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Working Hours and Overtime in Japan

What are the standard working hours in Japan?

In Japan, the statutory working week consists of 40 hours, typically structured as 8 hours per day, excluding breaks.

Is overtime governed by law in Japan? If so, what are the specifics outlined by law?

Overtime in Japan is governed by specific legal regulations. Key aspects include:

  • Overtime is considered any work exceeding 40 hours per week or 8 hours per day.
  • Generally, overtime is limited to 45 hours per month and 360 hours per year.
  • Employers may require overtime only if a written agreement signed by both the employer and employee is submitted to a Labor Standards Inspection Office.
  • When unexpected overtime is necessary, employers should seek approval from the Labor Standards Office in advance or notify the office once the overtime begins if prior approval is not possible.

Overtime pay rates, as stipulated by law, are as follows:

  • 25% or more for up to 60 overtime hours in a month.
  • 50% or more for hours exceeding 60 in a month.
  • 35% or more for work on days off.
  • For work performed late at night (between 10 p.m. and 5 a.m.), employees must be paid at a rate of no less than 25% above the normal wage per working hour.

It is important to note that these regulations do not apply to employees in managerial or supervisory roles, who are exempt from overtime pay under Article 41 of the Labor Standards Act. Holding the title of "manager" alone is not sufficient to qualify for this exemption.

How is the time off in lieu payment calculated in Japan?

When Pebl grants a supported employee time off in lieu in Japan, the payment calculation includes the premium portion of the allowance. This allowance is for work carried out either on a statutory holiday or as overtime.

What are the eligibility rules for time off in lieu in Japan?

If a supported employee in Japan has worked on a holiday, Pebl may grant that employee time off in lieu.

How many days before the actual start date should the employment agreement be signed for payroll purposes in Japan?

For payroll purposes in Japan, the employment agreement should be signed 14 business days before the actual start date.

Can employment agreements be backdated in Japan?

In Japan, employment agreements cannot be backdated.

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