HR and Labour

Rule for converting employment contracts from fixed-term to indefinite-term

By Nobuhiro Kotou

Last month several major news reports were published regarding labour laws, including reports that the Japanese Trade Union Confederation (Rengo) had approved (and later retracted their approval of) the “highly-skilled professional system” (also reported as the “zero overtime pay system”) that excludes certain high-earning professionals from being subject to regulations regarding work hours, including the payment of overtime, as well as reports that the Ministry of Health, Labour and Welfare had issued warnings regarding illegal overtime to approximately 10,000 workplaces during the 2016 fiscal year. Yet, an event that will likely see reporting of much greater impact around April of next year is the “rule for converting labour contracts from fixed-term to indefinite-term” (i.e. the “indefinite-term conversion rule”) coming into practical effect.

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