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Corporate LawPublished: 2026-03-13/Updated: 2026-09-221 min readLawyer-Reviewed

Labor Compliance for Japanese Companies: Key Regulations and Penalties

Key Takeaways

  • ✓Overtime orders without a 36 Agreement are illegal
  • ✓Equal pay for equal work prohibits unreasonable treatment gaps between regular and non-regular workers
  • ✓Anti-harassment measures are mandatory for all companies
  • ✓Violations risk penalties plus public disclosure of the company name

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Key labor compliance areas: working hours (max 45h/month overtime, 720h/year with special clause; LSA Art. 36), equal pay (Part-Time/Fixed-Term Act Art. 8-9), harassment prevention obligations (Employment Policy Act Art. 31 for power harassment, Equal Employment Act Art. 11 for sexual harassment), and dismissal restrictions (Labor Contract Act Art. 16). Violations carry up to 6 months imprisonment or ¥300K fine.

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This article provides general legal information and does not constitute legal advice. For specific legal issues, please consult with a qualified attorney.

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