Labour Standards Act — the foundational statute for wages, hours, and leave
The Labour Standards Act (Rōdō Kijun Hō, Act No. 49 of April 7, 1947, as amended) establishes the minimum employment standards for all workers in Japan and is the central statute governing wages, working hours, rest periods, annual paid leave, and other core working conditions. The Act applies to any person "employed at a business or office and to whom wages are paid, regardless of the type of occupation" (Article 9), covering employees in both the private and public sectors unless expressly excluded.
Scope and non-derogability. Article 1 declares that working conditions "should meet the needs of workers who live lives worthy of human beings," and Article 13 renders void any labour-contract provision that falls below LSA standards, automatically substituting the statutory minimum in its place. Employers and workers may agree to more favorable terms, but the LSA sets the floor.
Administering agency. The Ministry of Health, Labour and Welfare (MHLW, 厚生労働省) administers the LSA through its Labour Standards Bureau at the national level and 47 prefectural Labour Bureaus paired with 321 Labour Standards Inspection Offices nationwide. Labour standard inspectors have visitatorial authority to enter workplaces, examine payroll records and timekeeping, and issue correction orders or impose criminal penalties for serious violations (the LSA grants them special judicial-police powers under the Code of Criminal Procedure).
Key substantive chapters that cross-border employers will encounter include:
- Chapter II (Articles 13–16): labour-contract formation, including mandatory written disclosure of wages, working hours, and other working conditions at the time of hire (Article 15).
- Chapter III (Articles 17–31): wage-payment principles (currency, full payment, direct payment, monthly regularity; Article 24), advance-payment restrictions (Article 17), and integration with the Minimum Wages Act of 1959 for prefecture-specific wage floors (Article 28).
- Chapter IV (Articles 32–41): statutory working-time limits (40 hours per week, 8 hours per day; Article 32), rest periods (45 minutes for workdays exceeding 6 hours, 1 hour for workdays exceeding 8 hours; Article 34), weekly or 4-weekly rest days (Article 35), overtime agreements under Article 36 (the "36 Agreement"), and annual paid leave accrual and usage rights (Article 39).
- Chapter V (Articles 56–64-3): protections for minors, including a prohibition on employing children below age 15 (until March 31 following their 15th birthday; Article 56) and restrictions on night work and dangerous work for those under 18.
- Chapter VI (Articles 65–68): maternity protections, including pre-natal (6 weeks) and post-natal (8 weeks) leave (Article 65), restrictions on dismissal during maternity leave plus 30 days thereafter (Article 19), and nursing-time allowances (Article 67).
- Chapter XI (Articles 75–88): employer liability for medical treatment and compensation when a worker sustains an injury or contracts an illness "in the course of employment" (業務上, gyōmu-jō); this framework is now largely operationalized through the separate Workers' Accident Compensation Insurance Act.
Overtime and premium-pay framework (Article 36). The 40-hour week and 8-hour day are strict statutory ceilings unless the employer concludes a written labour-management agreement ("36 Agreement") with either the majority labor union at the workplace or, if none exists, a representative elected by a majority of workers, and files that agreement with the local Labour Standards Inspection Office. Even when a valid 36 Agreement is in place, monthly overtime is capped at 45 hours per month and 360 hours per year in principle; temporary "special circumstances" clauses allow extensions up to 720 hours annually, less than 100 hours in any single month (including statutory rest-day work), and an average of 80 hours per month over any 2- to 6-month period, with no more than 6 months in a year exceeding 45 hours. These caps took effect April 1, 2019 for large employers and April 1, 2020 for small and medium-sized enterprises; certain industries (construction, automobile driving, physician work) were subject to transitional grace periods extending to April 1, 2024. Overtime work triggers premium pay at 125 % of the base hourly rate; hours beyond 60 in a single month attract 150 %; statutory rest-day work commands 135 %, and night work (10 p.m.–5 a.m.) adds an additional 25 % surcharge (Article 37 and 2018 working-style-reform amendments).
Relationship to other employment statutes. The LSA is the keystone of a larger statutory framework: the Minimum Wages Act (Act No. 137 of 1959) fixes prefecture-by-prefecture wage floors revised annually (Article 28 LSA cross-references it); the Industrial Safety and Health Act (ISHA) imposes employer duties for workplace safety, hazard prevention, and health examinations; the Workers' Accident Compensation Insurance Act provides no-fault injury and illness benefits; the Labour Contract Act (Act No. 128 of 2007) governs formation, modification, and termination of individual contracts and overlays fairness principles on dismissals and fixed-term renewals; the Act on Childcare Leave, Caregiver Leave, and Other Measures extends parental leave and nursing-care leave beyond LSA maternity protections; and the Equal Employment Opportunity Act prohibits sex-based discrimination in recruitment, assignment, promotion, and termination.
Penalties. Violations of core LSA provisions—forced labor (Article 5), wage non-payment (Article 24), unlawful overtime (Article 32 / Article 36), failure to grant statutory leave (Article 39)—carry criminal sanctions: imprisonment of up to 6 months or fines of up to ¥300,000 for most wage and hour breaches, and imprisonment of up to 1 year or fines of up to ¥500,000 for forced-labor violations. Labour standard inspectors may impose administrative correction orders before resorting to criminal referral, but the statute's penal backbone gives the inspection regime significant deterrent force.
Source: Labour Standards Act (Act No. 49 of 1947, as amended) Source: Labour Standards Bureau overview, MHLW
Annual paid leave — accrual schedule, 80 % attendance threshold, and the mandatory five-day employer designation duty
Annual paid leave (年次有給休暇, nenji yūkyū kyūka) is the statutory minimum leave entitlement under Article 39 of the Labour Standards Act. Unlike many jurisdictions where leave accrues from day one, Japan conditions the initial grant on six months of continuous service and an attendance rate of at least 80 % of total working days during that period. Workers who meet both tests receive 10 working days of paid leave; the entitlement then increments annually for each additional year of continuous service, reaching a statutory ceiling of 20 days after 6.5 years of employment.
## Accrual schedule and incremental vesting
Article 39(1) grants 10 working days of paid leave to a worker who has been employed continuously for six months from the date of hire and who has reported for work on at least 80 % of the total working days. Article 39(2) provides for incremental increases: for workers who have been employed continuously for at least one and a half years, the employer must grant one additional day of annual paid leave for each additional year of continuous service beyond the initial six-month anniversary, up to a maximum of 20 working days. The full accrual table, reflected in Ministry of Health, Labour and Welfare guidance, is:
- 6 months: 10 days
- 1.5 years: 11 days
- 2.5 years: 12 days
- 3.5 years: 14 days
- 4.5 years: 16 days
- 5.5 years: 18 days
- 6.5 years and beyond: 20 days
The entitlement is statutory—employers may provide more generous accruals or grant leave from day one, but the LSA sets the floor. Any labour contract that provides less is void under Article 13, with the statutory minimum automatically substituted.
## The 80 % attendance threshold and deemed-attendance periods
Eligibility for each year's accrual is conditional on the employee having attended work on at least 80 % of working days during the relevant qualifying period. Article 39(10) treats certain absences as deemed attendance when calculating the 80 % rate: periods of absence due to work-related injury or illness, childcare leave or family-care leave under the Act on Childcare Leave and Caregiver Leave, and maternity leave under Article 65 of the LSA all count as working days for the attendance-rate calculation. An employee who falls below the 80 % threshold in a given year does not accrue new leave for the following period, although any previously accrued and unexpired leave remains available.
## Proportional granting for part-time and short-hours workers
Article 39(3) and the Ministry of Health, Labour and Welfare Ordinance for Enforcement of the Labour Standards Act (Article 24-3) establish a proportional granting regime for workers whose prescribed weekly working hours are fewer than 30 hours and whose prescribed weekly working days are fewer than 5.2 days (the statutory benchmark for "ordinary workers"). These workers receive a reduced number of annual leave days scaled to their contracted schedule; for example, a worker employed for four days per week for six months receives seven days (rather than ten), rising to 15 days (rather than 20) after 6.5 years. Workers who meet or exceed either the 30-hour-per-week threshold or the 5.2-day-per-week threshold are entitled to the full-time accrual schedule.
## The 2019 employer designation duty — mandatory five-day minimum
The April 2019 Work Style Reform amendments (Act No. 71 of 2018, amending the LSA effective April 1, 2019) added Article 39(7), which imposes an affirmative employer obligation: for every worker entitled to 10 or more days of annual paid leave in a given year, the employer must ensure that at least five days are actually taken within 12 months of the "base date" (the first day of each one-year period measured from the initial grant date or the annual anniversary). The statute offers two compliance pathways: (i) the employee voluntarily requests and takes five or more days, or (ii) the employer designates specific dates for paid leave, after hearing the employee's opinion and endeavoring to respect the employee's wishes.
In practice, most employers monitor leave usage during the year and designate dates only when an employee is on track to fall short of the five-day threshold. Half-day leave counts as 0.5 days toward the five-day minimum, but hourly leave (permitted under Article 39(4) by labour-management agreement, up to five days per year) does not count toward the mandatory five-day total.
Article 39(8) requires employers to maintain an annual paid leave management ledger (nenji yūkyū kyūka kanri-bo) recording the base date of entitlement, the number of days taken, and the dates designated by the employer; records must be kept for five years (a transitional rule currently sets the retention period at three years for smaller employers, but the five-year standard is the target).
Penalties. Employers who fail to ensure the five-day minimum face fines of up to ¥300,000 per employee under the penal provisions of the LSA (Article 120). Failure to maintain the annual leave management ledger or to include the annual-leave base date and days granted in the written statement of working conditions (required under Article 15) each triggers separate fines of up to ¥300,000.
## Carry-over and expiration
Unused annual paid leave may be carried forward for up to two years from the date of entitlement; after the two-year window, the leave expires under Article 115 of the LSA (the general statute of limitations on wage-related claims). Employers cannot shorten this carry-over period to the employee's disadvantage, though more generous policies are permitted. There is no statutory right to cash out annual leave during employment; payout is reserved for the termination scenario (resignation, dismissal, or end of a fixed-term contract), at which point all unused leave must be paid out at the employee's average wage.
## Employee right to specify timing and employer right to change timing
Article 39(5) grants employees the right to take annual paid leave at the time of their choosing; no reason or justification is required, and employers in principle cannot refuse. The sole statutory exception is the employer's right to change the timing (jiki henkou ken): if granting leave on the requested date would "impede the normal operation of the business," the employer may request an alternative date. This exception is narrowly construed—mere busyness, short staffing, or difficulty in finding a substitute do not suffice. The employer bears the burden of demonstrating that operational disruption would be objectively serious and must propose a concrete alternative date.
## Planned allocation system (Article 39(6))
Employers may designate certain days of annual paid leave in advance through a labour-management agreement with the majority union or, if none exists, a representative elected by a majority of workers (Article 39(6)). This "planned allocation" system allows coordinated shutdowns (e.g., extended summer holidays or year-end closures) or staggered group leave schedules. The critical statutory constraint is that at least five days of each employee's annual entitlement must remain available for the employee to designate freely; only days exceeding five may be subject to planned allocation. Because the 2019 employer designation duty already requires five days to be taken, most employers use planned allocation for the portion above five days (e.g., days 6 through 20), preserving flexibility for the employee to use the first five days for emergencies or personal needs.
Source: Labour Standards Act, Article 39 (Act No. 49 of 1947, as amended by Act No. 71 of 2018) Source: Ordinance for Enforcement of the Labour Standards Act, Article 24-3 (proportional granting)
Minimum wage — regional prefectural floors, industry-specific overlays, and the annual Central Minimum Wages Council revision process
Japan does not impose a single national minimum wage. Instead, the Minimum Wage Act (Act No. 137 of April 15, 1959, as last amended by Act No. 27 of 2012) establishes a dual system of regional minimum wages (地域別最低賃金, chiiki-betsu saitei chingin) and specified minimum wages (特定最低賃金, tokutei saitei chingin), with each of Japan's 47 prefectures setting its own hourly floor and a subset of prefectures layering industry-specific minimums on top of the regional rate for designated sectors. Article 28 of the Labour Standards Act cross-references the Minimum Wage Act and makes compliance mandatory; any labour contract that specifies a wage below the applicable minimum is void under Article 13 of the LSA, with the statutory floor automatically substituted.
## Regional minimum wages — the primary floor for all workers
Article 9 of the Minimum Wage Act requires that regional minimum wages be decided for each prefecture to guarantee a minimum level of wages for low-paid workers, taking into account (i) workers' cost of living, (ii) prevailing wages in the region, and (iii) the ability of ordinary enterprises to pay (Article 9(2)). The Director of each Prefectural Labour Bureau decides the regional minimum wage after consultation with the tripartite Regional Minimum Wages Council (composed of equal numbers of worker representatives, employer representatives, and public-interest members; Articles 21–22) and following public notice and an opportunity for objections (Article 11).
2025–2026 rates. The Ministry of Health, Labour and Welfare announced the revised regional minimum wages in September 2025, with most prefectures implementing the new rates between October 2025 and March 2026. The national weighted average rose to ¥1,121 per hour, representing a ¥66 increase (6.3 %) over the prior year—the largest absolute annual increase since hourly-rate reporting began in 2002. For the first time in Japan's modern wage history, all 47 prefectures exceeded the ¥1,000-per-hour threshold. The highest regional minimum wage is Tokyo at ¥1,226 per hour, followed by Kanagawa at ¥1,225; the lowest are Kochi, Miyazaki, and Okinawa, each at ¥1,023 per hour. Eight major metropolitan prefectures (Tokyo, Kanagawa, Osaka, Kyoto, Hyōgo, Saitama, Chiba, and Aichi) all exceeded ¥1,100 per hour.
Effective-date dispersion. Unlike many jurisdictions that implement wage adjustments on a single nationwide date, Japanese prefectural councils set individual effective dates. For the 2025–2026 revision cycle, effective dates ranged from October 1, 2025 (Tochigi and 19 other prefectures) to March 31, 2026 (Akita), a 181-day window. Six prefectures (Akita, Kumamoto, Oita, Miyazaki, Saga, and Iwate) imposed cross-calendar-year effective dates—delayed until January, February, or March 2026—to provide additional lead time for small businesses to adjust payroll systems and pricing. This dispersion has been controversial: while employers argue it cushions compliance costs, labour unions have pointed out that a worker in Akita subject to the March 31, 2026 effective date will receive the old wage for six months longer than a worker in Tochigi, effectively reducing the worker's annual earnings by tens of thousands of yen despite a nominally higher hourly rate in some cases.
## Specified (industry-specific) minimum wages — higher sectoral floors
Article 15 of the Minimum Wage Act permits worker or employer representatives to petition the Minister of Health, Labour and Welfare or a Prefectural Labour Bureau Director to establish, revise, or abolish specified minimum wages for a particular industry or occupation. After consultation with the relevant Minimum Wages Council, the Director may decide a specified minimum wage that applies to workers in that industry within the prefecture. Article 6 establishes that when both a regional minimum wage and a specified minimum wage apply to the same worker, the higher rate controls.
Specified minimum wages are relatively rare and tend to cluster in manufacturing and skilled trades. For example, Hiroshima Prefecture historically maintained specified minimum wages for the iron and steel industry (¥1,179 per hour for certain iron-industry jobs, effective December 31, 2025) and for electronic-parts manufacturing (¥1,110 per hour). When the Hiroshima regional minimum wage rose to ¥1,085 per hour in November 2025, the lower specified minimums became inoperative under the "higher-rate-prevails" rule, and the regional floor applied. Employers in industries subject to a specified minimum wage must pay the greater of the regional or specified rate; if the specified rate exceeds the regional floor, the specified rate is binding for that industry.
## Coverage, exclusions, and the permit system for reduced-capacity workers
The Minimum Wage Act applies to all workers as defined in Article 9 of the Labour Standards Act—any person employed at a business who receives wages—except (i) workers employed at businesses that only employ cohabiting relatives, and (ii) household employees (Article 2(i)). Part-time workers, fixed-term contract employees, and dispatched (staffing-agency) workers are all covered. Article 13 specifies that for dispatched workers, the minimum wage applicable at the client's place of business controls, not the staffing agency's location.
Special permit for workers with reduced work capacity. Article 7 establishes a discretionary permit system under which the Director of a Prefectural Labour Bureau may grant an employer permission to pay a wage below the minimum to workers who meet specific criteria: (i) workers whose mental or physical disabilities result in significantly reduced work efficiency, (ii) workers during a trial employment period (typically not exceeding a few months, and narrowly construed), (iii) workers undergoing accredited basic vocational training (Article 24(1) of the Vocational Abilities Development Promotion Act), and (iv) workers engaged in light duties or other categories specified by Ministry of Health, Labour and Welfare ordinance. The permit is individual and time-limited; employers must apply in advance and demonstrate that the worker's capacity genuinely warrants the exception. This exception does not apply to workers under age 18 or over age 65, or to workers during the first six months of employment in an industry subject to a specified minimum wage, unless the employer obtains an explicit permit for that worker.
## The annual revision process and the Central Minimum Wages Council
Minimum wages are reviewed annually. The process begins each summer when the tripartite Central Minimum Wages Council (中央最低賃金審議会, chūō saitei chingin shingi-kai)—an advisory body to the Minister of Health, Labour and Welfare composed of equal numbers of worker, employer, and public-interest members (Article 22)—deliberates on a target increase for the national weighted average. The Council evaluates three statutory factors under Article 9(2) and (3): (i) workers' cost of living (including the consumer price index and its regional variation), (ii) prevailing wages (industry wage surveys conducted under Article 28), and (iii) the ordinary ability of enterprises to pay wages (business-survey data on profitability and labour costs).
In late July or early August, the Central Council issues guidelines dividing Japan's 47 prefectures into three economic tiers (A, B, and C) and recommending a target yen-amount increase for each tier. For the 2025 revision, the Council recommended a ¥63 increase across all three categories—a departure from the historic practice of smaller increases for lower-tier prefectures—in an effort to narrow regional wage disparities and stem labour outflows from rural areas to higher-wage metropolitan zones.
Each Regional Minimum Wages Council then deliberates on the specific yen amount for its prefecture, typically adhering closely to the central guideline but occasionally exceeding it when local labour shortages or political pressure demand. For the 2025–2026 cycle, 39 of 47 prefectures exceeded the central guideline by 1 to 18 yen; Kumamoto Prefecture, buoyed by a semiconductor-industry boom, raised its minimum wage by ¥82—18 yen above the national recommendation—the largest single-prefecture increase.
After the Regional Council reaches a recommendation, the Director of the Prefectural Labour Bureau issues a public notice of the proposed minimum wage (Article 10) and allows a 15-day objection period (Article 11(4)). If objections are filed, the Council must reconsider them before the Director makes a final decision. Once decided, the new minimum wage is promulgated by official gazette and takes effect on the date specified in the decision, commonly in early October but—as the 2025–2026 cycle demonstrated—sometimes delayed to November, December, or even the following March.
## Government wage-growth targets
The Japanese government has set a medium-term policy goal of raising the national weighted-average minimum wage to ¥1,500 per hour by the late 2020s (some official statements target "during the 2020s," while labour advocates have called for achievement by 2030 at the latest). Achieving ¥1,500 from the 2025 base of ¥1,121 would require an average annual increase of approximately 6–7 % sustained over the next four to five years. This target reflects twin policy objectives: combating deflationary pressures that have gripped Japan's economy since the 1990s, and improving workers' purchasing power to stimulate domestic consumption in the face of an aging and shrinking workforce.
## Employer obligations and penalties
Article 4 of the Minimum Wage Act imposes an absolute obligation: employers must pay wages at least equal to the applicable minimum wage. Any labour contract, collective agreement, or works rule that sets wages below the minimum is void to that extent, and the statutory minimum applies by operation of law (Article 4(2)). Employers must also post or otherwise notify workers of the applicable minimum wage at a conspicuous place in the workplace at all times (Article 8).
Violations carry criminal penalties. Article 40 imposes a fine of up to ¥500,000 on employers who fail to pay the minimum wage; this penalty was increased in the 2007 amendments (Act No. 129 of 2007, effective July 1, 2008) as part of a broader effort to strengthen enforcement. Labour standard inspectors have authority under Article 32 to enter workplaces, examine payroll records, and question employers and workers; persistent or egregious violations may result in referral for criminal prosecution. In practice, Labour Standards Inspection Offices typically issue administrative correction orders before pursuing fines, but the penal provision remains a backstop.
## Calculation method for monthly or piece-rate workers
For workers paid a monthly salary, the employer must convert the monthly amount to an hourly equivalent and compare it to the applicable minimum wage. The basic formula is monthly base salary ÷ monthly contractual working hours. Payments excluded from the calculation include (i) overtime premiums, (ii) late-night and rest-day premiums, (iii) bonuses and other lump sums paid at intervals exceeding one month, (iv) family allowances, (v) commuting allowances, and (vi) certain in-kind benefits (Article 4(3) and Ministry ordinance). Only the base wage for ordinary working hours is tested against the minimum. For piece-rate or commission workers, Article 4(1)(iii) requires the employer to guarantee at least the minimum-wage equivalent for actual hours worked, calculated by dividing total piece-rate or commission earnings by actual hours; if the result falls below the minimum, the employer must pay a supplement.
Source: Minimum Wage Act (Act No. 137 of 1959, as amended by Act No. 27 of 2012) Source: Labour Standards Act, Article 28 (cross-reference to Minimum Wage Act)
Note: The previously cited link to the MHLW Labour Standards Bureau English overview (https://www.mhlw.go.jp/english/policy/employ-labour/labour-standards/dl/labour_standards.pdf) is no longer working and no equivalent official English PDF was located as of the current review. The citation is therefore omitted pending reconfirmation or replacement by an official URL.
Statutory sick leave — absence of paid sick leave requirement and interaction with work-related injury/illness coverage
Unlike many Western jurisdictions, Japanese law does not establish a general right to paid sick leave for employees who are absent from work due to ordinary (non–work-related) illness or injury. The Labour Standards Act (LSA, Act No. 49 of 1947) does not contain any provision requiring employers to grant or pay for sick leave beyond accrued annual paid leave (Article 39). Instead, employers may offer paid or unpaid sick leave purely as a matter of contract, company work rules (shūgyō kisoku), or collective agreement, and it is common for Japanese employers to require employees to exhaust their annual paid leave entitlement before granting additional sick leave.
Legal position:
- Article 39 of the LSA requires only annual paid leave; there is no separate statutory sick leave for non-work-related illness.
- Article 20 of the LSA prohibits dismissal of a worker during absence for recuperation from a work-related injury or illness within a certain time frame but does not mandate paid sick leave for ordinary illness. Dismissal protection is thus much stronger for illness/injury sustained in the course of employment, not general sickness.
Work-related injury or illness:
- For injuries/illnesses arising in the course of employment (gyōmu-jō), Japanese law requires employers to secure compulsory coverage for all employees under the Workers' Accident Compensation Insurance Act (Rōsai Hoken Hō, Act No. 50 of 1947). In such cases, daily benefits (shōbyō teate) are payable to eligible employees after a waiting period, but this regime does not cover non–work-related illness. (See LSA Articles 75–81 and Workers' Accident Compensation Insurance Act, Articles 12–18.)
Customary practices:
- Many large employers offer additional paid or unpaid sick leave as a benefit, but this is not required by law and is not universal.
Summary: Foreign employers should recognize that in Japan, statutory paid sick leave is not mandated; coverage is through annual leave unless the employment contract or company rules provide more generous terms. Protection and benefits for work-related illness/injury are governed by separate statutes and insurance.
Source: Labour Standards Act (Act No. 49 of 1947, as amended) Source: Workers' Accident Compensation Insurance Act (Act No. 50 of 1947)
Maternity leave — duration, employer obligations, wage replacement, and dismissal prohibition under Labour Standards Act Articles 65 and 19
Statutory maternity leave in Japan is set by the Labour Standards Act (LSA), primarily Articles 65 and 19, creating strict, uniform guarantees for eligible employees across all sectors.
Pre-natal leave (産前休業, sanzen kyūgyō): Under Article 65(1) LSA, a pregnant employee may request maternity leave starting six weeks before the expected date of childbirth (or fourteen weeks for multiple pregnancies). The employer is obligated by law to grant such leave upon request—no employer discretion applies, and there is no requirement for a medical certificate for single pregnancies.
Post-natal leave (産後休業, sango kyūgyō): Article 65(2) provides an automatic eight-week leave following childbirth. For eight weeks after the date of birth, the employer must not allow the employee to work in any capacity. The sole exception is that after six weeks, if the employee requests to return and a physician certifies she is able, the employer may allow a return to work. Otherwise, a strict no-work prohibition applies through the full eight weeks.
Remuneration and wage replacement: The LSA does not require employers to pay wages during statutory maternity leave. Instead, most employees receive a maternity allowance from their health insurance scheme (Shussan Teatekin, 出産手当金) under the National Health Insurance Act or the Employees’ Health Insurance Act. Article 65 is silent on payment; the leave is unpaid by statute, and wage replacement operates purely through social insurance, not the employer.
Dismissal prohibition (Article 19): Article 19 of the LSA prohibits dismissal of an employee "during a period of absence from work for medical treatment with respect to… maternity leave" under Article 65, and for thirty days thereafter. Any attempt to dismiss for any reason during this period is void unless the employer first obtains approval from the Labour Standards Inspection Office. This is an absolute legal shield, regardless of the justification stated by the employer. Article 65 does not itself address dismissal; the protection is provided by Article 19.
Summary for employers:
- Grant six weeks (or fourteen, for multiples) pre-natal leave on request.
- Prohibit all work for eight weeks post-partum, unless a certified return is requested after six weeks.
- Do not pay wages unless contractually obligated; wage replacement is provided through health insurance, not statutory employer liability.
- Do not attempt to dismiss (or issue notice of dismissal) from the start of maternity leave to thirty days after its conclusion without formal Inspector approval.
Source: Labour Standards Act, Articles 65 and 19 (Act No. 49 of 1947, as amended) Source: Ministry of Health, Labour and Welfare — maternity protection summary
Menstrual leave — employer obligation under Labour Standards Act Article 68
Japan uniquely provides an express statutory right to menstrual leave under Article 68 of the Labour Standards Act (LSA). If a woman requests leave because work during her menstrual period would be particularly difficult, the employer must grant the absence; this entitlement is commonly referred to as "seiri kyūka" (生理休暇).
Legal entitlement and scope. Article 68 states: "When a woman for whom work during menstrual periods would be especially difficult has requested leave, the employer shall not have her work on those days." This is a unilateral right: the employee is not required to provide a medical certificate or further justification—her statement alone suffices. The leave may be taken in full-day or partial-day increments as needed. There is no statutory limit on the number of menstrual leave days per month or year, though the request must relate to days on which work would be particularly difficult due to menstruation.
Remuneration. The LSA does not require employers to pay wages for days or hours taken as menstrual leave. Payment is discretionary: many Japanese employers provide unpaid menstrual leave, but some may pay as a matter of company policy or collective bargaining agreement. Where paid, it is by contractual or customary arrangement, not statutory obligation.
Prohibition on adverse treatment. Employers are prohibited from dismissing or otherwise disadvantaging an employee for exercising her right to menstrual leave, pursuant to wider anti-retaliation principles enshrined in LSA Article 104 and the Equal Employment Opportunity Act. Any dismissal or disciplinary action directly resulting from use of menstrual leave would be an unlawful labor practice, subject to administrative correction and possible penalty.
Administrative and HR practice. Employers may request employees notify the company in accordance with reasonable internal procedures for reporting absence (e.g., advance notice if foreseeable), but practices that unduly burden or discourage use of menstrual leave—such as intrusive questions or mandatory medical review—may constitute unlawful indirect discrimination under the Equal Employment Opportunity Act and related MHLW guidance.
Summary for practitioners: Grant menstrual leave on request with no documentation required. Payment is not statutorily required. Do not discipline or retaliate against employees for taking this leave. HR policies should reflect the LSA standard, and internal objections or disputes should be directed to the local Labour Standards Inspection Office.
Source: Labour Standards Act, Article 68 (Act No. 49 of 1947, as amended) Source: MHLW FAQ and administrative guidance, "Seiri kyūka (menstrual leave)"
Child-nursing leave (‘子の看護等休暇’): entitlement, scope and recent expansion (effective April 1, 2025)
Japan’s Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (育児・介護休業法, Law No. 76 of 1991) entitles employees with a child not yet in elementary school to take short-term leave to care for that child’s illness or injury. Known in statute as “child-nursing leave” (子の看護休暇, ko no kango kyūka), this right is separate from long-form parental or maternity leave and is administered independently of the Labour Standards Act annual paid-leave regime.
Entitlement and Scope.
- As of April 1, 2021 amendment, each eligible employee is entitled to at least five days of child-nursing leave per fiscal year per child, or ten days if the employee has two or more eligible children. Part-day increments are allowed (and, since 2021, hourly leave is permitted if the employer adopts such a system).
- This leave covers not only absence for a child’s illness or injury, but also medical appointments (including vaccinations and health checkups), a recent statutory expansion intended to support practical childcare needs.
- Effective April 1, 2025, coverage will extend further to include absences required for “infectious disease prevention measures” (such as school or class closures, government-mandated suspension of attendance due to outbreaks, and related events), in response to legislative lessons from the COVID-19 pandemic (Law No. 76/1991, Art. 16-2 as amended by Act No. 28 of 2023).
Compensation, Documentation, and Prohibited Treatment.
- There is no statutory obligation for this leave to be paid (Art. 16-4). However, employers must not disadvantage, refuse, or retaliate against an employee for requesting or taking child-nursing leave (Arts. 10, 16-4). Many large employers pay this leave, but it remains discretionary unless provided for in collective agreement or internal rules.
- Employers may require employees to produce documentation justifying the need for leave (e.g., a doctor’s note, notice of school closure, or similar), but the burden must remain reasonable (Art. 16-3, cabinet/ministerial guidance).
Practical Outline for Employers:
- Grant at least 5 days/year/child, or 10 for multiple children.
- Allow use in hours or part-days if requested and administratively feasible.
- Leave may be unpaid unless the employer opts otherwise, but retaliatory treatment is strictly prohibited.
- Scope expands in April 2025 to cover epidemic-control absences.
Parental leave (育児休業, ikuji kyūgyō): eligibility, entitlement duration, wage replacement, and job protection under Law No. 76 of 1991
Japan's parental leave regime (育児休業, ikuji kyūgyō) is governed by the Act on Childcare Leave, Caregiver Leave, and Other Measures for Workers Caring for Children or Family Members (Law No. 76 of 1991, as amended), and is implemented through annual Ministry of Health, Labour and Welfare (MHLW) guidance. Parental leave is a gender-neutral, statutory right for eligible parents following childbirth or adoption, ensuring job protection and wage replacement through public insurance.
Eligibility and Exclusions:
- Articles 2 and 5 of Law No. 76/1991 grant eligibility to regular employees who have at least one year of continuous service and whose contract will not expire before the child turns one. Fixed-term employees qualify if their contract covers at least until the child’s 18-month birthday. Certain categories (e.g., day laborers, positions defined in Article 6) are excluded.
- MHLW guidance addresses edge cases (e.g., dispatched/agency workers or company officers), and practitioners must consult up-to-date legal and FAQ material for specific worker statuses.
Entitlement Duration, Extensions, and Special Leave:
- Standard leave is available through the child’s first birthday (Art. 5). If the child cannot enter nursery care or for special hardship, this period may be extended to 18 months or, rarely, 2 years (Art. 9).
- "Postnatal paternity leave" (Art. 4-2, added by the April 2022 reform) permits fathers to take up to 4 weeks of leave within 8 weeks post-birth, which can be split, and is additive to main parental leave.
Wage Replacement:
- Employers are not required to pay wages during statutory parental leave. Instead, employees meeting Employment Insurance eligibility (participation/contribution) receive a public allowance (育児休業給付金): for the first 180 days, 67% of pre-leave wages; from day 181, 50% (Employment Insurance Act Art. 61-6). Annual caps adjust via MHLW decree.
- Material change (April 2025–2026): Effective April 1, 2025, a new “birth-period parental leave support benefit” (出生後休業支援給付金) is introduced: when both parents take at least 14 days of leave within the child's first 8 weeks, both may receive an additional benefit of 13% (totaling up to 80% wage replacement for up to 28 days). This is designed as a financial incentive for dual-parent leave uptake, administered via Employment Insurance. (MHLW April 2025 guidance; Law No. 76/1991 as amended by Law No. 28 of 2023.) Special rules apply if only one parent is eligible or in unique cases; check annual MHLW guidance for precise figures and eligibility.
Job Protection:
- Article 10 forbids dismissal, demotion, non-renewal, or disadvantage due to use of parental leave, with the employer obligated to return the worker to the original or equivalent position. Exceptions are strictly limited by law/Cabinet Order. Violations are legally void.
Procedural Requirements:
- Employees must provide written notice at least one month before leave (Art. 6-2). Employer refusal is rare and limited to statutory grounds (Art. 15). Retaliation or discouragement is prohibited.
Summary and Compliance Notes:
- Practitioners must check the latest MHLW publications for wage benefit rates and policy changes. The new birth-period addition (April 2025) represents a significant elevation in dual-parent benefit.
What changed (April 2025):
- Introduced a new 13% additional wage replacement (up to 80%) for dual-parent concurrent leave in the early post-birth period (up to 28 days within 8 weeks). This benefit is to drive uptake of leave by both parents and augments prior wage replacement structure.
Source: Act on Childcare Leave, Caregiver Leave, and Other Measures (Law No. 76 of 1991, as amended, incl. 2023 update) Source: MHLW—parental leave (育児休業等, official guidance) Source: Employment Insurance Act, Art. 61-6 (parental leave allowance) Source: MHLW April 2025 Post-Birth Leave Support Benefit (Japanese)
Public holidays (国民の祝日): National Holiday Law, and employer obligations for paid leave or alternative days off
Japan designates certain dates as official public holidays (国民の祝日, kokumin no shukujitsu) under the National Holiday Law (Law No. 178 of 1948, most recently amended by Act No. 44 of 2020), which specifies 16–17 national holidays each calendar year. These range from New Year's Day (January 1) to Emperor's Birthday (February 23) to Mountain Day (August 11), with minor adjustments in some years when holidays fall on Sundays (generating a "compensatory holiday" on the following Monday under Article 3(3)). The Ministry of Internal Affairs and Communications publishes the definitive holiday schedule by Cabinet Order (“政令で定める日”).
Statutory coverage and employer duty
The National Holiday Law does not itself require private employers to grant paid leave or suspend business on public holidays. Unlike many Western jurisdictions, there is no blanket statutory obligation for private-sector employers to treat holidays as paid non-working days. Most companies observe all or most national holidays as paid leave in their work rules (就業規則, shūgyō kisoku) because it is a market and cultural norm, but the act does not make this compulsory. Employers may require employees to work on holidays, subject to their contract, collective agreement, or internal rules. Compensation for holiday work is regulated by the Labour Standards Act (LSA): work performed on a statutory rest day (typically Sunday) or a designated holiday in the employer’s work calendar may trigger premium pay obligations (Article 35 LSA), but the mere fact a day is a national holiday does not automatically entitle employees to premium pay.
Public holiday list and mechanics
The law recognizes major holidays such as:
- New Year's Day (January 1)
- Coming of Age Day (second Monday in January)
- National Foundation Day (February 11)
- Vernal Equinox Day (variable, around March 20)
- Showa Day (April 29)
- Constitution Memorial Day (May 3)
- Greenery Day (May 4)
- Children's Day (May 5)
- Marine Day (third Monday in July)
- Mountain Day (August 11)
- Respect for the Aged Day (third Monday in September)
- Autumnal Equinox Day (variable, around September 23)
- Sports Day (second Monday in October)
- Culture Day (November 3)
- Labor Thanksgiving Day (November 23)
- Emperor’s Birthday (February 23)
If a public holiday falls on a Sunday, the following working day becomes a substitute (compensatory) holiday (Article 3(3)). The list is subject to change by Cabinet Order. The Ministry of Internal Affairs and Communications publishes the official calendar annually; for 2025–2026, see the currently operative PDF schedule.
Practical and market norms
Most full-time Japanese employees receive paid leave on public holidays as a matter of company policy, collective agreement, or customary practice. Some sectors—especially continuous-process industries or services—may operate on holidays and grant alternative paid leave or additional allowance. Employers should clearly specify their holiday policy in the employment contract or company work rules and must ensure compliance with LSA obligations for overtime and rest-day premium pay when applicable.
There are no statutory public holiday entitlements for part-time or temporary workers unless stipulated in their contract or if they are treated as ordinary employees under company rules.
Summary for practitioners:
- No statutory duty to close or grant paid leave on public holidays, but most employers do.
- Employer’s obligations stem from their own work rules, contract, or collective agreement, not the public holiday statute.
- Work on holidays is not automatically entitled to extra pay unless it triggers an LSA rest-day or overtime obligation.
- Always specify holiday/leave arrangements clearly in company documents and contracts, and consult the annually published Cabinet Order for current-year public holidays.
Source: National Holiday Law (Law No. 178 of 1948, as amended) Source: 2025–2026 National holiday calendar, Ministry of Internal Affairs and Communications
Family-care leave (介護休業, kaigo kyūgyō): statutory entitlement, duration, and wage replacement under Law No. 76 of 1991
Japan’s family-care leave (介護休業, kaigo kyūgyō) is governed by the Act on Childcare Leave, Caregiver Leave, and Other Measures for Workers Caring for Children or Family Members (Law No. 76 of 1991, as amended). This regime provides a defined right to employees to take government-protected leave from work in order to care for certain family members requiring continuous nursing due to serious illness, injury, or disability.
Eligibility and exclusions (Articles 2, 11):
- Employees with at least one year of continuous service are eligible if their contract will not expire within 93 days from the start of leave. Exclusions include (i) day laborers or temporary workers, (ii) short-term contracts set to expire within the leave period, and (iii) certain categories stipulated by Cabinet Order. (Article 11.)
- Fixed-term and part-time workers qualify if their contracts are expected to last through the care period and other statutory criteria are met (Article 11(1)).
Covered family members and care events (Article 2):
- Statutory coverage extends to care for a spouse (including common-law), child, parent, grandparent, sibling, or other dependent living with the employee. "Requiring care" is separately defined in Cabinet Order as those likely to need at least two weeks of constant nursing due to mental or physical impairment.
Leave entitlement and duration (Article 11, Article 12):
- Employees may take up to 93 days of leave per eligible family member, per care event. This may be split into up to 3 segments per care event (Article 11(3)). If a new or continuing care need arises, new entitlement may accrue, capped at a total of 93 days per individual.
Procedures and job protection (Articles 12, 13):
- Employees must provide written notice before commencement of leave—the statute does not mandate a specific notice period but Cabinet Order and MHLW practice set a two-week standard (Article 12). Employers are obligated to reinstate the employee to their original or equivalent position following leave and may not dismiss or disadvantage an employee because of their use of or application for family-care leave (Article 13).
Wage replacement and employment insurance (Article 16-5):
- There is no mandatory employer-paid wage for family-care leave. Employees covered by Employment Insurance (Act No. 116 of 1974) and meeting insurance eligibility conditions may claim a family-care leave benefit (kaigo kyūgyō kyūfukin), typically about 67% of average wages, paid via insurance, not via the employer. Not all employees will qualify for this benefit as it is governed by a separate statutory scheme.
Shortened working hours and flexible arrangements for employees with family or childcare responsibilities (育児・介護休業法 Articles 23–24)
Japanese law entitles employees with small children or family-care responsibilities to demand adjustments to working hours—especially shortened or "flex-time" arrangements—under the Act on Childcare Leave, Caregiver Leave, and Other Measures for Workers Caring for Children or Family Members (Law No. 76 of 1991, as amended). These provisions coexist with parental leave and family-care leave, offering day-to-day work flexibility beyond outright absence.
## Who is eligible? Article 23 covers employees raising a child under age three. Article 24 creates parallel rights for employees providing care to a qualifying family member (as defined in Article 2). Both regular and eligible fixed-term employees qualify; day laborers and a few other categories are excluded per Cabinet Order. Employers must inform new hires of these rights, and the Ministry of Health, Labour and Welfare (MHLW) provides annual procedural detail.
## Shortened working hours—what is mandatory? Under Article 23, eligible employees with children under three have a statutory right to request shortened working hours (短時間勤務制度, tanjikan kinmu seido), reducing their prescribed working day to between 6 and 8 hours (at the employee's election, within employer-offered schemes). The employer is obligated to provide this arrangement as the default unless an exempting reason applies (e.g., companies with fewer than a specified number of employees may be temporarily exempt).
- Duration: The right persists until the child's third birthday.
- Type: Usually a uniform reduction (e.g., 6-hour day, as allowed by the employer's policy), not ad hoc or fractional reductions. Some employers may, by agreement, offer more flexible schemes.
- Exemptions: Employers with fewer than 101 employees may be exempt from mandatory provision until March 31, 2026 (transitional measure).
## [April 2025 Amendment] Telework as a required alternative, effective April 1, 2025 A June 2024 amendment to the Act (promulgated May 31, 2024, effective April 1, 2025) added a new obligation: employers must make telework (remote work) available as one of the "shortened working hours or similar measures" options for employees raising children under age three. This is a diligence (effort) obligation (努力義務)—employers must in good faith offer telework as an alternative unless there are operational reasons making it unfeasible. Existing exemptions for small employers still apply. This brings telework alongside traditional shortened hours and flexible scheduling as a core statutory accommodation.
- Effective date: Telework requirement applies from April 1, 2025 (令和7年4月1日施行) onward.
- Scope: Applies to all employers subject to Articles 23–24; small employer exemptions phase out March 31, 2026.
## Overtime exemptions and flexible work duty Employees using shortened working hours under Article 23 cannot be required to work overtime. Article 24 further requires employers to consider and, where practical, accommodate requests for flexible starting/ending times and exemption from late-night work.
## Procedural obligations and penalties Employers must clearly inform employees of these rights, accept requests practically, and prevent adverse treatment (retaliation, disadvantage, or termination) connected to their exercise. Violations can trigger administrative guidance and, in egregious cases, correction orders under the Act.
## Points for cross-border employers
- These obligations are in addition to any collective bargaining agreement or more generous company policy.
- The duty applies regardless of business needs unless a statutory exemption is met.
- The MHLW publishes detailed annual guidance and FAQs for employers (link below; Japanese only as of June 2026).
- Recent change: Telework is now a statutory measure employers must offer as of April 2025, reflecting post-pandemic legislative developments.
Source: Act on Childcare Leave, Caregiver Leave, and Other Measures (Law No. 76 of 1991, Articles 23–24, latest amendment, effective April 1, 2025) Source: MHLW guidance: Amendment summary and telework obligation (Japanese, June 2024) Source: MHLW official notice of 2024 amendment (Japanese)
Statutory commuting allowance (通勤手当): legal framework, tax-exemption ceilings, and payroll practice in Japan
Japanese employment contracts and payroll systems customarily include a commuting allowance (通勤手当, tsūkin teate) to reimburse reasonable employee transportation costs between home and workplace. While the Labour Standards Act does not mandate payment of a commuting allowance, this benefit is deeply embedded in Japanese HR practice, reflected in Ministry of Health, Labour and Welfare (MHLW) model work rules, and nearly universal for regular staff with set work locations.
Statutory/tax framework and 2026 ceiling revision: The Labour Standards Act does not create a statutory right to commuting allowances, but the tax-exemption rules for commuting expenses are set by Article 8 of the Cabinet Order on the Income Tax Act and the National Tax Agency (NTA). A material revision to these rules takes effect on April 1, 2026 (令和8年4月1日). Key features are:
• Public transportation: The non-taxable cap remains at ¥150,000/month for actual commuting costs via the shortest, most economical route using public transportation (no change from earlier years).
• Private vehicle/bicycle use (distance-based): A new, expanded distance schedule applies from April 2026:
- 55 km to under 65 km: ¥37,900/month (same as prior bracket)
- 65 km to under 75 km: ¥46,400/month (new bracket, increased)
- 75 km to under 85 km: ¥55,400/month (new bracket, increased)
- 85 km to under 95 km: ¥61,700/month (new bracket, increased)
- 95 km or more: ¥66,400/month (new bracket, increased)
- For shorter distances, preexisting ceilings remain per official table.
• Parking fee add-on: Effective April 1, 2026, when the employee’s commute by private vehicle requires paid parking at a qualifying workplace (generally where the workplace is over 2 km from a train station), up to ¥5,000/month in parking fees can be added to the otherwise applicable non-taxable ceiling. The parking fee exemption has specific criteria—refer to NTA and Cabinet Order guidance.
• Amounts above the relevant limit are treated as taxable income for payroll and must also be included for social insurance calculations.
Employer obligations and payroll administration: Employers are not required by law to pay a commuting allowance, but those that do must cap payments at the non-taxable thresholds and must document routes/costs (e.g., via commuter pass receipts or declarations). The MHLW’s model work rules include sample language for commuting allowances, but this is not mandatory law. Employers should update payroll and HR documentation to comply with the April 2026 rules.
Summary of 2026 amendments:
- Expanded tax-exempt brackets for longer-distance car and bicycle commutes (65km+), all higher than previous caps.
- New non-taxable allowance for paid parking (up to ¥5,000/month) added on top of the base commuting allowance for qualifying situations.
- Effective date: April 1, 2026. All employers with affected employees must update payroll/withholding practices by this date.
Source: Income Tax Act Cabinet Order, Article 8 & 2026 revised table Source: National Tax Agency 2026 Commuting Allowance Revision Q&A (Japanese) Source: MHLW model work rules, commuting allowance clause
Short-term family-care leave (介護休暇, kaigo kyūka): statutory entitlement, annual limits, and expanded infectious-disease coverage (2025 update)
Japan mandates a statutory short-term family-care leave system (介護休暇, kaigo kyūka) under the Act on Childcare Leave, Caregiver Leave, and Other Measures for Workers Caring for Children or Family Members (Law No. 76 of 1991). This leave is distinct from long-form family-care absence (kaigo kyūgyō) and enables employees to take leave in full-day, half-day, or hourly units to provide nursing care or medical attention to specified family members.
Statutory entitlement and annual limits. Article 16-5 of Law No. 76 of 1991 entitles eligible employees to take up to five days per fiscal year of kaigo kyūka per qualifying family member requiring care, or up to ten days if caring for two or more qualifying family members. Leave may be used as full days, half-days, or—by company policy—in hourly units. These days are in addition to, and do not overlap with, annual paid leave under the Labour Standards Act.
Material change (April 2025): Abolition of the six-month exclusion. Effective April 1, 2025, a significant statutory amendment abolishes the rule that permitted employers to exclude workers with fewer than six months of continuous employment from eligibility for short-term family-care leave if this exclusion was specified in a labor-management agreement. From April 1, 2025 onward, all employees otherwise eligible for kaigo kyūka—regardless of hire date or duration of service—must be permitted to take this leave. Employers may no longer use a labor-management agreement to restrict eligibility on this basis.
Expansion for infectious-disease measures (April 2025). The 2023 amendments extended kaigo kyūka availability to cover not only ordinary nursing care for injury, illness, or disability, but also leave taken to comply with infectious-disease prevention measures. This includes absences due to government-ordered home isolation, facility closure, or comparable events resulting from an infectious disease outbreak—codifying pandemic-era emergency leave as a regular statutory right. This expansion remains in force for the 2025 plan year and beyond.
Eligible family members and exclusions. The definition of qualified family members includes spouse (including common-law), children, parents, grandparents, siblings, or other dependents living with the employee (Article 2). Most fixed-term and part-time employees are eligible if they meet contract criteria; daily or very short-term contractors may still fall outside coverage by Cabinet Order.
Compensation and employer obligations. There is no statutory obligation for the employer to pay wages during short-term family-care leave, but many large employers grant paid leave as a matter of collective agreement or company policy. Retaliation or disadvantage for exercising this right is strictly prohibited (Article 10). Employers must carefully record usage and preserve confidentiality in accordance with MHLW guidance.
Documentation and HR practice. Employers may require reasonable documentation—such as a medical certificate, official notice of facility closure, or proof of home isolation order—but cannot impose excessive or burdensome requirements. Employers are expected to update internal leave policies and employee communications for April 2025 to reflect the expansion of statutory eligibility and covered events.
In sum: As of April 1, 2025, all employees otherwise eligible for kaigo kyūka are covered from their first day of employment, and the leave applies for ordinary family care as well as infectious-disease-related absences, with strong anti-retaliation protections.
Source: Act on Childcare Leave, Caregiver Leave, and Other Measures, Article 16-5, as amended by Law No. 28 of 2023, April 2025 enforcement Source: MHLW official guidance on 2025 kaigo kyūka amendment and infectious-disease expansion