1. Human Resource Management Keiichiro HAMAGUCHI

2. Chapter 3 Section 7 Regular Workers and Non-regular Workers

3. (1) Overview Japanese workforce is divided into 2 groups: regular workers and non-regular workers. Regular workers enjoy stable employment from entry to mandatory retirement and seniority- based wages. Non-regular workers are less protected and paid. The number of non-regular workers in Japan is steadily increasing.

4. allmenwomen regular non- regular regular non- regular regularnon-regular 198583.616.492.67.467.932.1 199079.820.291.28.861.938.1 199579.120.991.18.960.939.1 200074.026.088.311.753.646.4 200667.033.082.117.947.252.8

5. (2) Restrictions on Dismissals and Fixed-term Contract Dismissals of regular workers are strictly limited (doctrine on abusive dismissals). Fixed-term contracts are terminated when reduction of workforce is required (function as a shock absorber). Despite some Supreme Court decisions on refusal to renew repeatedly renewed fixed-term contract, they are less protected than regular workers (four requirements on collective redundancy).

6. (3) Part-time Workers Part-time workers are defined as workers with shorter working hours than ordinary workers. But there are “quasi-part-timers” who work full time (part-timer as a status). Part-timers are paid on hourly basis and get few bonuses or retirement allowances.

7. (a) Wage Difference between Regular Workers and Part-timers LSL prohibits discrimination against women on wage (Art.4). But there is no general principle of equal pay for equal work (or work of equal value). Even if part-timers and regular workers perform the same work, the wage disparity is justified by the difference in their obligations (to overtime orders or transfer orders). Regular workers’ wage is determined by internal labor market, part-timers’ wage is determined by external labor market.

9. (b) Wage difference between Regular Workers and Quasi-part-timers When female non-regular workers and female regular workers perform equal work, wage difference exceeding 20% cannot be justified (Maruko Crossing Signal Company case). 2007 revised Part-time Work Law introduced equal treatment of particular part-time workers (in the same employment management and contractual status as regular workers). This means equal treatment between regular part- time workers and regular full-time workers. It may apply to only 4-5% of all part-time workers.

10. (4) Dispatched Workers The number of dispatched workers has been steadily increasing. There are 2 types of worker dispatching business: regular employment type and registration type. Dispatched workers have triangular relationship with workers dispatching agency (employment contract) and client company (direction).

11. permanentregisteredtotal 1990128,197382,070510,267 1995142,717469,339612,056 2000272,8431,113,5211,386,364 2001298,5611,449,3521,747,913 2002338,5941,791,0602,129,654 2003375,4061,986,9742,362,380 2004421,2001,844,8442,266,044 2005455,7821,933,9822,389,764

13. (5) Contract Work Arrangement In contract work arrangement, workers work in the client company, not under the direction of the client company but of the contracting company. In manufacturing sector, many abuses of contract work arrangement exist (in which client company directs the workers of contracting company).