1. Introduction

Due to the amendments to the Ordinance for Enforcement of the Labor Standards Act effective in April 2024 (the Amendments), the rules for explicit statements of working conditions will be changed. Employers are now required to add more details regarding working conditions when concluding or renewing an employment contract on or after 1 April 2024. In this News, we will mention the contents of new items to be specified on working conditions.

2. The scope of changes in the workplace and duties

Regarding the conclusion of all employment contracts and each renewal of fixed-term contracts, employers must now specify the scope of changes in the workplace and duties in the future in addition to the workplace and duties immediately upon hire. In detail, employers must stipulate any possible changes in the workplace and duties due to reassignment during the term of the employment contract. 

In addition, the stipulation of the scope of changes might differ, depending on how exactly the workplace and duties are limited under the contract. The following is an example of the notification.

【Example / In the case where there is no limitation in the workplace and duties】

・Workplace

    (Immediately upon hire) XX Office

    (The scope of changes) An office specified by the employer

・Required duties

    (Immediately upon hire) Duties related to XX

    (The scope of changes) Duties specified by the employer

3. Renewal limits of a fix-term employment contract

When concluding a fix-term employment contract, employers must stipulate the existence of the renewal contract and the standard for renewal. In addition, the renewal limits (the duration term and the maximum number of times for renewal of the fix-term employment contract) must be clarified. In case the renewal limits are established after the initial conclusion of the contract or the number of times for renewal is reduced, the employer must explain the reasons to the relevant worker in advance. If there are no renewal limits, no specification is required. However, it will be desirable to stipulate so from the point of clear understanding of the contract.

4. Indefinite employment conversion

In case a fix-term employment contract with the same employer (or the same company) has been renewed for more than five years, the worker can request the conversion of the fix-term contract to an indefinite-term contract. Due to the Amendments, the employer must explicit the worker’s right to apply for the conversion and the post-conversion working conditions on each timing for renewal.

5. Conclusion

In this News, we mentioned the “Amendments to the Notification of Working Conditions Effective in April 2024.”

The employer can apply the prior rules to contracts concluded on or before 31 March 2024. However, for avoiding troubles and promoting a deeper understanding of working conditions with workers, it is highly recommended that the new rules should be applied at an early stage.

Please note that this News only introduces general outlines and does not include professional advice. So please make sure not to make any decisions without taking professional advice individually. If you have any questions, please feel free to contact us.

(Reference / in Japanese)

Ministry of Health, Labour and Welfare

Amendments to the Notification of Working Conditions Effective in April 2024

https://www.mhlw.go.jp/stf/newpage_32105.html

Examples of Notification

https://www.mhlw.go.jp/content/11200000/001156048.pdf