Obligation to clarify the "Right to request the Conversion1 " and the "Terms and conditions of employment applicable after the Conversion" associated with the amendment to the Regulation for Enforcement of the Labor Standards Act ―Amendments to the rules concerning clarification of conditions of employment of April 2024―

Contents

I. What is the Conversion Rule?

II. Amendments to the obligation to clarify the points to fixed-term employees concerning the Conversion Rule

  1. Obligation to clarify to fixed-term employees their eligibility to request the Conversion
  2. Obligation to clarify the terms and conditions of employment which will be applied after the Conversion

III. Points of practical operations

  1.  Timing, method of clarification, and sample description
  2. "Other provision" of terms and conditions of employment applicable after the Conversion

IV. Penalty for a breach of the obligation to clarify certain points to fixed-term employees concerning the Conversion Rule

V. Measures to be taken by the effective date

Introduction

Employers will be required to clarify additional specifications relating to employment upon the execution and the renewal of employment contacts on or after April 1, 2024.

This is required as a result of the promulgation and publication on March 30, 2023 of the "Ministerial Ordinance to Partially Amend the Regulation for Enforcement of the Labor Standards Act (the "LSA") and the Ordinance for Enforcement of the Act on Special Measures for Improvement of Working Hours Arrangements" (Ordinance of the Ministry of Health, Labor and Welfare No.39 of 2023) and the "Ministerial Notification regarding Partial Amendment of the Standards on Conclusion, Renewal and Termination of Employment Contracts for Fixed-Term Employees" (Notification of the Ministry of Health, Labor and Welfare No.114 of 2023) (the "Amendment" or the "Amendment Ministerial Ordinances") to amend the Ordinance for Enforcement of the LSA, and other laws and regulations.

In this newsletter, we will explain the new obligation to clarify to employees their eligibilities to request the Conversion and the terms and conditions of employment upon the renewal of a contract that gives rise to the Right to Request Conversion (defined chapter I below) based on the Conversion Rule. They should be clarified to fixed-term employees who are eligible to request the Conversion.

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*If the total term of a fixed-term employment contract with the same employer exceeds five years, an employee is eligible to request an application of the Conversion Rule.

Source: Leaflet by the Ministry of Health, Labor and Welfare "Rules concerning clarification of terms and conditions of employment will be changed in April 2024."

For a general explanation of the clarification of terms and conditions of employment and the amendment to the obligation to clarify the terms and conditions of employment upon the execution of all employment contracts and renewal of a fixed-term employment contract, see the related article below.

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Footnote

1. Rule concerning conversion of fixed-term employment contracts to employment contracts without a definite period (the "Conversion," wherefrom the "Conversion Rule"). In details, please refer to Chapter I below.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.