Status of the Law for Promoting the Resolution of Individual Labor Disputes, one year after its enactment

One year has passed since the Law for Promoting the Resolution of Individual Labor Disputes was enacted last October.

According to an announcement made by the Ministry of Health, Labour and Welfare, the system resulted in about 90,000 consultations on individual labor disputes throughout Japan during this period. In addition, there were about 4,000 cases that resulted in advice, guidance, and mediations, showing that the system is being used as actively as the courts.

Reflecting the tough economic and employment circumstances seen of late in Japan, the largest number of consultations pertained to dismissal (28.5%), followed by wage cuts and other reductions in labor conditions (17.4%), and stimulating retirement (5.9%). As seen, a marked characteristic is the large number of consultations related to corporate restructuring.

In response, overall labor consultants provide information and help resolve problems through mutual discussions. If no settlement is reached, applications are to be filed with the Dispute Adjustments Committee. A total of 2,115 such applications were filed requesting arbitration by the said Committee. The largest number of mediation requests concerned dismissal (41.8%), followed by wage cuts and other reductions in labor conditions (14.3%), bullying and harassment (5.3%), and sexual harassment (1.8%).

About 55% of the people requesting mediation reached agreement through such services, including 253 applicants (14.2%) who withdrew their applications after voluntarily resolving the issue before the authorities intervened. Over 90% of the cases were handled within three months.

A total of 1,911 people applied for advice and/or guidance from Prefectural Labor Bureau directors, with 1,208 cases actually receiving advice and guidance; 323 cases withdrawing their applications; and 128 cases canceling the handling of the cases. Here again, over 96% of the applications were handled within three months.

A majority of those who submitted requests for mediation, advice and guidance were workers. Of these, over 70% worked full time, over 10% worked part time, and the rest comprised temporarily dispatched workers or term contract employees.

As seen, many workers use this law to settle disputes and problems, showing that the law has been launched successfully.