◆The average settlement pay is 279,681 yen
Ministry of Health, Labour and Welfare disclosed
the settlement standard in the severance disputes. They surveyed the total of 1,500 cases of mediation by prefectural Labor Bureaus, arbitration and tribunal decision by the labor tribunal and reconciliation by the Court of Justice. MHLW is scheduled to develop the highly foreseeable dispute settlement system based on this survey. They are going to have a reviewing period for about more than one year from now and make a necessary legal system.
According to the survey, about the one third of the settlement pay of the mediation by a Labor Bureaus is concentrated between 100,000 yen and 200,000 yen and if the pay less than 100,000 yen or less is included, the vast majority of it is less than 200,000 yen or less. The average settlement pay is 279,681 yen and the median value is 156,400 yen.
◆The settlement of Labor Bureaus is cheap but labor tribunal decisions and trials tend to be expensive.
More than half of the settlement pay for the arbitration and tribunal decision is concentrated on the two hierarchies of from 500,000 yen to 1,000,000 yen or less and from 1,000,000 yen to 2,000,000 yen or less. The average is 2,297,119 yen and the median value is 1,100,000 yen.
The court settlement pay is distributed from 500,000 yen to 10,000,000 yen in a plateau form and the expensive settlement occurs frequently. In average, it is 4,507,660 yen and the median value is 2,301,357 yen.
In general, the settlement of Labor Bureaus is cheap but labor tribunal decision and trial tend to be expensive. The settlement of trials is twice as an expensive level as that for labor tribunal decisions.
Analyzing the settlement pay based on the length of service of employee, the more the length of service becomes long, the more the settlement pay becomes expensive in Labor Bureau but there seems to be no difference in the labor tribunal decisions and trials. However, even Labor Bureau, the settlement pay doesn’t increase so much with the increase in the length of service of employee and even if the length of service is ten times of now, the settlement pay doesn’t become twice.
There wasn’t a big difference in the pay depending on sex, the company size and the settlement period but if we see it from employment patterns, the level of the pay given tended to be high for regular employees (compared with non-regular employees, temporary workers and workers in probation period).
◆The pay settlement is overwhelmingly adopted in all organizations.
This survey is subject to 853 mediations by 4 Labor Bureaus, 452 arbitrations and tribunal decisions by 4 district courts’ labor tribunal and 193 civil settlement cases by 4 district courts.
The pay settlement is overwhelmingly adopted in all organizations. Reconciliation ratio by the pay is 97% in Labor Bureaus, 96% in labor tribunal, 90% in courts. There were few cases that could reinstate employees.
The revised version of “Japan Restoration Strategy” approved by the Cabinet in June in 2014 showed that they should analyze and organize the case of reconciliation.
Refer to the linked URLs for details.
http://no-pawahara.mhlw.go.jp/funsou/funsou_main
http://www.jil.go.jp/institute/reports/2015/0174.html