Japan Press Weekly

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2013 June 5 - 11 [LABOR]

Gov’t panel proposes creation of a new ‘full-time regular position’ with easy dismissal rule

The government Council for Regulatory Reform on June 5 proposed the introduction of a new type of employment system which will allow employers to dismiss full-time workers more easily, leading to a further increase in unstable jobs.

Calling for a “reform in the existing full-time regular employment” system in a report submitted to the prime minister, the council demanded that the government begin discussing the creation of a new type of regular employment mechanism, a so-called “limited regular employment” system. The report recommends that the government give shape to the system within the next year.

“Limited regular employees” will be hired on full-time positions under contract which limits their duties, locations, and working hours. As contracts are open-ended, workers will assume that their employment position is not only stable but permanent.

However, because the new type employees’ contracts specify their duties and locations of employment, companies can easily dismiss this type of employee by only telling them that the factory will be closed at the location, for example. The Labor Ministry in its notification issued in August 2012 stated that workers who work under “limited” conditions are excluded from the existing regulations concerning dismissals of full-time workers.

Even if “limited regular employees” receive lower wages than full-fledged regular employees, it will be considered as proper because their contract details are limited.

An introduction of the new employment system will give big businesses another tool to reduce the number of full-time jobs. Those who have full-time positions at present will possibly be forced to choose between a “limited position” if they object to long working hours and being transferred to distant work places.