Reform on Labor Standards Act
The revised Labor Standards Act came into effect on and after April 1, 2010.
1. Overtime premium rate for any hours worked over 60 a month was raised from 25% to 50%. The premium corresponding to such raise can be substituted with paid holidays if there’s a labor-management agreement. However, Small and medium-sized enterprises(*) are not obligated to follow this revised act for now.
(*)Small and medium-sized enterprises are those that fall under below categories;
1) Retail company with capital of JPY 50,000,000 or less or employees of 50 or less
2) Service company with capital of JPY 50,000,000 or less or employees of 100 or less
3) Wholesale company with capital of JPY 100,000,000 or less or employees of 100 or less
4) Other company with capital of JPY 300,000,000 or less or employees of 300 or less
2. With a labor-management agreement, up to five paid holidays can be used by the hour.
