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HOME >  NEWS >Ministry of Health, Labour and Welfare has formulated and published the "Employment Guidelines" pursuant to the Law on National Strategic Special Zone (effective as of 1st April, 2014).
Ministry of Health, Labour and Welfare has formulated and published the "Employment Guidelines" pursuant to the Law on National Strategic Special Zone (effective as of 1st April, 2014).

Ministry of Health, Labour and Welfare has formulated and published the "Employment Guidelines" pursuant to the Law on National Strategic Special Zone (effective as of 1st April, 2014).
http://www.kantei.go.jp/jp/singi/tiiki/kokusentoc/pdf/140401_koyou-hontai.pdf (Japanese)

The Guidelines was established to help start-up companies and foreign owned global enterprises that are at market entry into National Strategic Special Zone to understand Japanese employment practices and make appropriate labor agreements as well as rules of employment.

Details of the Guidelines are divided into the following sections;
(1) Analysis and categorization of court cases concerning labor issue on
 start-up companies or foreign owned enterprises in Japan
(2) Commentary on employment regulation and practice
(3) Advisory on drafting a sample labor agreement and labor
 management for companies supposed to make labor agreements
  for a definite term

As for section (3) above, the Guidelines provides that employers shall consider matters including but not limited to the following, in case they are supposed to hire an employee who can think on his feet as a manager or considerably high-end specialist with a very good salary;
・ Set a short probation period (up to three months subject to extension
 for up to three months on mutual agreement)
・ Make a job description and expected job performance as concretely as
  possible
・ Make a provision for the employer’s right of termination of labor
  agreement in case employee's performance won't have met
  employer's expectation.
・ During a probation period, make performance review on a regular
  basis and report the outcome to the employee

The Guidelines has a significant meaning that government publicly admitted lawful and effective terms under a labor agreement and rules of employment regarding prevention of labor disputes that may arise between an employee and foreign owned enterprise.

Courts would be difficult to decide in favor of an employee in case where an employer has acted in accordance with the Guidelines. For example, when lawfulness of termination of a labor agreement is challenged by an employee such employer as has been obedient to the above advisory (3) would be advantageous.

Considering importance of the Guidelines, it can be said that foreign owned enterprises had better review again their sample of labor agreements and rules of employment according to the Guidelines, whether they are at market entry into National Strategic Special Zone or not.