Clifford Chance

Japan: Amendments to the Workers Dispatch Act [Japanese version]

21 December 2012

Amendments to the "Act for Securing the Proper Operation of Worker Dispatching Undertakings and Improved Working Conditions for Dispatched Workers" (Law No. 88 of 5 July 1985 as amended, the "Act") (the "Amendment") were approved at the plenary session of the House of Councillors on 28 March 2012.

Although the Act has been amended several times since its enactment, the Amendment was adopted following a thorough review of the workers dispatch legal framework prompted by the adverse effects of past deregulation and in particular the excessive use of worker dispatch by the day, fictitious service-providing contracts and the emergence of the social issue described as "Haken-Giri" (termination at will of the contracts of dispatched workers) after the global financial crisis in 2008.

The Amendment puts the emphasis on protection of dispatched workers as the main purpose of the Act and its name will be changed to the "Act for Securing the Proper Operation of Worker Dispatching Undertakings and Ensuring the Protection, etc. of Dispatched Workers". 

This briefing discusses key points and their practical implications.

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