Obligation to Designate the Period of Annual Paid Leave
Starting from April, 2019, the Labor Standards Law has made several amendments, in which companies should first take action to let employees take at least 5 days of annual paid leave. As we have introduced the basic knowledge of annual paid leave in our News, September 30, 2018, please confirm the detail of the amendment in this News.
2. Obligation to designate the period of taking annual paid leave
In principle, employees first apply to their companies for paid leave. However, most employees hesitate to take holidays for fear of inconveniencing colleagues or their heavy workload. From these backgrounds, starting from April, 2019, all companies are now obligated to ensure their employees who are granted 10 days or more of annual paid leave take at least 5 days of annual paid leave during the period designated by companies. However, companies are not obligated to designate the period for employees who have already taken more than 5 days of paid leave.
3. Designation of the period
In designating the period of annual paid leave, companies should consider employees’ preferences. Compulsive designation is not recommended. (Best efforts must be made.)
4. Required Ledgers
Currently, the statutory ledgers consist of the roster of workers, the wage ledger, and the attendance book. In addition to these ledgers, companies are now required to prepare for the “annual paid leave” ledger, in which the period when the worker has taken paid holidays, the number of paid holidays he/she has used, and the number of granted days for each employee. The annual paid leave ledger should be maintained for three years as well as other statutory documents.
Companies with the high rate of paid leave taking will be fully ready for this new rule. On the other hand, companies with the low rate of paid leave taking should deal with this amendment more comprehensively such as the timing of each employee’s paid holidays.
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.
Ministry of Health, Labour, and Welfare “Obligation to Designate the Period of Annual Paid Leave” (Japanese)