McDonald's Co. (Japan) Ltd. agreed Wednesday at the Tokyo High Court to pay about ¥10 million to settle a legal battle over overtime pay with a manager at one of its outlets, the plaintiff's lawyer said.
The hamburger chain and Hiroshi Takano, 47, agreed on a deal that states his position does not correspond to that of manager at the chain and he is thus entitled to receive overtime pay from the company.
An employer does not have to pay overtime to managers, who by definition count as part of its management, according to the Labor Standards Law.
The deal also calls on McDonald's not to impose demotions, transfers or pay cuts on the plaintiff as a result of the litigation.
Takano, who manages a McDonald's outlet in Kumagaya, Saitama Prefecture, sued the company for not giving him the authority of a real manager but treating him as a "manager in name."
The Tokyo District Court in January last year ordered McDonald's to compensate him about ¥7.55 million in overtime pay.
His lawyer said the settlement money of about ¥10 million includes ¥7.55 million in compensation and overtime logged since the ruling.