Japan aims to develop an environment in which diverse human resources can exercise their abilities and perform well by reviewing the nation's labor practices, whose negative effects have been conspicuous. It is hoped that the work style reform related laws will serve as an opportunity to achieve this aim.
The legislation -- regarded by the government as the most important agenda item in the current Diet session -- has been enacted into law with the passage by the House of Councillors at its plenary session, with a majority vote mainly from the Liberal Democratic Party and its ruling coalition partner Komeito as well as Nippon Ishin no Kai and Kibo no To (Party of Hope).
The main pillars of the laws are a cap on overtime hours with penalties for violators and the promotion of a system of "equal pay for equal work." These measures will be implemented in stages from next fiscal year.
The legislation is intended to correct long working hours by setting a limit on overtime hours, which effectively had no restrictions. This is the most major reform since the Labor Standards Law was established in 1947. It is also designed to improve the treatment of non-regular workers, which has large disparities with the treatment of regular employees. It is highly significant that the laws have paved the way for resolving the long-standing issue.
To maintain the vitality of society and the economy amid a decline in the nation's working population, it is essential to encourage women and elderly people to join the workforce by promoting work styles that will also enable them to strike a balance between work and child-rearing or caregiving.
Constant long working hours have hampered the active participation of diverse human resources and undermined the nation's productivity. They have also resulted in such tragedies as suicides induced by overwork. The expansion of employment of non-regular workers, whose status is unstable with lower pay, has also led to sluggish consumption and become a factor for a falling birthrate.
Focus on productivity
The overtime cap is almost up to the so-called karoshi line, a critical point for determining death from overwork. Some people have criticized the cap as too lenient, but it goes without saying that this does not mean that working overtime up to the limit can be justified.
The related laws also include a system under which companies will be responsible for giving their employees a certain number of paid holidays. As for the introduction of an "interval system" intended to secure a certain length of time between the end and start of work, companies are required to make efforts. Companies should strive to reduce working hours as much as possible.
Regarding the system of equal pay for equal work, a ban on unreasonable disparities attributable to employment status has been specified more clearly. Companies will be obliged to account for disparities in the treatment of employees.
It is hoped that a system of treatment that is acceptable for both regular and non-regular workers will be established through thorough labor-management discussions.
A "post-hourly pay" system, in which some highly skilled, highly paid professionals are exempt from work-hour regulations, will also be newly introduced.
There has been an increase in the number of jobs, such as in research and development, in which there is not necessarily a correlation between time spent working and actual accomplishments. Under the current system in which the longer people work, the more they earn, those who work efficiently are put at a disadvantage. It is reasonable to separate pay and working hours in limited job categories.
There have been persistent concerns that ending overtime pay could encourage long working hours. The new system requires companies to take measures to secure the health of employees who are subject to it. Proper operation of the system is urged.
It is important to have the perspective of stressing productivity, which will be enhanced through the work style reform, to boost companies' growth potential.
(From The Yomiuri Shimbun, June 30, 2018)
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