Corporate Law- View allLast updated: 2026-03-131 min readLawyer-Reviewed

Labor Compliance for Japanese Companies: Key Regulations and Penalties

Key Takeaways

  • Overtime orders without a 36 Agreement are illegal
  • Equal pay for equal work prohibits unreasonable treatment gaps between regular and non-regular workers
  • Anti-harassment measures are mandatory for all companies
  • Violations risk penalties plus public disclosure of the company name
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Key labor compliance areas: working hours (max 45h/month overtime, 720h/year with special clause; LSA Art. 36), equal pay (Part-Time/Fixed-Term Act Art. 8-9), harassment prevention obligations (Employment Policy Act Art. 30-2 for power harassment, Equal Employment Act Art. 11 for sexual harassment), and dismissal restrictions (Labor Contract Act Art. 16). Violations carry up to 6 months imprisonment or ¥300K fine.

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This article provides general legal information and does not constitute legal advice. For specific legal issues, please consult with a qualified attorney.

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