I n recent years, labor disputes involving individual workers, particularly with regard to layoffs and wages, have increased rapidly in Japan. In the background are sweeping changes in the employment situation, as illustrated by sharp rises in the number of temporary and part-time workers. Current labor-related legislation is proving inadequate in dealing with these problems.
That is why the Health, Labor and Welfare Ministry is considering new legislation to regulate labor contracts -- from hiring to separation. It is a timely and necessary move. The proposed "labor contract law" is designed not only to settle promptly individual labor disputes, such as those involving layoffs and wages, but also to prevent their recurrence.
Under the existing Labor Standards Law, employers are prohibited from firing workers in certain cases. The new law would permit such layoffs with cash compensation. The ministry's study group, which prepared an interim report in April, plans to publish a final report in September. The ministry then will draft a bill based on the panel's recommendations.