The Rules for Explicitly Stating Work Conditions (Employment Contracts) will Change from April 2024

TargetTiming of ClarificationNew Clarifications to be Added
All WorkersAt the time of conclusion of the labor contract and at the time of renewal of fixed-term labor contract1. Scope of changes in place of employment and duties
Fixed-term Contract Workers
At the time of conclusion and renewal of fixed-term labor contract
2. Existence and details regarding the renewal limits(Total contract period or maximum number of renewals)
+ If the maximum renewal period is to be newly established or shortened, the reason for this should be explained in advance.
At the time of renewal of a contract for which the right to apply for indefinite conversion occurs based on the indefinite conversion rule*3. Opportunity to apply for indefinite change of working conditions after changing to indefinite labor contract
+ In determining the working conditions after the indefinite change of employment, the company shall make efforts to explain matters that take into consideration the balance with other regular employees

* When a fixed-term labor contract with the same employer exceeds five years in total, a worker can apply to be converted to a labor contract without a fixed term (indefinite labor contract) upon request of the worker.

1. Scope of changes in place of employment and duties  

Notification of working conditions for employment (Excerpt)

Place of Employment( Immediately after Hiring )             ( Scope of Changes )
Description of Responsibilities( Immediately after Hiring )             ( Scope of Changes )
[In the case of persons subject to special provisions under the Act on Special Measures for Fixed-term Employment (Highly Skilled Professionals)]・Specified fixed-term business ( Start Date:       Finish Date: )

* The scope of the change must be clearly indicated for workers whose contracts are to be signed or renewed on or after April 1, 2024. 

It is preferable to clearly indicate the scope of the change even before that date.

<Example>

1) When there are no restrictions on the place of employment or the nature of work 

Place of Employment(Immediately after hiring) ●●  Business office (Scope of change) Business office specified by the company
Description of Responsibilities(Immediately after hiring)     ●●   Work related to (Scope of change) Work specified by the company

2) When there is a restriction on the place of employment or part of the nature of work

Place of Employment(Immediately after hiring) Head Office (Scope of change) Head Office and ●● Branch Office(s) 
Description of Responsibilities(Immediately after hiring) Payroll Processing Services (Scope of changes) Payroll and social insurance procedures

3) When a change in the place of employment or the nature of work is not expected (completely limited)

Place of Employment(Immediately after hiring) Head Office (Scope of change) Head Office 
Description of Responsibilities(Immediately after hiring) Payroll Processing Services (Scope of change) Payroll processing services

4) When there is a temporary limitation

Place of Employment(Immediately after hiring)   ●●  Sales office (Scope of change) Sales office specified by the company
Description of Responsibilities(Immediately after hiring)  Payroll Calculation  (Scope of change) Work specified by the company

2. Availability and details of renewal upper limit Working condition notice. 

Notification of working conditions for employment (Excerpt)

3. Availability of Renewal Limit (Yes/No (Up to ● renewals / Up to ● years total contract term )).

* Applicable to fixed-term contract workers

* Examples of explicit renewal limits: “The contract period is limited to a total of 4 years”, ” The contract may be renewed up to 3 times”, etc.

* If you intend to establish or shorten the renewal limit, the reason for the establishment of the upper limit or shortening must be explained in advance (the basic method is to issue a document and explain it to each fixed-term contract worker through an interview,  but it is not limited to any specific method). )

< Sample > Explanation of Reasons for Shortening the Upper Limit of Renewal

We have decided to shorten the maximum renewal period for fixed-term employment contracts between you and our company.
The project that you are engaged in, was originally planned to take place over a period of 10 years. However, unlike the original plan, we have decided to terminate the project in ●year●month.We regret to inform you that the fixed-term employment contract will be renewed until ●●●.We appreciate your understanding.

3. Opportunity to Apply for Indefinite Conversion  

Notice of Renewal Conditions (Excerpt)

* In the case of concluding a fixed-term labor contract with an aggregate contract period exceeding 5 years between the same company as stipulated in the Labor Contract ActIf an application is made to the Company for the conclusion of a labor contract with an indefinite term (indefinite-term labor contract) during the period of this contract, the employment may be converted to an indefinite-term labor contract from the day following the last day of the contract period (year, month, and day). In this case, whether or not there is any change in the working conditions from this contract (No  ●   Yes  (as shown in the attachment)) 

* Applicable to fixed-term contract workers

* The right to apply for indefinite-term conversion is clearly indicated at the time of each contract renewal.

* Consultation system of “Matters related to the improvement of employment management for workers with fixed-term contracts” is applicable.

< Sample > Explanation of Matters Considered for Balance

Based on the intent of the provisions of Article 3, Paragraph 2 of the Labor Contract Act, we will explain the working conditions after the indefinite conversion, taking into account the balance according to the actual conditions of employment.
The reason for the difference in treatment between a contract employee and a permanent employee is that full-time employees perform tasks with a high level of difficulty and involve responsibilities for them. On the other hand, in the case of indefinite-term conversion employees, the tasks performed are relatively light in nature, and there is no responsibility for ●●.
Hence, the difference in treatment is in consideration of the points mentioned above.

Timing and Examples of Explicit Notification Regarding Permanent Conversion

<Example: A fixed-term labor contract with a contract period of one year and no upper renewal limit 

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