By Shingo Hattori — Founder & Managing Partner, Hattori Law
Tel: +81 3 6447 5586
Even though there are various Acts regarding labor matters in Japan, Labor Standards Act is the fundamental one. Japanese Labor Standards Act has a base on Japanese Constitutions Article 27.2 “Standards for wages, hours, rest and other working conditions shall be fixed by law.” Labor Standards Act stipulates minimum standards of work conditions to protect workers from their position regarding economical viewpoints. Labor Standards Act Article 1.1 stipulates the very point as “Working conditions must be conditions meeting the needs that are to be met in order for worker to live a life worthy of a human being.”
Labor Standards Act stipulates equal treatment of workers. An employer must not use a worker’s nationality, creed, or social status as a basis for differential treatment with respect to wages, working hours, or other working conditions. This does not look unique. However, especially for foreign employers, it’s necessary to be aware of it because its working culture tends to be more diversified. And of course, there is the principle of equal wages for men and women.
Labor Standards Act is a mandatory law. This means that all employers must comply with the law even if labor contracts stipulate working conditions differently. Practically, Labor Standards Inspection Office under Ministry of Health, Labour and Welfare has an authority to regulate its compliance. MHLW has 321 Labor Standards Inspection Office all over Japan. They are very active.
Labor Standards Act has penalty clauses. It could be penalized if employers do not comply with Labor Standards Act.
It stipulates working conditions of wages, working hours, breaks, days off, annual paid leave primarily, which might be aware of for foreign employers as well.
Regarding wages, employers must pay wages more than Minimum Wages stipulated in the Minimum Wages Act. Minimum Wages are different depending on the prefectures. And it’s amended every year. For your reference, Tokyo’s one is 1,226 JPY per hour as of October 3, 2025. This is 7.83 USD (1USD=156.58JPY).
Regarding working hours, employers must not have workers work more than 40 hours per week, excluding break periods. If employers prefer to have workers work more than 40 hours per week, employers must execute “36 agreements” and pay extra wages. Here is a basic.
Regarding breaks, the Act stipulates “An employer must provide a worker with at least 45 minutes of break periods during working hours if working hours exceed 6 hours, and at least one hour of break periods during working hours if working hours exceed 8 hours.”
The Act stipulates minimum conditions of details of days off and annual paid leave as well.
Labor Standards Inspection Office has an authority to regulate employers regarding Labor Standards Act. There are many offices. Just in Tokyo, there are 19 offices. If the regulatory authority steps in, employers need to be very careful to avoid any penalty.
As you now as a global employer, labor regulations are different in each country. Please kindly be careful to deal with it. Especially if you are in crisis management phase, you need to check all regulations, possible claims from workers, and treat those claims in accordance with all regulations.
Shingo Hattori
Founder & Managing Partner, Hattori Law +81 3 6447 5586
Daini Tokyo Bar Association:
Disclaimer:This article provides general information as of the time of drafting only and does not constitute legal advice. Specific advice requires review of transaction documents and facts.
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