First,
mandatory worker protection legislation such
as the Labour Standards Law, the Occupational
Health and Safety Law, and the Minimum Wage
Law applies, as a general principle, to all
enterprises located in Japan, regardless of
whether they are owned by Japanese or foreign
nationals, and regardless of whether they
are incorporated in Japan or overseas. However,
the question of which country's laws apply
with regard to employment contracts is left
to the discretion of the parties to the contract,
as a general rule, so long as there is no
violation of public policy or of mandatory
laws or regulations covering international
labor relations. Consequently, whether the
laws of Japan or of the country in which the
headquarters of an overseas corporation is
located apply depends on which country's standards
are used as the basis for drawing up the employment
contract. There is a large number of judicial
precedents in which the selection of governing
law was not touched on but the laws of Japan
were held to apply in cases where the employee's
actual place of work is normally in Japan.
There have also been cases, in which mandatory
provisions such as the Labour Standards Law
and the employment contract are both involved,
where the connection between the selection
of governing law by the parties to the contract
and the scope of application of the mandatory
provisions became an issue.