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Work Style Reforms Law in Japan

Work Style Reforms Law in Japan

What is Work style reform law ?

Overworking in Japan is becoming social problem. So, Japanese government is trying to solve this problem.

That is why in 1st, April, 2019, work style reform law (働き方改革法=reform of way of working =hataraki kata kaikaku hou) has become effective. (Partially)

After this enforcement, your company needs to follow amended labor standard law (Rodo kijun hou) more strictly.

Otherwise, criminal punishment is subject to you.

Difference of application of this law

As for application of law, there are difference between big company (dai kigyo) and small and medium sized company (Chu-sho kigyo =中小企業.”small company”).

As for limitation of overtime work (zangyo jikan), this amended law is applied from 1st, April, 2019 for big company.

However for small company, as for limitation of overtime work (zangyo jikan), this amended law is applied from 1st, April, 2020.

So, you would like to become small company until 2020.

What is Big corporation and small company

In the case purpose of business is “retailer or service industry”, if registered capital amount is 50 million yen or less, it is included in small company.

In the case purpose of business is “wholesaler industry”, if registered capital amount is 100 million yen or less, it is included in small company.

In the case purpose of business is other business, if registered capital amount is 300 million yen or less, it is included in small company.

However even if registered capital amount is more than above mentioned amount, depending on the number of full time employees, the company can be included in small company.

Retailing business (Kouri gyo = 小売業)50 or less
Service industry100 or less
Wholesaler (Oroshi uri)100 or less
Other business300 or less

How to avoid application of this amended law for one year

Even if the number of full time employees of your company is 50 etc, your company may be able to avoid application of this amended law until 2020.

Your company can reduce registered capital amount to below 50 million yen etc.

Depending on situation of your company, necessary cost will be 100,000 yen or less (includng fee for shihoshoshi lawyer).

So, you can contact me to reduce registered capital amount of your company without delay.
(shihoshoshi lawyer AKIYAMA ginzasihoushosi(a)yahoo.co.jp
tel: o3-3536-5691)

Announcement of financial result

By the way, in the case of KK company (Kabushiki kaisha), it is required to announce publicly result of financial statement every year.

If your company has determined that “this company shall make public notice in official gazette”, it needs to publish result of financial statement (balance sheet etc of your company) in news paper published by Japanese government.

So, it will cost some money. (50,000 to 100,000 yen)

If you want to change it into other way, it is possible. Your company can conduct it via internet. In that case, your company can save 50,000 to 100,000 yen.

(So, you can contact me to save the cost. Shihoshoshi lawyer AKIYAMA ginzasihoushosi(a)yahoo.co.jp tel: o3-3536-5691))

If your company has not fulfilled such obligation (public notice), in order to reduce registered capital amount, it needs to satisfy such obligation.

So, it may cost 100,000 yen to 200,000 yen to make public notice.

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