(Japanse Labor Regulation)

Rules of Employment

What is Rules of Employment?
The Labour Standards Law stipulates in detail the responsibility of the employer to establish employment regulations (Rule of Employment) and the requirements for such regulations, the matters that must be listed, consideration of the opinions of employee representatives regarding the establishment and amendment of employment regulations, etc.

Rule of Employment is stipulayed in the article 89~93 under the Labour Standard Law as follows:

(Responsibility for Drawing up and Submitting)
Article 89. An employer who continuously employs 10 or more workers shall draw up rules of employment covering the following items and shall submit those rules of employment to the administrative office. In the event that the employer alters the following items, the same shall apply:
(1) Matters pertaining to the times at which work begins and at which work ends, rest periods, rest days, leaves, and matters pertaining to the change in shifts when workers are employed in two or more shifts;
(2) Matters pertaining to the methods for determination, computation and payment of wages (excluding extraordinary wages and the like; hereinafter in this item the same qualification shall apply); the dates for closing accounts for wages and for payment of wages; and increases in wages;
(3) Matters pertaining to retirement;
(3-2) In the event that there are stipulations for retirement allowances, matters pertaining to the scope of workers covered; methods for determination, computation, and payment of retirement allowances; and the dates for payment of retirement allowances;
(4) In the event that there are stipulations for extraordinary wages and the like (but excluding retirement allowances) and/or minimum wage amounts, matters pertaining to such items;
(5) In the event that there are stipulations for having workers bear the cost of food, supplies for work, and other such expenses, matters pertaining to such items;
(6) In the event that there are stipulations concerning safety and health, matters pertaining to such items;
(7) In the event that there are stipulations concerning vocational training, matters pertaining to such items;
(8) In the event that there are stipulations concerning accident compensation and/or assistance for injury or illness outside the course of employment, matters pertaining to such items;
(9) In the event that there are stipulations concerning commendations and/or sanctions, matters pertaining to their kinds and limits;
(10) In the event that there are stipulations applicable to all workers at the workplace concerned on matters other than those contained in the preceding items, matters pertaining to such other items.

(Procedures for Drawing Up)
Article 90. In drawing up or changing the rules of employment, the employer shall ask the opinion of either a trade union organized by a majority of the workers at the workplace concerned where such a trade union exists, or a person representing a majority of the workers where no such trade union exists. 2. In submitting the rules of employment in accordance with the provisions of the preceding Article, the employer shall attach a document setting forth the opinion stipulated in the preceding paragraph.

(Restrictions on Sanction Provisions)
Article 91. In the event that the rules of employment provide for a decrease in wages as a sanction to a worker, the amount of decrease for a single occasion shall not exceed 50percent of the daily average wage, and also the total amount of decrease shall not exceed 10 percent of the total wages for a single pay period.

(Relation to Laws and Ordinances and to Collective Agreements)
Article 92. The rules of employment shall not infringe any laws and ordinances or any collective agreement applicable to the workplace concerned. 2. The administrative office may order the revision of rules of employment which conflict with laws and ordinances or with collective agreements.

(Validity)
Article 93. Labour contracts which stipulate working conditions inferior to the standards established by the rules of employment shall be invalid with respect to such portions. In such a case the portions which have become invalid shall be governed by the standards established by the rules of employment.