The government plans to expand the range of companies required to provide written contracts when hiring freelancers, in a bid to increase legal protections for such workers.
The move addresses difficulties freelancers face, such as cases in which oral agreements are reached but then unilaterally canceled, and comes as their incomes' have been declining during the coronavirus pandemic.
The government is planning to submit a revised bill in next year's Diet session.
The law governing subcontracting requires companies with over 10 million yen in capital to provide written contracts when placing orders with freelance workers. Under the law, which stipulates fair practices in subcontracting work, the companies must clearly indicate details such as fee amounts and payment dates.
However, companies with 10 million yen or less in capital are exempt from the requirement.
A government survey conducted in February and March last year found that about 40% of freelancers experienced trouble such as unsettled payments or unilateral changes of delivery dates after they received orders from companies.
Of those who experienced difficulties, about 60% said agreements were only made orally. Written contracts were not exchanged or emailed. In cases in which documents were exchanged, the details were often insufficient.
It is believed that in many cases freelancers finally gave up without voicing complaints when in these situations.
In a bid to prevent such troubles, the government concluded it was also necessary to require companies with 10 million yen or less in capital to prepare and archive written contracts that stipulate the detailed conditions of business transactions made with freelance workers.
The government will conduct investigations to determine the scale of companies that place orders with freelancers. Based on the results, officials will consider the range of company sizes to be included for the requirement to issue written contracts.
Some officials floated the idea of establishing a new law rather than revising the subcontract law.
Freelancers work in a wide range of occupations, including computer programming, interpreting and writing. It is estimated that there are about 4.62 million freelancers nationwide, and their numbers are likely to grow as work styles become increasingly diverse. The expected increase prompted the government to strengthen support for freelancers.
In April, the government included actors, actresses and other entertainers, as well as animators, to be covered by workers' compensation insurance for workplace accidents.
Starting in September, bicycle delivery workers and information technology engineers will also be covered by the insurance program.
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