In the previous Labor Management Tips article, we learned about Japan’s rules regarding working hours, breaks, and holidays.
The term “Agreement 36” was mentioned in that article.
This time, let’s review more information about the Agreement 36.
The Agreement 36 is a labor-management agreement regarding overtime and holiday work.
It is commonly called the “Agreement 36 (36協定, Saburoku kyoutei)” because it is based on Article 36 of the Labor Standards Act.
When a company concludes this labor-management agreement with its majority union or employee representative and submits it to the Labor Standards Inspection Office, the company can have its employees work beyond the statutory working hours or on statutory holidays stipulated by the Labor Standards Act.
*The Agreement 36 must specify information such as the types of work involving overtime and the upper limits for overtime per day, month, and year.
However, concluding and submitting an Agreement 36 does not mean that unlimited overtime work or holiday work is permitted.
The Labor Standards Act stipulates as follows:
(1) The upper limit for overtime work (excluding holiday work) is, in principle, 45 hours per month and 360 hours per year.
(2) Even in cases of temporary special circumstances, and an Agreement 36 with a special clause is concluded and submitted:
(a) Overtime work must not exceed 720 hours per year.
(b) Overtime work and holiday work combined must total less than 100 hours per month, averaging no more than 80 hours over a period of two to six months.
However, overtime work exceeding 45 hours per month is permitted for a maximum of six months per year.
Please note that the Agreement 36 cannot be applied retroactively.
Therefore, if overtime work or holiday work is anticipated, employers must submit an Agreement 36 in advance to the Labor Standards Inspection Office.
Since the agreement is valid for one year, it must be renewed and resubmitted annually.
You can request a Labor and Social Security Attorney (Sharoushi) to draft and submit the Agreement 36 on your behalf.
The aforementioned statutory upper limits were applied in 2019 (in 2020 for small and medium-sized businesses) following the 2018 amendment to the Labor Standards Act.
The amendment addresses Japan’s longstanding issue of excessive overtime work, which has resulted in overwork-related deaths and mental health issues.
Considering employee health and work-life balance, let’s create a workplace environment that minimizes overtime work.
If you have concerns about labor management, we recommend consulting a Sharoushi, Labor and Social Security Attorney, who is a professional in labor management.
“Sharoushi” is a national license regarding labor and social security related laws.
Stay tuned for the next Labor Management Tips!
