1. Introduction
The amended Labor Standards Act will be phased in from April 2019. We have already mentioned the obligation of taking five-day annual leave in the News dated 28 December 2018. In this News, we will mention the amendment about the settlement period of the flextime system.

2. Current labor act
A flextime system is a working style that allows employees to determine the starting and ending time of work within the working hours designated by employers. A flextime system is beneficial for employees because they can coordinate their working schedule with their private time and as a result enhance their performance and productivity.
While employees can receive benefits of the flextime system under the current labor act, the settlement period (the period for calculating employees’ aggregate working hours and overtime hours under the flextime system) is capped at one month. That is, employees are not allowed to allocate their working hours over the period of one-month.

3. Points of reform
Due to the reform, the settlement period for the flextime system will increase to three months, which means that employees can adjust their working schedule more flexibly in the period of three months including the busy season and the non-busy season. With the extension of the settlement period, employees can spend more time for individuals or families at a certain time according to their needs and achieve a better work-life balance.

4. Submission of reports of labor management agreement
In cases where the settlement period exceeds one month, the reports of labor management agreement must be submitted to the Labor Standard Inspection Office. In detail, the following procedures will be required:
a) Stipulation in the rules of employment;
b) Specifications of certain matters in the labor management agreement; and
c) Submission of the reports of labor management agreement

5. Conclusion
In this News, we have mentioned the “Points of Flextime System Reform.” 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)
Ministry of Health, Labour, and Welfare
Guidance for Flextime System (Japanese)
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/0000148322_00001.html
（Accessed on March 25, 2019）