Equal pay for equal work 同一労働同一賃金

The rule against unreasonable pay differences between regular and non-regular employees. Also written doitsu rodo doitsu chingin, same work same pay.

Despite the name, this is not a gender pay rule. It addresses the gap between seishain, the permanent full-time employees, and non-regular workers: part-timers, fixed-term contract staff and agency workers. Under the Part-Time and Fixed-Term Employment Act, as amended by the Work Style Reform, an employer may not set differences in base pay, bonuses, allowances or benefits that are unreasonable in light of the job content, the level of responsibility, the scope for changes in job and location, and other circumstances. Where those factors are the same, the treatment must be the same. Agency workers are covered by parallel rules in the Worker Dispatch Act.

The test is applied to each element of pay separately, not to total compensation. Courts ask what each allowance or benefit is for, and whether that purpose applies to the non-regular worker too. In October 2020 the Supreme Court delivered five judgments in a single week. In the Japan Post cases, denying fixed-term workers family allowances, year-end holiday pay and paid sick leave was held unreasonable. In the Osaka Medical and Pharmaceutical University and Metro Commerce cases, denying bonuses and retirement allowances was held not unreasonable on those facts, because the roles and responsibilities differed.

Employers must also explain the reasons for any difference if a non-regular worker asks.

What it means for a foreign employer

Sources

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General information for employers, not legal advice. Thresholds and dates are checked against the sources listed and dated above; confirm anything you act on with a Japanese employment lawyer or a licensed labour and social security attorney.