It is an urgent task to rectify the practice of working long hours and develop an environment in which diverse human resources can play active roles in society, amid a shrinking workforce.
Revised laws related to work style reform will come into force from Monday in stages. The focus of the first stage is to establish an upper limit -- enforced with penalties -- on overtime working hours, which have been practically unlimited. This regulation will first be applied to major companies.
The common practice of working long hours has made it difficult to handle both work and child-rearing or nursing care, and has led to tragic cases of karoshi, or death from overwork. Reviewing the practice is likely to encourage women and elderly people to join the workforce and help maintain the nation's social and economic vitality. Diversifying the workforce is also important to enhance companies' creativity.
The upper limit on overtime work is based on the so-called karoshi line, a critical point for determining cases of death from overwork. Such a basis has been set out of consideration for temporary increases in workloads. This does not mean overwork up to the limit can be justified. Companies should strive to reduce overtime as much as possible.
At the same time, they are urged to improve productivity by eliminating wasteful operations and utilizing information technology to break away from management practices that rely on long working hours. Such efforts likely will raise their potential for growth. It is also desirable for them to take measures to maintain wage levels for employees without using overtime reductions to curb labor costs.
Oversight system needed
From fiscal 2020, new overtime regulations will be applied also to small and midsize companies. It will be no easy task for companies plagued by labor shortages to meet the regulations. The government needs to expand assistance to small and midsize companies to ensure smooth implementation of the new rules.
Relationships with clients that push companies to meet severe deadlines are also a factor behind an increase in overtime work. It is imperative to make business terms and practices appropriate. A guidance and oversight system must be strengthened.
Under the related laws, companies are obliged to have their employees take at least five paid holidays a year. The laws also oblige companies to make efforts to introduce an "interval system" to ensure a certain period of time between the end of one work shift and the start of the next. The system would be effective in keeping employees healthy and boosting their motivation.
A "highly professional" work system, in which high-income earners in some specialist professions are exempt from working-hour regulations, will also be launched.
In an increasing number of jobs, such as planning and development work, hours do not directly correspond to performance. It is reasonable for working hours to be separated from pay, depending on job categories.
Concern that such a system could force people to work longer remains strong, but its application requires obtaining their consent. Companies are required to take measures to ensure the good health of their employees subject to the system. It is important to operate the system appropriately.
A system of equal pay for equal work, one of the main pillars of the work style reform, will be implemented in stages from fiscal 2020. A scheme in which treatment and conditions between regular and non-regular workers are balanced must be established by holding thorough labor-management discussions.
(From The Yomiuri Shimbun, March 30, 2019)
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