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2018-01-22
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Japan tightens overtime law that takes effect in 2019

¡iĶ¤å¡jThe death of a female employee at an advertising company caused by overwork three years ago had aroused public attention to overtime work among the Japanese society. As millennials enter the labor market carrying with them a widely felt discontent about the old workplace culture, employers are forced to adjust their corporate policies as a response. The Japanese government even proposed capping overtime at 60 hours per month and imposing penalties on offenders early last year. The policies are expected to take effect from April 2019.

Most of the working class in Japan work too long. Employees of the advertising industry always push themselves to the limit to meet deadlines, so do those working in the auditing units in accountancy firms, which has caused a high turnover rate. Forced by peer pressure and social expectation on working attitude, new starters work around the clock as a token of dedication. Those who hold job stability paramount as in traditional corporate culture, as long as reasonably paid, would remain loyal regardless of how long they work.

It is known that Japanese workers seldom finish work earlier than their seniors. That's why they spend long hours at workplaces.

What the 80s, 90s and 00s generations seek, however, is no longer job stability, but on-the-job training and work-life balance.

Maximum of 60 hours per month

According to the Article 36 of the Labor Standards Act in Japan, if an agreement was signed between the employer and the employee, the person may work overtime for no more than 45 hours a month; but laws might be evaded by a specific consensus. The revised policy strictly caps overtime at 60 hours per month and the employer is legally bound.

The British Broadcasting Corporation (BBC) indicates that Japan's economic growth heavily depends on increasing productivity, but enterprises are reluctant to invest in relevant technologies that help boost it and allow employees to work outside the workplaces. Some might have limited working hours, but this is not supported by supplementary measures. Employees' workload remains unchanged. They would have to start working earlier and sacrifice lunch time, or even take business home.

Zero-hour contract gains traction

With a shift in economic model, the idea of "zero-hour contract", a form of employment that offers more flexibility in job arrangement for both sides, has emerged in recent years. Workers choose when to work and are paid on an hourly basis, while employers are not obliged to set minimum working hours. The UK's Office for National Statistics estimates that a record 910,000 people were hired as such in 2016-about 105,000 or 14% more than that in 2015.

Analysts of certain British think tanks believe that "zero-hour contract" provides flexibility for students, parents and workers who must take care of their families, and such kind of employment does not necessarily come at their expense. It may also help would-be retirees transit from full-time employment to retirement by avoiding sudden loss of income.¡½Ãe¹Å»ö

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