ITEE ITEE-1 | Page 56

The Labor Standards Act is a piece of legislation whose purpose is to protect the rights of all employed working persons, including full-time employees, dispatched staff, and part-time workers. The Dispatched Workers Act is distinguished from the Labor Standards Act in that it focuses on the “rights of dispatched workers” who are not entirely covered by existing legislation. (3)Confidentiality agreement A “confidentiality agreement” is an agreement in which a party who may be exposed to confidential information agrees not to use information obtained through the course of duties for other than the specified purposes, and agrees not to leak the information to a third party. This type of agreement is also called an “NDA (Non-Disclosure Agreement).” It is common to exchange a confidentiality agreement when dispatching a worker or outsourcing work. The main elements of a confidentiality agreement are summarized below. • Specific information covered • Method of management • Terms for disclosure to third parties when outsourcing • Permissibility or prohibition of reproduction • Purpose of use • Obligation to return or destroy materials Dispatching and Contracting “Dispatching” refers to engaging a worker who is employed by the dispatching company to perform labor for the client under the instructions of the client. Dispatching company Employment relationship Dispatch contract Worker Client Instruction relationship “Contracting” refers to engaging a worker who is employed by the contractor to perform labor for the client under the instructions of the contractor. Contractor Employment relationship Instruction relationship Service contract Corporate and legal affairs • Re-examination of limitation for dispatching period • Re-examination of employment system for dispatched workers by client company • Expansion of dispatch work • Re-examination of the work of the person responsible from the dispatching company • Re-examination of the duties of the person responsible from the client Reference Chapter 1 (2) Dispatched Workers Act ( Act for Securing the Proper Operation of Worker Dispatching Undertakings and Improved Working Conditions for Dispatched Workers.) The “Dispatched Workers Act” is officially known as the “Act for Securing the Proper Operation of Worker Dispatching Undertakings and Improved Working Conditions for Dispatched Workers.” The purpose of this legislation is to set forth the rules to observe for dispatching companies and client companies in order to protect the working rights of dispatched staff. The Dispatched Workers Act was revised in June 2003. The content of the revisions are summarized below. Client Worker Reference Temporary Transfer A “temporary transfer” occurs when a person is temporarily transferred to a subsidiary or other affiliated company, or a business partner while remaining a registered employee of the original company. There are two types of temporary transfers. One is a “retention of employment” method in which the person has an employment contract with both the transferring company and the company being transferred to. The other is a “transfer of employment” method in which the person only has an employment contract with the company being transferred to. Reference NDA Abbreviation for “Non-Disclosure Agreement.” 50