We’ve outlined Japan statutory updates for 2024
Effective April 1, 2024
Amendments to the Labor Standards Act
The amendments to the Labor Standards Act that were ratified last March 2023 will now take effect starting April 1 of this year. This amendment specifically concerns the notification of the working conditions for employees, allowing for greater transparency. The scope of this change includes:
Transparent communication regarding workplace and job function changes
Employers are now required to clearly specify any changes regarding the employment site and business scope to their workers. This includes both immediate adjustments and other future changes.
Explanation on the limitations of renewing fixed-term contracts
It is the employer’s responsibility to disclose the renewal restrictions of fixed-term contracts, highlighting either the permissible number of renewals or the total allowable contract duration.
Clear stipulation of conversion rights
Workers under fixed-term agreements should be afforded the opportunity to request a shift to indefinite-term contracts, with employers outlining the necessary criteria and procedures for such a transition.
Specifications following the transition to indefinite-term contracts
Upon a worker’s successful conversion to an indefinite-term contract, employers must detail the conditions of employment that will subsequently apply.
Source: Lexology
Effective March 29, 2024
Digital Nomad Visa
Digital Nomad Visa is now open for applications, following an earlier announcement this year about the program. The visa allows eligible foreign nationals (and family members) to reside in Japan while working remotely for their home employer for a non-renewable period of up to six months as long as they utilise information and communication technology in their position.
Expansion of Specified Skilled Worker Program
The Japanese government resolved to further expand the coverage of the Specified Skilled Worker program by expanding the program to four additional industries (for a new total of 16 industries) where there are strong demands for foreign employees due to acute labor shortages. The new sectors included are: automotive transportation, railroads, forestry and timber.
Source: Fragomen
Effective March 1, 2024
Health and Nursing Care Insurance Reduced
The Japanese government has announced anticipated changes to the social contribution rates, which will impact both employers and employees. The update is aimed at improving the social welfare system in Japan and enhancing the country’s economic growth.
Here are some key details:
- Health Insurance (Employer and Employee) from 5.0% to 4.99%
- Nursing Care Insurance (Employer and Employee) (applicable only for age 40–64) from 0.91% rate to 0.80%
Please find the updated social rates and tax table below:
Featured photo by Ryo Yoshitake on Unsplash
