1. In Japan, according to Article 15 of the Labor Standards Act, employers are obligated to disclose working conditions to employees. On April 1, 2024, the rules regarding disclosure of working conditions were revised.
2. Items that must be disclosed when concluding all labor contracts and when renewing fixed-term labor contracts
- Scope of changes in place of work and duties
In this rule change, in addition to the place of work and duties at the time of employment, the scope of changes of these conditions must be disclosed. The scope of changes refers to the range of place of work and duties that may change due to future transfers, etc.
3. Items that must be disclosed when concluding and renewing fixed-term labor contracts
- Presence and content of renewal limit (total contract period or maximum number of renewals)
When concluding a fixed-term labor contract, the presence and content of a renewal limit (total contract period or maximum number of renewals) must be disclosed as a specific content of the criteria for renewing a fixed-term labor contract. In Japan, due to the so-called employment termination rule (Article 19 of the Labor Contracts Act), companies may not be able to refuse to renew fixed-term labor contracts if there is a reasonable expectation of contract renewal.
Furthermore, if a new upper limit on renewal is set after the initial fixed-term labor contract is concluded, or if the upper limit on renewal set at the time of the initial contract is shortened, the company must explain this in advance.
4. Items that must be clearly stated when renewing a contract that triggers the right to apply for conversion to an indefinite contract based on the indefinite contract conversion rule
- Ability to apply for conversion to an indefinite contract and working conditions after conversion
In Japan, if the total contract period of a fixed-term labor contract exceeds five years, the employee may convert the employment contract to an indefinite contract (Article 18 of the Labor Contracts Act). In order to ensure opportunities of employees to apply for conversion to an indefinite contract, new rule requests employers to clearly state that an application for conversion to an indefinite contract is possible.
In addition, it is also necessary to clearly state the working conditions after conversion to an indefinite contract. If there are no changes to the working conditions after the conversion to an indefinite contract, it is sufficient to simply state that fact briefly, but if there are changes to the working conditions, the working conditions after the conversion to an indefinite contract must be clearly stated without omission.
5. Conclusion
I introduced briefly the changes to the rules as to indication of working conditions.
I provide support to Japanese and foreign companies regarding Japanese labor law, and I often receive consultations regarding the notice of working conditions introduced here. Japan’s labor law is complex and often abstract, so in order to deal with workers appropriately, I would like you to receive support from an expert to confirm the correct knowledge.
