Is it always Ok not to renew a limited term employment contract when the term is expired? Employers usually choose ‘limited term contract’ for the purpose of workload adjustment. That is, when the business is booming, workforce is in scarce, but when business is declining, the workforce is sometimes redundant. So, it happens that employers … Continue reading “About non-renewal of limited term employment contract (Yatoidome)”
Category: Dismissal
How difficult is it to lay-off or dismiss workers for economic reasons?
Dismissal due to economic reasons also known as ‘redundancy’ is called ‘Seiri-Kaiko’ in Japan. Colloquially, it is often referred as ‘Risutora’ (Short for restructuring). Companies can sometimes have a situation where plant closing, retreat from the market, or by other reasons, reducing workforce is really necessary. In these cases, as in the ‘prohibition of non-rational … Continue reading “How difficult is it to lay-off or dismiss workers for economic reasons?”
Prohibition of non-rational dismissal based on Employment Contract Act
Is it extremely tough to dismiss an employee because of one’s poor performance? The answer is in most cases ‘yes’. Article 16 of Labor Contracts Act (below) , stipulates that dismissal lacking rational grounds is invalid. If a dismissal lacks objectively reasonable grounds and is not considered to be appropriate in general societal terms, it is … Continue reading “Prohibition of non-rational dismissal based on Employment Contract Act”
Statutory restrictions on dismissal
There are two types of restrictions for terminating employees in Japan. Type one is statutory restriction based on LSA and related laws, the other is prohibition of non-rational dismissal based on employment contract law. Following items are examples of statutory restrictions. (1) Dismissal during a period of absence from work for in jur ies or … Continue reading “Statutory restrictions on dismissal”