Japan's statutory working week is 40 hours, eight hours a day. Any work beyond that, or on a statutory day off, is illegal unless the employer has signed a 36 Agreement with a majority union or an employee representative and filed it with the Labour Standards Inspection Office. The name comes from the article number.
Since the 2019 reforms the agreement cannot authorise unlimited overtime. The ordinary limit is 45 hours a month and 360 hours a year. A special clause can go higher for exceptional periods, but never above 720 hours a year, never 100 hours or more in a single month including holiday work, and never more than an 80-hour average over any two to six months. The 45-hour limit can be exceeded in at most six months a year.
Overtime is paid at a premium of at least 25%, rising to 50% for hours beyond 60 in a month.
What it means for a foreign employer
- Every entity needs one if anyone works overtime. A small Japanese subsidiary with no 36 Agreement on file is breaking the law the first time someone stays late.
- "Manager" does not automatically mean exempt. Managers in a genuine supervisory position are exempt from the overtime rules, though not from the late-night premium. Courts have rejected the exemption for people who carry a manager title without real authority, pay or control over their hours.
- It shapes pay when people move. Non-managers' pay often includes substantial overtime. See nenshu.
Sources
- Labour Standards Act, Articles 32, 36 and 37, as amended by the Work Style Reform legislation (in force April 2019 for large employers, April 2020 for smaller ones).