The Tokyo Labor Bureau has advised Nomura Real Estate Development Co. to take corrective measures against its abuse of a discretionary work system that forced hundreds of employees to work unpaid overtime, the bureau and other sources said Tuesday.
The advisory was issued Monday, and special instructions were given to President Seiichi Miyajima, the sources said.
In response, Nomura will scrap the system in April and take remedial steps for the unpaid overtime, company officials said.
According to the bureau and the realtor, several hundred employees at the company’s head office in Tokyo and four branch offices, including those in Osaka and Fukuoka, were affected by the inappropriate labor management practice.
The workers were mainly engaged in sales activities under the work system, which is supposed to be applied to those doing planning and research jobs. This led to illegally long work hours and unpaid overtime. Nomura has been conducting the practice since 2005.
“We will take the matter seriously and make efforts for proper labor management,” Miyajima said in a statement.
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