Unfair Dismissal in Japan: Abuse of Right to Dismiss Doctrine

Japan's dismissal protection is among the strictest globally. Labor Contract Act Art. 16: dismissal without objectively reasonable grounds and social adequacy is void as abuse of rights. Two requirements: rational reason and proportionality. Economic dismissal (seirikaiiko) requires four elements: business necessity, effort to avoid dismissal, rational selection criteria, and adequate consultation (Toyo Sanso doctrine). Disciplinary dismissal requires clear rules, opportunity to be heard, and proportionality. Remedies: request for dismissal reason certificate (Labor Standards Act Art. 22), status confirmation suit (with back pay), labor tribunal (max 3 hearings), or monetary settlement (typically 3-12 months' salary). Dismissal requires 30 days' notice or pay in lieu (Art. 20).