◆Support system for secondment
Companies that are temporarily downsizing their operations due to the effects of the new coronavirus infection are taking steps to use “secondment” (sometimes called “employment sharing” or “employee sharing”) with companies that are short on labor in order to maintain employment for their employees.
The Ministry of Health, Labor and Welfare (MHLW) has also introduced measures to support the efforts of such secondment for the purpose of maintaining employment at Corona Damages, which are introduced below.
◆What is secondment?
The so-called secondment refers to the process by which a worker, while maintaining some kind of relationship with the company from which he or she is transferred, enters into a new employment contract relationship with the company to which he or she is transferred, and continues to work for a certain period of time. The term “enrolled secondment” refers to a worker who signs an employment contract with both the company from which he/she was seconded and the company to which he/she was seconded.
◆Subsidies for stable industrial employment
The Ministry of Health, Labor and Welfare (MHLW) provides support for both the company from which the employee is transferred and the company to which the employee is transferred.
This subsidy is for employers who have been forced to temporarily reduce their business activities due to the effects of the new coronavirus infection, and who wish to maintain the employment of their workers through secondment. This subsidy was newly established on February 5, 2021.
The program subsidizes a part of the expenses required during the secondment, such as wages, education and training, and labor management coordination expenses, to be borne by the secondment employers and destination employers (secondment operating expenses). In addition, subsidies are also provided for measures required for the establishment of the secondment, such as the cost of preparing work rules and secondment contracts, education and training conducted in advance of the secondment by the originating employer, and the maintenance of equipment and supplies for the acceptance of the secondment by the destination employer (initial expenses for secondment).
Please keep in mind that this is a subsidy to maintain employment, so it is assumed that the employee will return to work at the original place of business after the secondment period is over.
◆Matching system
Other support measures include a matching system by Industrial Employment Stabilization Center of Japan. The Center provides free matching services for companies that have temporarily over-employed due to the effects of the new coronavirus and wish to utilize on-the-job secondment with companies that are short on manpower in order to protect the employment of their employees. (The Center has offices in 47 prefectures throughout Japan and provides consultation services to companies.)
