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Labor Policy

Labor Policy. Keiichiro HAMAGUCHI. Chapter 2. Working Conditions Policy. Section 4. Employment Contract Policy. (1) Civil Code. 1896 Civil Code defined employment contract as exchange of service and remuneration. CC set 5 years limit on the length of contract (Art.626).

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Labor Policy

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  1. Labor Policy Keiichiro HAMAGUCHI

  2. Chapter 2 Working Conditions Policy

  3. Section 4 Employment Contract Policy

  4. (1) Civil Code • 1896 Civil Code defined employment contract as exchange of service and remuneration. • CC set 5 years limit on the length of contract (Art.626). • CC declared “employment at will” principle with just 2 weeks notice period (Art. 627).

  5. (2) Labor Standards Law and its revision • 1947 Labor Standards Law set 1 year limit on the length of contract and 30 days notice period. • Study Group on Labor Standards Law Report advocated extension to 5 years. • 1998 revised LSL set exceptional 3 years limit for professionals. • 2003 revised LSL set normal 3 years limit and exceptional 5 years limit for professionals.

  6. (3) Fixed-term labor contract issues • Employment protection of open-ended contract made fixed-term contract precarious. • 1974 Supreme Court Judgment protected some repeatedly renewed contract. • 2000 Guidelines on Renewal of Fixed-term Contract had no binging effect. • 2003 revised LSL and its Guidelines required employers clarification on renewal and 30 days notice period. • 2007 Labor Contract Law obliged employers to consider on renewal of fixed-term contract.

  7. (4) Dismissals • CC declared “employment at will” principle with just 2 weeks notice period (Art. 627). • Case law established doctrine of abusive dismissal and 4 requirements on redundancy. • 1982 ILO Convention No.158 on Termination required valid reason. • 2003 revised LSL legislated the doctrine of abusive dismissal. • The provision was transferred to 2007 Labor Contract Law.

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