Workforce Management Newsletter Vol.2

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Workforce Management Newsletter

  1. A number of reforms had been passed including ones permitting employees to make contributions to the Defined Contribution Pension Plan.
    Certain sections of the Defined Contribution Pension Plan and the Order for Enforcement of the Defined Contribution Pension Act had been revised and officially made public on August 10, 2011. The current reforms above had been made under a series of reforms in pension-related rules for the primary purpose of supporting the security and/or increase in income of the nation’s old-age group, including large reforms related to the adoption of a structure by which participants to the defined contribution plan (i.e. corporate pension plan) is able to make premium contributions on an individual basis, and the age for qualification loss in the defined contribution plan (i.e. corporate pension plan) had been increased. The current primary reforms include the following:
  2. Reforms had been passed with respect to minimum wage by prefecture.
    • Minimum wage by prefecture of each prefectural and city government in 2011 had been reformed. The primary reforms made with respect to minimum wage are as follows.
    • Summary of Minimum Wage System (Reference: Health, Labour and Welfare Ministry Homepage)
  3. The difficulty of dismissing employees in Japan
    It is more difficult to dismiss employees in Japan than in western countries. Chiefly, there is a big difference between the U.S. and Japan, where the former is able to dismiss employees at will under the principle of employment-at-will.


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