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Labor Policy

Labor Policy. Keiichiro HAMAGUCHI. Chapter 2. Labor Market Policy. Section 1. Public and Private Placement Services. Regulation of private placement services and temporary work agencies in pre-war era. Japan’s placement service dates back Edo era.

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Labor Policy

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  1. Labor Policy Keiichiro HAMAGUCHI

  2. Chapter 2 Labor Market Policy

  3. Section 1 Public and Private Placement Services

  4. Regulation of private placement services and temporary work agencies in pre-war era • Japan’s placement service dates back Edo era. • 1921 Employment Placement Law put fee-charging placement businesses under governor’s permit. • 1938 revised EP Law put labor supply businesses under governor’s permit. • Influence of ILO Recommendation No.１

  5. (2) Free employment placement services and public employment placement offices in the pre-war era • First free placement service (non-profit) established in 1901. • 1921 EP Law made placement offices under municipalities. • 1938 revised EP Law nationalized placement offices. • Renamed to national labor mobilization offices under war regime.

  6. (3) Enactment of Employment Security Law – public employment placement services • 1947 Employment Security Law put public employment security offices of the State under governor’s supervision. • 1948 ILO Convention No.88 required “national system of employment office.” • Council for Regulatory Reform advocates privatization. • World trend is “welfare to work.”

  7. (4) Enactment of Employment Security Law – prohibition of fee-charging private placement businesses and labor supply businesses • 1947 ES Law prohibited most fee-charging placement businesses and all labor supply businesses. • 1933 ILO Convention No.34 required abolition of these businesses. 1949 ILO Convention No.96 relaxed it. • GHQ ordered eradication of labor bosses even in the form of sub-contract.

  8. (5) Restrictive liberalization of temporary work agencies • Administrative Management Agency recommended the liberalization in 1978. • Ministry of Labor considered it at Study Group from 1978 to 1984. • Worker Dispatching Law enacted in 1985 • The business restricted in specific jobs (positive list system) • Regular type and registration type

  9. (6) General liberalization of temporary work agencies • ILO Convention No.188 deregulated the businesses in 1997. • Worker Dispatching Law revised in 1999 • From positive list system to negative list system (except for manufacturing) • Setting of upper limit on the duration (1 year)

  10. (7) 2003 revision of the Law • Worker Dispatching Law revised again in 2003. • Worker Dispatching in manufacturing liberalized. • Extension of upper limit on the duration (from 1 year to 3 years).

  11. (8) Further proposed deregulation • Council for Regulatory Reform advocates: • complete abolition of upper limit of 3years, • abolition of obligation to propose direct employment, • abolition of prohibition of prior interview. • Council on Economic and Fiscal Policy also insists this policy. • 3.21 million dispatched workers in 2006.

  12. (9) Deregulation in fee-charging private placement businesses • Employment Security Law revised in 1999. • General prohibition on private placement businesses was abolished. • Upper limit on the placement fees deregulated. • 388,000 placement cases in 2006 (341,000 for fee-charging, 48,000 for non profit).

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