Japan to Introduce 1st Overtime Caps in Work Style Reform

Politics

Tokyo, March 26 (Jiji Press)--Most of the work style reform measures included in legislation enacted into law in Japan last year are set to take effect on Monday, with the start of the new fiscal year, including the first effective compulsory caps on overtime hours at major companies.

The reform will also obliges all companies to have their employees take at least five paid holidays a year, in a bid to redress long work hours.

But many companies are likely to face difficulty in implementing the reform measures at a time when labor shortages are becoming severe, pundits said.

Overtime will be limited to less than 100 hours a month per employee and a total of 720 hours a year. Companies will face penalties if they fail to abide by the regulation.

The overtime caps will take effect for small and midsize companies in April 2020.

[Copyright The Jiji Press, Ltd.]

Jiji Press