Red tape and costly commission fees involved in applying for state subsidies have led some companies in Japan hit by the coronavirus pandemic to give up on seeking support to retain their employees.
Businesses say they cannot receive the much-needed funds because they need to hire licensed social insurance labor consultants to fill in the plethora of paperwork required, and that could cost more than the amount they would receive.
As of late May, labor bureaus across Japan had received around 400,000 inquiries about the subsidy program, which shoulders part of the leave allowance companies pay to employees to retain them despite the economic slowdown.