The Ministry of Health, Labour and Welfare decides on a Government-Ministerial ordinance on the Revised Labor Standards Law

The Ministry of Health, Labour and Welfare decided on a revised draft of the Government-Ministerial ordinance for the Revised Labour Standards Law that is planned to go into effect on January 1, 2004. (For the main aims and contents of the Revised Labour Standards Law promulgated in July 2003, see the Special Issue section, JLF Vol. 47.)

Regarding terminable employment contracts whose maximum term could be extended from one year to three years, the Government-Ministerial ordinance determined the occupational categories to which the preferential measure of the maximum extension of 5 years would be applied (professionals and experts with exceptionally high levels of knowledge and skills). These included 12 occupational types, including lawyers, certified public accountants, physicians, dentists, veterinarians, First-Class architects (certified by the Minister of Land, Infrastructure, and Transport), tax accountants, and others.

If, moreover, employers decide not to renew the contracts of terminable workers who have worked with them for one year or longer, the Government-Ministerial ordinance obligates the former to announce the termination of employment to the latter at least 30 days prior to the date of the termination of the contract period.

Additionally, the Government- Ministerial ordinance mandates that, in concluding a terminable employment contract, employers must clearly show whether or not the contract can be renewed after the end of the contract term, and indicate the criteria for judging whether to renew the contract or not.

As for the expansion of sites of business to which the discretionary labor system for planning/analysis and survey work applies, the Government Ministerial ordinance will eliminate the restriction stipulated under the existing law, namely, "a site of business where decisions that are important to operational management are made." Consequently, it would become possible to introduce such discretionary labor system to branch offices in addition to the head office or the head store.

Regarding the period of validity of the Labor-Management Committee resolutions under the discretionary labor system, the Government-Ministerial ordinance deleted the phrase, "one year or less" as stipulated under the existing law. However, the Ministry of Health, Labour and Welfare intends to incorporate the results of the deliberations conducted at the Diet and provide guidance to make the period of validity "three years or less."