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Japan

Working Hours and Overtime Regulations

Understand the laws governing work hours and overtime in Japan

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Standard working hours

Japanese labor law outlines standard working hours to establish a balance between work and personal life for employees. These regulations are outlined in the Labor Standards Act (Act No. 36 of 1947).

The Act establishes a maximum of eight hours per day and 40 hours per week for a standard work schedule. This translates to a maximum of 160 hours per month. It's important to note that this is considered a "fixed-time work schedule".

The Act also allows for alternative work arrangements like "annual modified working hours" and "monthly modified working hours." These systems average working hours over a set period, allowing for fluctuations within a week or month but maintaining a 40-hour average.

It's important to remember that these regulations aim to provide a framework, and cultural norms can influence actual working practices in Japan.

Overtime

Overtime work is a common aspect of Japanese work culture, and it is regulated by law to ensure fair compensation and prevent employee overwork.

According to the Labor Standards Act (Act No. 36 of 1947), overtime applies when work hours exceed the standard workweek. This standard is set at eight hours per day and 40 hours per week.

The Act mandates minimum overtime compensation rates. These rates vary depending on the duration and time of day worked:

  • For exceeding the 40-hour workweek, employees are entitled to a minimum 25% increase in their regular wage for each overtime hour.
  • Work performed between 10 pm and 5 am qualifies for an even higher minimum increase of 35% on top of the regular wage.

These are minimum requirements. Companies can offer higher compensation for overtime work if they choose.

The Act also sets limitations to protect employee well-being:

  • Under normal circumstances, overtime is capped at 45 hours per month.
  • The maximum annual overtime allowed is 360 hours.

These caps can be extended through a special agreement known as the "Article 36 Agreement". This agreement, stipulated in Article 36 of the Labor Standards Act, requires negotiation between the employer and employee (or their union) and must be filed with the Labor Standards Inspection Office.

In some cases, with employee consent outlined in a labor-management agreement, companies can offer paid leave instead of the increased wages for the 25% overtime portion (over 40 hours but under 60 hours per month).

These are legal guidelines. While they ensure fair compensation, work culture in Japan may influence actual overtime practices.

Rest periods and breaks

Japanese labor law guarantees rest periods and breaks for workers to ensure their well-being and prevent fatigue. The specific entitlements are outlined in the Labor Standards Act (Act No. 36 of 1947).

Mandatory Rest Periods

The Act mandates rest periods during working hours based on the total daily work time:

  • For a workday exceeding six hours: Workers are entitled to a minimum of 45 minutes of rest.
  • For a workday exceeding eight hours: The minimum rest period increases to one uninterrupted hour.

These rest periods are considered paid breaks and are not deducted from an employee's working hours.

Discretion on Break Timing

The Act doesn't dictate the specific timing of rest periods within the workday. However, it emphasizes that the breaks should be structured to allow for proper rest and recuperation. This typically involves giving employees control over when they take their breaks, as long as the minimum duration is met.

Exceptions to Break Requirements

There are limited exceptions to the mandatory rest period rules:

  • Specific Industries: Certain industries, with government approval, can have alternative break arrangements. These exceptions may involve shorter, more frequent breaks throughout the workday.
  • Shortened Workdays: For workdays less than six hours, rest periods are not mandatory.

Cultural Considerations

While the law guarantees minimum rest periods, the concept of taking breaks can be culturally discouraged in some Japanese workplaces. Employees might feel pressure to work through breaks to meet deadlines or demonstrate commitment. However, promoting the importance of utilizing breaks for improved productivity and well-being is becoming increasingly recognized by companies in Japan.

Night shift and weekend regulations

Japanese labor law recognizes the demanding nature of night shifts and weekend work. The specific regulations outlined in the Labor Standards Act (Act No. 36 of 1947) are designed to safeguard worker well-being during these times.

Night shift work is defined as hours worked between 10 pm and 5 am. Key regulations concerning night shifts include:

  • Overtime Compensation Boost: Work performed during these hours qualifies for a minimum 35% increase in regular wages, on top of the standard overtime rate. This offers an incentive for night work and acknowledges the potential for increased strain.
  • Health and Safety Measures: Companies are obligated to prioritize worker well-being during night shifts. This may involve measures like providing proper lighting, temperature control, and breaks at appropriate intervals to combat fatigue.

While not mandated by law, offering health checkups and night shift allowances are common practices by companies in Japan.

The Act doesn't explicitly restrict weekend work. However, it emphasizes the importance of weekly rest periods for employee well-being. The legal framework entails:

  • Guaranteed Days Off: Employees are entitled to at least one designated rest day per week. This rest day doesn't have to fall on a Saturday or Sunday but must provide a 24-hour period of uninterrupted rest.
  • Premium Pay for Work on Designated Rest Days: Work performed on designated rest days requires a minimum premium pay increase of 50% on top of the regular wage. This discourages unnecessary scheduling on these days.

Employers and employees can establish agreements on alternative work schedules that deviate from the standard workweek, as long as they comply with the minimum rest day requirement.

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