Extension of the maximum period for terminable employment contracts

On July 24, the Japanese government's Comprehensive Regulation Reform Conference issued an interim report, outlining concrete measures for implementing future regulation reforms. In the labor sector, the scope for which the term "temporary workers" applies will be expanded to include manufacturing operations. The government's aim is to diversify the employment format and style. In addition, the maximum period of terminable employment contracts will be extended to five years.

As far as terminable employment is concerned, the existing Labor Standards Law does not approve of employment contracts whose period exceeds one year, with the exception of a small number of highly specialized occupations.

The Tokyo Chamber of Commerce and Industry, meanwhile, drew up a Request on Labor Policies and submitted it to the Minister of Health, Labour and Welfare on July 12. The request includes the easing of dismissal regulations, the easing of requirements for introducing the flexible work hour system, and the extension of temporary work period.

The labor community opposes the extension of terminable employment contract period, insisting that it will lead to a greater number of unstable jobs.