On April 14th, Health, Labor and Welfare Ministry disclosed the establishment of the study group by specialist of labor laws to clarify the rules on labor contracts such as external assignment and personnel relocation. The scope of the study group includes the proposal of new laws. Currently labor disputes are increasing due to the lack of legal rules on labor contracts, change of industry structure and diversification of working style such as increase of temporary workers. In 2nd half of 2002, there were 54,500 labor disputes which Labor Standards Inspection Office involved in throughout the country (increase of 13,000 cases compared to the same period of last year).

In addition to that, it has been pointed out that judgments of many labor disputes have depended on related precedents and existing laws do not cover current labor disputes fully. The study group is scheduled to clarify directions by autumn of 2005. But labor side is cautious about the introduction of new laws by which employers enable to terminate employment contracts easily.

( April 15, 2004 )

In 156th Diet session, the amendment of Labor Standard Law was adopted and passed. Following are the main point of changes;

1. Upper limit of labor contract period is extended.
2. Clarification of rules on dismissal
On dismissal is added the article "In case of the lack of an objective and logical reason based upon social convention, the execution of the right is construed as "abuse" and the execution shall be invalid". (Until now, there was no article specifying the effectiveness of dismissal right.) We cannot expect drastic changes in future trials by the amendment since judgments in past trails have been made based on the concept of the new article. But the legislation of the concept may change mind of workers.

3. Obligation of clarifying grounds of dismissal
Until now, employers has had obligations in clarifying grounds on retirement (dismissal) based on the request from employees. But the amendment allows employees to claim a certification on dismissal with the grounds. Employers have the obligation to comply with the claim upon request.

4. Addition of "grounds of dismissal" to working rules
The amendment clarifies that "grounds of dismissal" must be added to "the article on dismissal" which is an essential article of working rules.

( Jan 1, 2004 )

Insurance payment on work-related disasters to proprietors with fewer than five employees by health insurance

Work-related disasters are not applicable to health insurance since Health Insurance Law does not permit insurance payment for injuries or diseases due to work-related disasters.

On the other hands, representatives or managers of small corporations are not entitled to receive insurance payment based on Worker's Accident Compensation Insurance Law because they are not construed as employees according to Labor Standard Law.

But representatives who are representatives of corporation called "extremely small business" is now allowed to receive health insurance payment for work-related injuries from July 1st, 2003 as a temporary measure with the condition that they are involved in similar job to their employees after it was found that there was no difference in working condition between them and individual business.
( Jul 1, 2004 )

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