, p. 1536 as cited in Tadashi A. Hanami, Fumito Komiya, Ryuichi Yamakawa: "Japan", in R. Blanpain (ed.): International encyclopaedia for labour law and industrial relations (The Hague, Kluwer Law International, 2015), p. 79)

Excluded from protection against dismissal: Yes

Remarks

▷ Note: National and local public servants in the general category, seafarers, and family members living with the employer are excluded from the scope of the Labour Standards Act and/or the Labour Contract Act.
▻ Domestic workers are excluded from the Labour Standards Act but fall under the scope of the Labour Contract Act and therefore benefit from the general protection against abusive dismissal (LCA section 16).
▶ Labour Standards Act (LSA)
→ Section 21 of the LSA exclude some workers from the Advance notice for dismissal indicating that: The provisions of the preceding section [Advance Notice of Dismissal] do not apply to a worker falling under one of the following items; provided, however, that this is not the case with respect to a person falling under item (i) who has been employed consecutively for a period of more than one month, a person falling under either item (ii) or item (iii) who has been employed consecutively for more than the period set forth in the relevant item, nor a person falling under item (iv) who has been employed consecutively for a period of more than 14 days:
(i) a person hired on a day-to-day basis;
(ii) a person employed for a fixed period not longer than 2 months;
(iii) a person employed in seasonal work for a fixed period of not longer than 4 months;
(iv) a person who is in a probationary period.
→ Section 116(1): With the exception of the provisions of sections 1 through 11, paragraph (2) below, sections 117 through 119, and section 121, LSA shall not apply to mariners stipulated in paragraph (1) of section 1 of the Mariners Law (Act No. 100 of 1947) and businesses which employ only relatives who live together and domestic workers.
▷ The Labour Standards Act applies primarily to private-sector workers. National public servants in the general category and local public servants in the general category are governed by the National Public Service Act and the Local Public Service Act, respectively, and are therefore excluded from the scope of the LSA (and from the Trade Union Act and the Labour Relations Adjustment Act).
For more details, see ILO Sectoral Activities Working Paper: https://www.ilo.org/public/libdoc/ilo/2004/104B09_258_engl.pdf, pages 6-9.
▶ Labour Contract Act (LCA) - (as amended in 2018)
→ Section 20(1) of LCA as revised in 2018 indicates that: The provisions of section 12 and the preceding section do not apply to mariners, to whom the Mariners Act (Act No. 100 of 1947) applies.
→ Section 21 of LCA: provides that the Act does not apply to national or local public servants (§ 21(1)), and a labour contract if an employer only employs a family member (s) who lives with the employer (§ 21(2).
▷ Note I: Domestic workers are excluded from the Labour Standards Act (LSA, section 116(1)) but fall under the scope of the Labour Contract Act (LCA).
▻ Employers’ family members living in the same household are excluded from both the LSA and the LCA.
▷ Note II: National public servants and local public servants in the general category are excluded from the scope of the Labour Standards Act (LSA). They are governed by the National Public Service Act and the Local Public Service Act, respectively.

Obligation to provide reasons to the employee: Yes

Valid grounds (justified dismissal):

Remarks

Prohibited grounds: marital status, pregnancy, maternity leave, filing a complaint against the employer, temporary work injury or illness, race, sex, religion, social origin, nationality/national origin, trade union membership and activities, disability, others, parental leave, whistle blowing

Remarks

▶ Constitutional rule
→ Section 14 of the Japanese Constitution prohibits discrimination in political, economic or social relations on the grounds of race, creed, sex, social status or family origin.
▶ Labour Standards Act (LSA) - (as amended in 2020)
→ Section 3 of LSA prohibits discriminatory treatment with respect to wages, working hours or other working conditions on the grounds of the nationality, creed or social status of any worker.
→ Section 19(1) of LSA: Employers shall not dismiss a worker during a period of absence from work for medical treatment with respect to injuries or illnesses suffered in the course of employment, nor within 30 days thereafter, and shall not dismiss any woman during the period of absence from work before and after childbirth in accordance with section 65, nor 30 days thereafter. If an employee is dismissed during the above-mentioned periods, such dismissal will be void. However, this shall not apply in the event that the employer pays compensation for discontinuance in accordance with section 81, nor when the continuance of the business has become impossible due to a natural disaster or other unavoidable reasons, subject to approval of the relevant government agency (section 19(2)).
→ Section 104 of LSA: In the event that a violation of this Act or of an ordinance issued pursuant to this Act exists at a workplace, a worker may report such fact to the relevant government agency or to a labour standards inspector. Employers shall not dismiss a worker or give a worker other disadvantageous treatment by reason of such worker having made a report set forth in the preceding paragraph.
▷ Note: Although political opinion is not listed as a prohibited ground under section 3 of LSA, it has been held that the term "creed" includes both political and religious beliefs(1).
*******
((1) see Tadashi A. Hanami, Fumito Komiya, Yamakawa, R: 'Japan', in R. Blanpain (ed.): International encyclopaedia for labour law and industrial relations (The Hague, Kluwer Law International, 2015), § 252, p. 147).
*******
▷ "Nationality" is also generally interpreted to include the concept of race(2).
*******
(2) Ibid, citing the Hitachi Seisakujo case, The Yokohama District Court, 1974, HJ, No. 744, p. 29.
*******
▶ Act on Equal Opportunity and Treatment between Men and Women in Employment (Equal Employment Opportunity Act) - (as amended in 2019)
→ Section 6 of the Equal Employment Opportunity Act, as amended in 2019, provides that employers shall not discriminate against workers on the basis of sex, with regard to dismissal and renewal of the labour contract
→ Section 9(2)(3)(4) for the prohibition of dismissal on the grounds of marriage, by reason of pregnancy, childbirth or for requesting absence from work, having taken absence from work of the same act, or by other reasons relating to pregnancy and childbirth.
→ Section 9(4) also provides that dismissal of women workers who are pregnant or in the first year after childbirth shall be void. However, this shall not apply in the event that the employers prove that dismissals are not for reasons prescribed in the preceding paragraph.
▶ Labour Union Act (LUA) - (as amended in 2005)
→ Section 7 LUA prohibits dismissal based on trade union activities and membership. The employer shall not commit the acts of unfair labour practice, including dismissing of a worker by reason of such worker's being a member of a labour union, having tried to join or organize a labour union, or having performed justifiable acts of a labour union; (...).
▶ Act to Facilitate the Employment of Persons with Disabilities (AFEPD)
→ Section 74-6 of the AFEPD indicates that :
(1) Having been asked for assistance in the resolution of a dispute as prescribed in the preceding section by one or both of the parties to that dispute, the director of the prefectural labour bureau may give the necessary advice, guidance, or recommendations to the parties to the relevant dispute.
(2) An employer must not dismiss a worker with a disability or otherwise subject that worker to disadvantageous treatment on the grounds that the worker has asked for the assistance referred to in the preceding paragraph.
▷ Note: Under the guidelines established based on this Act, the following dismissals are prohibited:
a) dismissing workers with disabilities by reason of their disabilities; b) putting unfavourable conditions only on persons with disabilities when setting conditions for dismissals; and
c) prioritizing those with disabilities among employees who meet the conditions for dismissals.
▶ Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (as amended by Act No. 58 of 2021, effective 1 April 2022)
→ Section 10 of the Childcare Act prohibits dismissal of a worker making an application for, and being on, childcare leave or caregiver leave.
→ Section 16-10 of the Childcare Act, employers must not dismiss or disadvantage a worker who requests not to work overtime while caring for a child under three years of age.
→ Section 16-9(1) of the Childcare Act extends the protection to workers caring for a family member in need of caregiving, prohibiting employers from dismissing or otherwise treating such workers disadvantageously for requesting exemption from overtime work.
→ Sections 19, 20 and 20-2 of the Childcare Care Act prohibit employers from dismissing or otherwise treating a worker disadvantageously for requesting exemption from late-night work (10 p.m. to 5 a.m.) in order to care for a child before elementary school or a family member requiring caregiving.
→ Section 23-2 of the Childcare Act prohibits employers from dismissing or otherwise treating a worker disadvantageously for requesting measures to shorten prescribed working hours (or other equivalent measures) to care for a child under three years of age or a family member requiring caregiving.
→ Section 52-4(2): Employers must not dismiss or otherwise treat a worker disadvantageously due to said worker having asked for the assistance in the resolution of a dispute, advice, guidance or recommendations regarding the dispute; or made an application for administrative mediation under section 52-5.
▶ Act on Improvement of Personnel Management and Conversion of Employment Status for Part-Time Workers and Fixed-Term Workers (PTW-FTW Act) - (as amended in 2018)
→ Section 14 of the PTW-FTW Act prohibits dismissal or other unfavourable treatment of a part-time/fixed-term worker for the having requested information regarding their treatments, in accordance with section 14(1) and (2) which oblige employers to explain to part time/fixed-term workers about their treatments (upon recruitment, and also when the worker requests information on the difference of treatment compared to regular workers; including on the difference from regular workers and reasons for it) (Section 14(3)).
→ Section 24 of the PTA also prohibits dismissal or other unfavourable treatment of a part-time/fixed-term worker who has requested assistance from the Directors of Prefectural Labour Bureaux in the resolution of a dispute through advice, guidance or recommendations, or through mediation.
▶ Act on Promoting the Resolution of Individual Labour Disputes (2004) prohibits dismissals or other unfavourable treatment of a worker who has requested assistance from the Director of the Prefectural Labour Bureau in the resolution of an individual labour dispute through advice or guidance, or through conciliation (sections 4(3) and 5(2)).
▶ Whistle-blower Protection Act (2004) - (as amended in 2025)
→ New Section 3 (2025) of the Whistle-blower Protection Act provides for the nullity of dismissal of a whistleblower, indicating that: (1)The business operator provided for in paragraph (1), item (i) of the preceding section must not dismiss or otherwise treat in a disadvantageous manner a whistleblower who is or was employed by the business operator on the grounds of conducting whistleblowing provided for in each of the following items in the cases stated in the respective items: (...).
(2) Dismissal or other disadvantageous treatment (in the case of disadvantageous treatment other than dismissal, limited to disciplinary action (meaning sanctions specified by the business operator in the rules of employment pursuant to the provisions of section 89 of the Labour Standards Act (limited to the part relating to item (ix)) or sanctions specified in the labour contract between the business operator and the workers); referred to as "specific disadvantageous treatment such as dismissal" in the following paragraph and section 21, paragraph (1)) by an business operator provided for in paragraph (1), item (i) of the preceding section in violation of the provisions of the preceding paragraph is void.
(3) If a whistleblower is subjected to specific disadvantageous treatment such as dismissal within one year from the day on which the whistleblower conducts a whistleblowing provided for in the items of paragraph (1) (or, if the business operator provided for in paragraph (1), item (i) of the preceding section carries out the specific disadvantageous treatment such as dismissal with the knowledge that a whistleblowing provided for in paragraph (1), item (ii) or (iii) has been made, within one year from the day on which the business operator comes to know of the whistleblowing), with regard to the application of the provisions of the preceding paragraph, the specific disadvantageous treatment such as dismissal is presumed to have been carried out on the grounds that the whistleblowing was made.
▶ Employment Measures Act (EMA), as amended in 2019, prohibits dismissals or other unfavourable treatment of a worker who has consulted with the employer concerning power harassment (section 30-2(2) EMA).

Workers enjoying special protection: workers' representatives, pregnant women and/or women on maternity leave, workers with a long period of service, workers with disabilities, workers on temporary leave following an occupational disease or a work injury

Remarks

▶ Labour Union Act (LUA) - (as amended in 2005)
▻ Workers' representatives / Trade union members: Protected against dismissal or disadvantageous treatment for union membership, activities or justifiable acts (§ 7 LUA).
▶ Act on Equal Opportunity and Treatment between Men and Women in Employment (Equal Employment Opportunity Act) - (as amended in 2019)
▻ Pregnant women and women on maternity leave: Dismissal is prohibited in case of pregnancy and during maternity leave. Such dismissal is void unless the employer proves it is not related to pregnancy or childbirth (§ 9 Equal Employment Opportunity Act, and § 19 LSA).
▶ Labour Standards Act (LSA) - (as amended in 2020)
▻ Workers absent due to maternity or work-related injury or illness: Dismissal is prohibited during the period of maternity or work-related medical treatment (Labour Standards Act, § 19).
▶ Act to Facilitate the Employment of Persons with Disabilities (AFEPD)
▻ Workers with disabilities: Protected against dismissal or disadvantageous treatment on the grounds of disability (§ 74-6 AFEPD).
▶ Whistleblower Protection Act (as amended by Act No. 62 of 2025)
▻ Whistle-blowers: Dismissal or disadvantageous treatment on grounds of whistleblowing is null and void (§ 3), with a presumption of retaliation if dismissal occurs within one year. (§ 3).
▶ Act on Promoting the Resolution of Individual Labour Disputes (2004)
▻ Workers requesting assistance in individual labour disputes: Protected against dismissal or disadvantageous treatment for requesting advice, guidance, recommendations or mediation from the Prefectural Labour Bureau (§§ 4(3) and 5(2).
▶ Act on Improvement of Personnel Management and Conversion of Employment Status for Part-Time Workers and Fixed-Term Workers (PTW-FTW Act) - (as amended in 2018)
▻ Dismissal of a part-time/fixed-term worker for having requested information regarding their treatments (§ 14(3)) or assistance from the Directors of Prefectural Labour Bureaux in the resolution of a dispute (§ 24) is prohibited.
▶ Employment Measures Act (EMA), as amended in 2019
▻ Workers consulting on power harassment: Protected against dismissal or disadvantageous treatment for consulting the employer concerning power harassment (§ 30-2(2) EMA).
⫸ For more detailed information, see the section above titled "valid and prohibited grounds for dismissal".

Notification to the worker to be dismissed: no specific form required

Remarks

▶ Labour Standards Act (LSA) - (as amended in 2020)
Note: There is no specification on the form of the notice.
→ Under section 20(1) LSA, if an employer wishes to dismiss a worker, the employer must provide at least 30 days' advance notice.
Also, under section 22 LSA:
(1) If, on the occasion of separation from employment, a worker requests a certificate stating the period of employment, kind of occupation, position in the business, wages, or reason for separation (including the grounds for dismissal, if dismissal is the reason for separation), the employer must deliver one without delay.
(2) If a worker requests a certificate giving the grounds for dismissal during the period between the day on which the worker is given the advance notice of dismissal referred to in section 20, paragraph (1) and the day of separation from employment, the employer must deliver this without delay; provided, however, that if, on or after the day that the worker receives advance notice of dismissal, the worker is separated from employment for reasons other than the dismissal in question, the employer is not required to deliver such a certificate on or after the day on which the worker is separated from employment. (...).

Notice period:

Remarks

▶ Labour Standards Act (as amended in 2020)
→ Section 20 LSA indicates that:
(1) If an employer wishes to dismiss a worker, the employer must provide at least 30 days' advance notice. An employer not giving 30 days' advance notice must pay the worker the average wage they would earn in working for a period of at least 30 days; provided, however, that this does not apply if business continuance has become impossible due to a natural disaster or any other compelling reason, nor does it apply if the worker is dismissed for reasons attributable to the worker.
(2)The number of days of advance notice set forth in the preceding paragraph may be shortened if the employer pays the worker the average wage they would earn for each day of work by which the advance notice period is shortened.
(3)The provisions of paragraph (2) of the preceding section apply mutatis mutandis to a case as referred to in the proviso to paragraph (1).
Remarks:
→ Under section 21 LSA, the requirement for 30-day advance notice shall not apply to any worker falling under one of the following items; provided, however, that this is not the case with respect to a person falling under item (i) who has been employed consecutively for a period of more than one month, a person falling under either item (ii) or item (iii) who has been employed consecutively for more than the period set forth in the relevant item, nor a person falling under item (iv) who has been employed consecutively for a period of more than 14 days:
(i) a person hired on a day-to-day basis;
(ii) a person employed for a fixed period not longer than 2 months;
(iii) a person employed in seasonal work for a fixed period of not longer than 4 months;
(iv) a person who is in a probationary period.
▶ Civil Code (CC) (as amended in 2021)
▷ Domestic workers and employers’ family members
▻ With regard to domestic workers and employers’ family members who are excluded from the scope of LSA, the notice period under the Civil Code applies: Both parties can terminate an employment contract of indefinite duration at will, provided that two weeks' notice is given (section 627(1), CC).
→ Section 627(1) CC indicates that: If the parties have not specified a term of employment, either party may give notice of termination at any time. In such cases, employment terminates on the expiration of two weeks from the day of the notice of termination.
▶ Labour Contract Law (LCA) - (as amended in 2021)
▷ FTCs:
→ Section 17(1) of LCA provides that: With regard to a labour contract that has a fixed term (hereinafter referred to in this Chapter as a "fixed-term labour contract"), an Employer may not dismiss a Worker until the expiration of the term of such labour contract, unless there are unavoidable circumstances.

tenure ≥ 6 months:

  • All: 30 day(s).

tenure ≥ 9 months:

  • All: 30 day(s).

tenure ≥ 2 years:

  • All: 30 day(s).

tenure ≥ 4 years:

  • All: 30 day(s).

tenure ≥ 5 years:

  • All: 30 day(s).

tenure ≥ 10 years:

  • All: 30 day(s).

tenure ≥ 20 years:

  • All: 30 day(s).

Pay in lieu of notice: Yes

Remarks

▶ Labour Standards Act (LSA) - (as amended in 2020)
→ Section 20 LSA indicates that:
(1) If an employer wishes to dismiss a worker, the employer must provide at least 30 days' advance notice. An employer not giving 30 days' advance notice must pay the worker the average wage they would earn in working for a period of at least 30 days; provided, however, that this does not apply if business continuance has become impossible due to a natural disaster or any other compelling reason, nor does it apply if the worker is dismissed for reasons attributable to the worker.
(2)The number of days of advance notice set forth in the preceding paragraph may be shortened if the employer pays the worker the average wage they would earn for each day of work by which the advance notice period is shortened.
(3)The provisions of paragraph (2) of the preceding section apply mutatis mutandis to a case as referred to in the proviso to paragraph (1).

Notification to the public administration: No

Remarks

▷ Note: Exception for foreign workers:
Notification to the public administration is not required for individual dismissals in principle.
▶ Employment Measures Act (as amended in 2014)
However, section 28 of the Employment Measures Act requires an employer who employs a foreign worker to notify the local public employment office in cases of his/her separation from the job (§ 28(1)) using a model notification form issued by the Ministry of Health, Labour and Welfare.
Upon receipt of the form, the Government, through local employment offices, shall endeavour to promote the improvement of employment management and re-employment of the foreign workers concerned through guidance, advisory, employment placement, and skills development services targeting both employers and workers (§ 28(2)).
▻ In addition: Clause 6 of the Notification No. 276 of the Ministry of Health Labour and Welfare (Guidelines for Employers on the Proper Management of Foreign Workers' Employment), details measures to be taken by employers of foreign workers in order to prevent dismissals and, in case of dismissals, to endeavour to provide necessary assistance to enable foreign workers to be re-employed, in coordination with local public employment offices.

Notification to workers' representatives: No

Remarks

▷ There is no statutory provision requiring employers’ notification to workers’ representatives.
▶ Labour Standard Act (LSA) (as amended in 2020)
→ However, section 89 of LSA requires employers who continuously employ 10 or more workers to draw up work rules covering, among others, matters pertaining to termination of employment, including grounds for dismissal (§ 89(iii)) and if disciplinary measures are set up and matters pertaining to their nature and limits, and to submit those work rules to the relevant government agency (local labour inspectorate).
→ Section 90 of LSA requires employers, in drawing up or changing the rules of employment, to consult with and seek opinions of either a labour union organized by a majority of the workers at the workplace concerned (in cases where such labour union exists), or a person representing a majority of the workers (in cases where such union does not exist). Prior consultation may be included in a collective agreement or work rules, which then bind the parties to notify workers’ representatives/unions.

Approval by public administration or judicial bodies: No

▶ Labour Standards Act (LSA) - (as amended in 2020)
▷ No administrative approval is required for ordinary dismissal without 30 days’ advance notice (§ 20 LSA).
▻ However, an employer who wishes to dismiss a worker during a protected period of absence due to a work-related injury/illness or maternity leave (and the 30 days thereafter) must obtain the approval of the relevant government agency with respect to the reason (§ 19(2) LSA).

Approval by workers' representatives: No

No statutory provisions were found in the examined legislation in this respect.

Definition of collective dismissal (number of employees concerned) ▷ The term of collective dismissal is not statutorily defined.
⫸ “The courts have developed four criteria for determining whether dismissal for economic reasons is valid. Those criteria are (i) whether there was a genuine financial need to reduce the workforce, (ii) whether the employer made a reasonable effort to avoid dismissal, (iii) whether the employer bargained or consulted with the unions, and (iv) whether the standards by which he selected the employees for dismissal were reasonable and whether the employees were in fact selected in accordance with that standard [The Toyo Sanso case, the Tokyo High Court in 1979, RMS, Vol. 30, No. 5, p. 1002].
▷ Where an employer reduces the workforce by more than 30 employees through dismissal or retirement in one establishment in any one month because of a reduction of scale of operations or some other reason, he/she must give notice to the Public Employment Security Office one month prior to the date of that workforce reduction. However, where the entire reduction does not occur at the same time, notice may be given prior to the date of the last dismissal or retirement. If the employer fails to do this, he can be fined. The purpose of this requirement is to make it easy for the Government to take action, to promote the employment of redundant workers through employment security agencies and public vocational training agencies (the Enforcement Ordinance of the EMA)”.
_____________
See Tadashi A. Hanami, Fumito Komiya; Yamakawa, R: "Japan", in R. Blanpain (ed.): International encyclopaedia for labour law and industrial relations (The Hague, Kluwer Law International, 2015.
▶ Employment Measures Act (EMA) - (as modified in 2019)
→ Section 24(1) provides that: If an employer carries out a downscaling of its operations, etc. prescribed by Ordinance of the Ministry of Health, Labour and Welfare that is expected to compel a considerable number of its workers to separate from employment at any of its places of business, the employer must formulate a plan for measures to support such workers in finding new employment (hereinafter referred to as a "New Employment Support Plan") pursuant to the provisions of Ordinance of the Ministry of Health, Labour and Welfare. (...).
▶ Ministry of Health, Labour and Welfare Ordinance No. 83 of 2018: Enforcement Ordinance of the EMA (Ordinance No. 83)
→ Section 7-2 of the Ordinance No. 83 indicates that: 7-2 The reduction in business scale, etc. prescribed by the Ministry of Health, Labour and Welfare Ordinance under section 24, paragraph 1 of the Act is a reduction in business scale, etc. prescribed in section 6, paragraph 2 of the Act due to economic circumstances, and the implementation of such reduction in business scale, etc. results in 30 or more regularly employed workers leaving their jobs at one business establishment within a one-month period.

Remarks

⫸ This threshold applies to the compulsory notification to the Public Employment Office and the establishment of a re-employment assistance plan in the event of workforce reduction within one month due to economic reasons, as set out in section 24 of the EMA.
→ Under section 7-2 of the Ordinance No. 83 the requirement for establishing a plan is applicable to the workforce reduction affecting more than 30 employees within one month due to economic reasons.
▻ Note that this plan can be voluntarily submitted by establishments with fewer than 30 employees.
▷ Notification of Large Fluctuations in Employment
In addition, regardless of the reasons for dismissal, notification to the Public Employment Office is required for collective dismissals affecting more than 30 employees within one month (§ 8 of the EMA's Enforcement Ordinance). However, if the workforce reduction is not due to economic reasons, the establishment and submission of a plan is not required.
▶ Employment Measures Act (EMA) - (as modified in 2019)
→ Section 27 EMA indicates that:
(1) Before there is a fluctuation in the volume of employment (meaning the separation from employment of a considerable number of workers within a certain period of time due to such reasons as downscaling of operations) at an employer's place of business which falls under a case prescribed by Order of the Ministry of Health, Labour and Welfare (hereinafter referred to as a "large fluctuation in employment" in this section), the employer must notify the Minister of Health, Labour and Welfare of the number of workers to be separated from employment and of any other particulars prescribed by Order of the Ministry of Health, Labour and Welfare, pursuant to the provisions of Order of the Ministry of Health, Labour and Welfare.
(2) The provisions of the preceding paragraph do not apply to large fluctuations in employment involving the national government or a local government. In this case, the appointer (including a person who has been delegated and exercises appointive power; the same applies in paragraph (3) of the following section) of the national government or a local government is to give notice to the Minister of Health, Labour and Welfare prior to the large fluctuation in employment pursuant to the provisions of the Cabinet Order.
(3) Upon receipt of a notification under paragraph (1) or a notice under the preceding paragraph, the national government is to endeavour to facilitate the reemployment of workers affected by such notification or notice by taking the following measures:
(i) having an employment security agency provide employment information to the workers and other relevant persons and conduct extensive searches for job openings and place workers in jobs, prior to the workers' separation from employment and at the request of the worker, while maintaining close liaison with the employment security agency; and
(ii) having a public human resources development facility provide necessary vocational training to the workers.
▶ Ministry of Health, Labour and Welfare Ordinance No. 83 of 2018: Enforcement Ordinance of the EMA (Ordinance No. 83)
→ Section 8 of the Ordinance No. 83 states that: The cases specified by the Ministry of Health, Labour and Welfare Ordinance under section 27, paragraph 1 of the Act are those in which, within a period of one month or less, the number of persons who leave their jobs for reasons not attributable to their own convenience or fault (excluding persons who leave their jobs because the continuation of the business becomes impossible due to natural disasters or other unavoidable circumstances) is 30 or more, excluding persons who fall under any of the following items and persons who have already been notified or informed pursuant to the provisions of section 27, paragraph 1 or 2 of the Act.
1. Persons employed on a daily basis or for a fixed period (excluding persons employed on a daily basis or for a period of six months or less who have been continuously employed by the same employer for more than six months, and persons employed for a period exceeding six months who have been continuously employed by the same employer beyond said period).
2. Persons in the probationary period (excluding those who have been continuously employed by the same employer for more than 14 days)
3. Persons employed as persons not required to perform regular duties.
_____________
See detailed description of the purpose of this statutory requirement and how it is linked to the employment stabilization measures taken by the Government in case of mass economic dismissal, from Tadashi A. Hanami, Fumito Komiya, Yamakawa, R.: "Japan", in R. Blanpain (ed.): International encyclopaedia for labour law and industrial relations (The Hague, Kluwer Law International, 2015): pages 137-138.
_________
The purpose of this requirement is to make it easy for the Government to take action, to promote the employment of redundant workers through employment security agencies and public vocational training agencies.

Notification to the public administration Yes

Remarks

⫸ "Yes" for collective dismissals due to economic reasons involving more than 30 employees within one month for the establishment of a re-employment assistance plan (§ 24(2) EMA).
⫸ "No" for ordinary collective dismissals.
▶ Employment Measures Act (EMA) - (as modified in 2019)
→ Section 24 EMA indicates that:
(1) If an employer carries out a downscaling of its operations, etc. prescribed by Ordinance of the Ministry of Health, Labour and Welfare that is expected to compel a considerable number of its workers to separate from employment at any of its places of business, the employer must formulate a plan for measures to support such workers in finding new employment (hereinafter referred to as a "New Employment Support Plan") pursuant to the provisions of Ordinance of the Ministry of Health, Labour and Welfare.
(2) In formulating a New Employment Support Plan pursuant to the provisions of the preceding paragraph, the employer must hear the opinion of the labour union, if the place of business under the New Employment Support Plan has a labour union composed of a majority of the workers, or must otherwise hear the opinion of a representative of the majority of the workers, if the place of business does not have such a labour union. The same applies if the employer seeks to modify the New Employment Support Plan. (...).

Notification to trade union (workers' representatives) Yes

Remarks

⫸ "Yes", only in case of reduction of more than 30 employees.
▶ Employment Measures Act (EMA) - (as modified in 2019)
Statutory obligation to notify the Minister of Labour in the event of workforce reduction involving more than 30 employees within one month (§ 27(1) EMA).
In addition, the employer must establish a "re-employment assistance plan" and submit it for approval to the Chief of the Public Employment Security Office (§ 24 of EMA) if the workforce reduction is due to economic reasons.

Notification to workers' representatives: Yes

Remarks

▷ In case of a dismissal of 30 employees or more within one month due to economic reasons, statutory obligations exist to consult with the trade union or workers’ representatives on the "re-employment assistance plan" (§ 24(2) of EMA).
▶ Employment Measures Act (EMA) - (as modified in 2019)
→ Section 24(2) EMA indicates that: In formulating a reemployment assistance plan pursuant to the provisions of the preceding paragraph, an employer must hear the opinion of the labour union if the place of business associated with the reemployment assistance plan has a labour union composed of a majority of workers, or must hear the opinion of a representative of a majority of workers if the place of business does not have such a labour union. The same applies if the employer seeks to modify the reemployment assistance plan.
▷ In addition, according to case-law, mandatory information to, and consultation with, the trade union on the reasons for dismissal, timing, scale, and methods are among the requirements that must be satisfied for an adjustment dismissal (regardless of the threshold) to be considered valid.

Approval by trade union (workers' representatives) Yes

Remarks

Administrative authorization of the dismissal is not required.
The employer is only required to obtain the approval of the administration with regard to the "re-employment assistance plan" (§ 24(3) of EMA) in cases of a dismissal of 30 employees or more within a month due to economic reasons.
▶ Employment Measures Act (EMA) - (as modified in 2019)
→ Section 24(3) EMA indicates that: Upon formulating a reemployment assistance plan pursuant to the provisions of the preceding two paragraphs, an employer must submit the plan to the head of the relevant public employment security office for approval pursuant to the provisions of Order of the Ministry of Health, Labour and Welfare. The same applies if the employer modifies the reemployment assistance plan.

Approval by workers' representatives No

Remarks

No statutory provisions were found in the examined legislation in this respect.

Priority rules for collective dismissals (social considerations, age, job tenure) No

Remarks

⫸ There is no statutory rule that requires employers to apply specific priority criteria (such as age, job tenure, family situation, or social considerations) when selecting workers for collective dismissal for economic reasons.
⫸ However, under established case law, the employer must use reasonable and objective selection criteria for an economic dismissal to be considered valid. Courts typically examine whether the selection took into account factors such as length of service (job tenure), age, family responsibilities, performance, and other social considerations, and whether the process was fair and non-discriminatory.

Employer's obligation to consider alternatives to dismissal (transfers, retraining...) No

Remarks

⫸ There is no statutory rule requiring the employer to give priority to previously dismissed workers when hiring new employees. The employer is only required to formulate an "Employment Support Plan" to assist the dismissed workers in finding new employment with other employers (§ 24 EMA).

Priority rules for re-employment No

Remarks

⫸ There is no statutory obligation to consider alternatives to dismissal (such as internal transfers or retraining within the company). The employer is only required to formulate a New Employment Support Plan to assist workers in finding new employment outside the undertaking (§ 24 EMA).
⫸ However, under established case law, making reasonable efforts to avoid dismissal is one of the four requirements for an economic dismissal to be considered valid.
▷ Remarks: The New Employment Support Plan (required under section 24 of the EMA) is not considered an obligation to explore alternatives to avoid dismissal.
▻ It is a post-decision measure: it only applies after the employer has already decided to carry out the downscaling/collective dismissal.
Its purpose is to help the affected workers find new employment elsewhere (re-employment support, vocational training, job placement assistance, etc.).
▻ It does not require the employer to consider internal transfers, retraining for continued employment in the same company, reduced working hours, or any other measures aimed at preventing dismissal.

tenure ≥ 6 months: 0 month(s).

tenure ≥ 9 months: 0 month(s).

tenure ≥ 1 year: 0 month(s).

tenure ≥ 2 years: 0 month(s).

tenure ≥ 4 years: 0 month(s).

tenure ≥ 5 years: 0 month(s).

tenure ≥ 10 years: 0 month(s).

tenure ≥ 20 years: 0 month(s).

tenure ≥ 6 months: 0 month(s).

tenure ≥ 9 months: 0 month(s).

tenure ≥ 1 year: 0 month(s).

tenure ≥ 2 years: 0 month(s).

tenure ≥ 4 years: 0 month(s).

tenure ≥ 5 years: 0 month(s).

tenure ≥ 10 years: 0 month(s).

tenure ≥ 20 years: 0 month(s).

Notes

No statutory severance pay or redundancy payment.
Collective agreements may provide for severance pay in case of dismissals.

mine workers: No

⫸ Unfair/Abusive dismissal: compensation in lieu of reinstatement is not a statutory remedy. However, monetary orders/settlements can be rendered by the ordinary courts, labour tribunal procedures, and administrative conciliation. The courts usually render judgment prescribing reinstatement when they find the dismissal cases abusive under the doctrine of abusive dismissal. The courts also order, together with reinstatement, payment of unpaid wages, plus interest, from the date of dismissal to the date of final oral argument before the court, and order continuation of monthly payments accruing each month after the date of final oral argument until the issuance of the judgment.
⫸ However, the courts also award monetary settlements when it is difficult in practice for workers to return to work due to the deterioration of their relationships with their employers. Labour tribunal procedures are preferred by workers who seek monetary awards or settlements without reinstatement. Monetary settlements are also possible through administrative conciliation/mediation, but the amount obtained is usually lower than that available through labour tribunal procedures.
_____________
See Tadashi A. Hanami, Fumito Komiya, Yamakawa, R.: "Japan", in R. Blanpain (ed.): International encyclopaedia for labour law and industrial relations (The Hague, Kluwer Law International, 2015; and Yamakawa, R. “Japan” in ILO (2016) Resolving individual labour disputes: a comparative overview.

: No

No statutory provisions were found in the examined legislation in this respect.

No

No statutory provisions were found in the examined legislation in this respect.

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method): There is no statutory limits or calculation method other than dismissal cases without statutorily prescribed notice period.

managerial / executive positions: Yes

▶ Labour Contract Act (LCA)
→ Section 16 LCA indicates that: "A dismissal shall, if it lacks objectively reasonable grounds and is not considered to be appropriate in general societal terms, be treated as an abuse of rights and be invalid".
⫸ However, if the dismissed worker requests, it is possible for them to seek a monetary settlement through administrative conciliation/mediation and adjudication through labour tribunal procedures or the civil courts. See above for detailed descriptions.

police: Yes

▶ Act on Promoting the Resolution of Individual Labour-Related Disputes - 2004 (Labour Dispute Act)
→ Section 2 of the Labour Dispute Act sets out the principle of voluntary settlement of disputes, indicating that: If an individual labour-related dispute arises, the disputing parties shall endeavour promptly and in good faith to achieve a voluntary resolution.
▶ Labour Tribunal Act (LTA) - (as amended in 2023)
→ Section 1 LTA indicates that: The purpose of this Act is to establish procedures whereby, with regard to a dispute concerning civil affairs arising between an individual employee and an employer about whether or not a labour contract exists or about any other matters in connection to labour relations (hereinafter referred to as "civil disputes arising from individual labour relations"), a labour tribunal held in a court of law and composed of a judge and persons with expert knowledge and experience in labour relations hears the case at the petition of the relevant party, and whereby if the case is likely to be resolved through conciliation, said labour tribunal attempts conciliation, but if the case fails to be resolved, the labour tribunal renders a labour tribunal decision (meaning a decision that is necessary for resolving a civil dispute arising from individual labour relations in accordance with the circumstances of the case while taking into account the rights and interests between the parties; the same applies hereinafter) (such procedures are hereinafter referred to as "labour tribunal proceedings"), thereby achieving prompt, proper, and effective dispute resolution in accordance with the actual circumstances of the dispute.
▷ Administrative conciliation/mediation is offered by local (prefectural) labour bureaus and local labour relations commissions.
In employment discrimination disputes (disputes related to the EEOA, the Disability Employment Promotion Act, the Part-Time Work Act and the Child and Family Care Leave Act), administrative mediation can be initiated upon request by one of the disputing parties. For other individual labour disputes, administrative conciliation is voluntary, subject to the parties’ consent.

The parties can choose to access any of the following bodies:
▷ Ordinary courts: Workers who wish to obtain reinstatement tend to access ordinary courts.
▷ Labour tribunal procedures within the ordinary courts
▶ Labour Tribunal Act (as amended in 2023)
The Labour Tribunal, consisting of a judge and persons with expert knowledge and experience in labour relations, hears the case in a court of law. The panel initially attempts to resolve labour disputes through mediation; if no settlement is reached, it proceeds to adjudicate the case and render an award (§ 1 LTA).
→ Section 7 LTA indicates that: The court conducts labour tribunal proceedings under a labour tribunal composed of one labour tribunal judge and two labour tribunal members.
→ Section 8 LTA provides that: Labour tribunal judges are designated by the district court from among its judges
▶ Act on Promoting the Resolution of Individual Labour-Related Disputes (2004)
▷ Dispute Coordinating Committee established in Prefectural Labour Bureaus offers mediation that can be initiated at the request of both parties (§§ 2 -6).
▷ Prefectural Labour bureaus also provide counselling and information services, administrative guidance or recommendations to the disputing parties to facilitate voluntary resolution of disputes by the parties themselves.
▶ Labour Relations Adjustment Act (2004)
Labour Relations Commissions (LRCs), originally established under the Trade Union Act, also offer mediation and conciliation for labour disputes. The LRCs comprise members representing employers’ and workers’ organizations and those representing public interests (labour law and industrial relations experts). However, not all the LRCs provide conciliation for individual labour disputes. Each commission comprises neutral experts in labour and employment law.
▷ Government agency or to a labour standards inspector:
▶ Labour Standards Act (LSA) - (as amended in 2020)
While the labour inspectorates are responsible for compliance with the LSA and do not have the function of resolving individual labour disputes, they play a role in preventing individual labour disputes through monitoring and correcting violations of statutory provisions regulating termination of employment, including illegal dismissal through recommendations and enforcement (e.g. dismissals without notice, employers’ obligations to draw up work rules) under the LSA. Workers can also turn to the labour inspectorates (§ 104 of LSA).
→ Section 104 of LSA provides that in the event that a violation of this Act or of an ordinance issued pursuant to this Act exists at a workplace, a worker may report such fact to the relevant government agency or to a labour standards inspector.
⫸ Moreover, collective agreements, which may include grievance and joint consultation procedures between employers and enterprise-based unions, play an important role in preventing disputes in unionised workplaces. However, the role of collective agreements and joint consultation has weakened due to the decline in union density.
▶ Act on Equal Opportunity and Treatment between Men and Women in Employment
For termination disputes involving discrimination, see special procedures on Voluntary Resolution of Complaints and conciliation under Chapter III Dispute Resolution (§§ 15-27)
________
See Yamakawa, R. “Japan” in ILO (2016) Resolving individual labour disputes: a comparative overview.

Existing arbitration: No

No statutory provisions were found in the examined legislation in this respect.
▷ Note: The Arbitration Act (Act No. 138 of 2003) was amended by Act No. 15 of 2023. Individual labour disputes (including dismissal cases) remain excluded from this Act as of 2023.

Length of procedure:

No information was found in this respect.

▷ No statutory "explicit" provisions were found in the examined legislation in this respect.
⫸ However, note should be taken of section 16 of the Labour Contract Act, which stipulates that if a dismissal lacks objectively reasonable grounds and is not considered appropriate in general societal terms, it is treated as an abuse of rights and is invalid.


No information was found in this respect.