1-2-3 Laws on labor and transaction
Legislation concerning labor and transactions exist for the purpose of providing conditions for labor and transactions.
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Laws on Labor
The following sections describe examples of legislation that concern labor.
(1)Labor Standards Act
The “Labor Standards Act” is the basic piece of legislation that concerns
labor. In accordance with Article 27-2 (Working Conditions) of the Constitution of Japan, the Labor Standards Act prescribes the minimum standards
for working conditions that are needed. Working conditions for everyday
work must meet the standards prescribed in the Labor Standards Act such
as eight hours work per day, working overtime, payment of compensation,
and annual paid leave.
●Background of Labor Standards Act
Issues such as shorter working hours, adoption of two full days off per
week, full use of annual paid leave, and reduction of overtime labor are
major issues in Japan. For various reasons including competition with other companies in the same sector, transaction practices, and excessive service, it is difficult for individual companies to improve the situation through
their efforts alone. A legal system was therefore created in order to provide
an environment that facilitates further progress in shortening labor hours.
●Purpose of Labor Standards Act
The purpose of the Labor Standards Act is to protect workers, who are in a
socially and economically disadvantaged position compared with employers.
●Scope of application for Labor Standards Act
The Labor Standards Act applies to all nationalities and industries, and is
applicable when employing even a single worker who is not a relative. The
legislation protects workers but not employers (business operators).
●Prohibited actions and penal provisions
The Labor Standards Act provides the following penal provisions if an employer uses a worker under standards below what is prescribed in the Labor Standards Act.
Prohibited Act
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Penal Provisions
Forced labor
Imprisonment of not less than one year and not
more than 10 years, or a fine of not less than
200,000 yen and not more than 3,000,000 yen
Intermediate exploitation or violation of minimum age
Imprisonment of not more than one year, or a fine
of not more than 500,000 yen
Violation of equal treatment or
equal wages for men and women
Imprisonment of not more than six months, or a
fine of not more than 300,000 yen
Violation of contract period or
clear indication of working conditions
Fine of not more than 300,000 yen