Fixed overtime pay (minashi zangyou) is not inherently illegal but must meet court-established requirements (Tech Japan case, Supreme Court 2012.3.8): (1) Clear separation between base pay and fixed overtime component, (2) payment genuinely for overtime work, (3) obligation to pay excess beyond fixed hours. Invalid patterns: no base/overtime distinction, refusal to pay excess, 80+ fixed hours (exceeds Art. 36 agreement limits of 45 hours). Underpaid overtime calculation: actual hours minus fixed hours × overtime premium rate (25% weekday, 50% night, 35% holiday under Labor Standards Act Art. 37). Statute of limitations: 3 years (Art. 115, 2020 reform from prior 2 years).
Labor Issues- View allLast updated: 2026-03-13
Fixed Overtime Pay in Japan: Validity Requirements and Underpaid Overtime Claims
Key Takeaways
- ✓Fixed overtime pay is invalid if not clearly separated from base salary
- ✓Overtime exceeding the fixed hours must be paid separately
- ✓Invalid fixed overtime pay becomes part of the overtime calculation base
- ✓Job listings stating "includes deemed overtime" require careful scrutiny
Free Tools for This Area
This article provides general legal information and does not constitute legal advice. For specific legal issues, please consult with a qualified attorney.
Related Articles
How to Claim Unpaid Overtime Pay in Japan: Complete Guide
Complete guide to claiming unpaid overtime pay in Japan based on Labor Standards Act Art. 37.
Wrongful Termination in Japan: Your Rights and Options
Guide to wrongful termination rights in Japan under the Abuse of Dismissal Rights doctrine.
Power Harassment in Japan: Definition, Types, and Legal Remedies
Guide to power harassment law in Japan: 6 types, evidence collection, and legal remedies.
Related Q&A
Related Legal Terms
Find a lawyer through your local bar association
JFBA Legal Consultation Guide →