The Unibanco Letters - Dual-Hatting Regulations and Global Enforcement

Establishing the Japan Presence - Employment Agreements - Overview Employment Relationships • In Japan, the employment relationship has some similarities to those in other advanced countries, but there are a number of key differences that employers should be cognizant of prior to hiring any employees • In Japan, employment relationships are primarily based on contracts, but statutes and court-established rules frequently modify and restrict the concept of freedom of contract in the field of employment relationships • Overall, although certain statutory rights may be limited, the courts and arbitral tribunals are employee friendly • The Labour Contract Law, sets forth basic principles governing employment contracts, and stipulates the requirements under which dismissals and disciplinary actions will be considered void • The Labour Standards Act establishes compulsory minimum standards (such as paid leave) that employers must observe • In addition, if an employer has 10 or more employees, the employer is required to establish in written form its "Rules of Employment" according to certain statutory minimum standards, and these Rules of Employment take precedence over less favorable contractual terms The Rules of Employment (after the 10th employee) and a number of ancillary agreements, such as an agreement to allow an employer to require employees to work overtime or on a discretionary work-hours system (more suitable for professionals), are required to be filed with the local Labour Standards Inspection Office • The key difference in many jurisdictions is that there is no concept of "at will" employment, and dismissals for cause are typically quite difficult Morgan Lewis 30

View entire presentation