Pursuant to the amendment of Labor Contract Act established in 2012, an
employee with a fixed term labor contract will have a right to make an
indefinite term labor contract with the same employer in case such fixed
term labor contract meets the following conditions;
(1) Because of repeated renewal of the contract, the aggregate term of
contracts reached 5 years.
(2) He/she makes an offer of making an indefinite term labor contract to the same
While no employee has this right until April 1 2018, employers who have
fixed term labor contracts must prepare for an offer from such employee.
Possible measures to be taken by employers are as follows;
(a) Make it a policy to reject any renewal of a fixed term labor contract to keep the
aggregate term of the contract shorter than 5 years.
(b) Make provisions in rules of employment that are applied to indefinite
who will make an offer of making an indefinite term labor contract.
(c) Take no measures, meaning to treat each employee with the right individually.
Employers can take a measure (b) as the amendment of Labor Contract Act
solely relates to the term of labor contracts. Employers who would consider
taking this measure had better to start to make a draft amendment of their
rules of employment.
Establishment of exceptional cases to the employee’s right to make an indefinite
term labor contract are under discussions at the Central Labour Standards
Report by the Council on 14th February 2014 provides that “Special national
qualification holders, engineers earning a salary of no less than 10.75
million yen with very good experience, system engineers and designers”
are among the employees who cannot be given the right.