January 28, 2008
The Tokyo District Court on January 28 ordered McDonald’s Holdings Co. (Japan) Ltd to pay about 7.5 million yen in back pay for overtime work to a manager at one of its restaurants.
The judge supported the plaintiff’s claim that McDonald’s treated him in violation of the Labor Standards Law.
When Takano Hiroshi was promoted to manager at McDonald’s outlet in Saitama Prefecture in October 1999, he was treated as supervisor and therefore was not entitled to overtime pay.
Takano argued that he doesn’t have any important job responsibility. In addition, even though he works more than 100 hours of overtime a month, his salary is lower than his co-workers’. Insisting that he is not in a supervisory position exempt from the right to overtime pay by law, he filed the lawsuit demanding back pay for up to two years of overtime work.
Under the Labor Standards Law, employees in administrative or supervisory positions can be exempt from overtime pay. A Labor Ministry directive defines employees in an “administrative or supervisory position” as persons in positions that are integral to management.
In the ruling the judge pointed out that an outlet manager like Takano cannot be regarded as a supervisor because his duties and responsibilities are limited to affairs of the workplace and because he doesn’t take part in decision-making concerning business operations. The judge also recognized that Takano is eligible to claim overtime pay.
The ruling will have effect on 1,700 McDonald’s managers throughout Japan and on other fast-food and convenience store chains as well.
The judge supported the plaintiff’s claim that McDonald’s treated him in violation of the Labor Standards Law.
When Takano Hiroshi was promoted to manager at McDonald’s outlet in Saitama Prefecture in October 1999, he was treated as supervisor and therefore was not entitled to overtime pay.
Takano argued that he doesn’t have any important job responsibility. In addition, even though he works more than 100 hours of overtime a month, his salary is lower than his co-workers’. Insisting that he is not in a supervisory position exempt from the right to overtime pay by law, he filed the lawsuit demanding back pay for up to two years of overtime work.
Under the Labor Standards Law, employees in administrative or supervisory positions can be exempt from overtime pay. A Labor Ministry directive defines employees in an “administrative or supervisory position” as persons in positions that are integral to management.
In the ruling the judge pointed out that an outlet manager like Takano cannot be regarded as a supervisor because his duties and responsibilities are limited to affairs of the workplace and because he doesn’t take part in decision-making concerning business operations. The judge also recognized that Takano is eligible to claim overtime pay.
The ruling will have effect on 1,700 McDonald’s managers throughout Japan and on other fast-food and convenience store chains as well.
