Accord should help rectify spread of long working hours in Japan

While curbing long working hours, the environment should be improved so that diverse human resources will be able to actively participate in society. The latest agreement should be one that helps rectify the current situation in which the practice of working excessively long hours prevails.

The Japan Business Federation (Keidanren) and the Japanese Trade Union Confederation (Rengo) have reached an accord in the negotiations on setting an upper limit on overtime hours.

The upper limit for overtime should be set at, in principle, up to 45 hours a month and up to 360 hours a year. During busy periods and the like, the upper limit is permitted, exceptionally, up to 720 hours a year, which means a monthly average of up to 60 hours.

As to the monthly upper limit during busy periods – a focal point of the negotiations – both sides have effectively reached a conclusion by setting it at "less than 100 hours."

Concerning the 100 hours, Keidanren had insisted on setting it at "100 hours or less" monthly, while Rengo had asserted it should be set at "less than 100 hours." Sympathizing with Rengo, Prime Minister Shinzo Abe arbitrated.

This may indicate Abe's will to carry through "work style reforms.”

The labor-management agreement signifies a big step forward.

The government will shortly decide on an implementation plan for work style reforms that will reflect the latest agreement, and aims to swiftly submit a related bill to the Diet.

The Labor Standards Law sets the hours of labor at up to eight hours daily and at up to 40 hours weekly, but it is possible to permit overtime if a labormanagement agreement is formed.

The standard overtime hours are set at 45 hours or shorter monthly and at 360 hours or shorter annually.

But these yardsticks are not legally binding. Moreover, it is possible to exceed these standards without limit if an exception is made under a relevant accord.

While rectifying the current situation in which practically the sky is the limit for permitted overtime, the upper limit for overtime is to be incorporated into law.

Penalties for violations are also being introduced. In curbing the practice of working excessively long hours, setting the upper limit by law is significant.