The traditional seishain accepts that the company can move them to any job and any city. A limited regular employee keeps the open-ended contract and the regular-employee package but agrees a boundary: a set region or office, a set job, or shorter hours. The government has promoted these "diverse regular employees" since the mid-2010s as a way to keep people who cannot relocate, such as carers and parents, and as a bridge for contract staff moving to open-ended terms. Pay is often somewhat lower than for unlimited regular staff, to reflect the narrower obligation.
The limit has legal effect. Since April 2024 every hire's written terms must state how far place of work and duties can change in future, so the boundary is now on paper from day one. In the Shiga Prefecture Social Welfare Council case of 26 April 2024, the Supreme Court held that where employer and employee have agreed to limit the job, the employer has no power to order a transfer outside it without the employee's individual consent, even when the original work disappears.
The other side is redundancy. Where a location or job closes, courts may weigh the limit when judging whether the employer did enough to avoid dismissal, but the employer is still expected to try.
What it means for a foreign employer
- A job-based offer is a limit. If you hire a specialist into a defined role, the 2024 ruling means you may not be able to move them to different work later without consent. Write the scope deliberately.
- Location limits are a recruiting tool. Candidates outside Tokyo, and those with family ties, value a written promise not to be relocated.
- Do not use it to cut pay quietly. Lower pay for a limited role needs to reflect the actual difference in obligations.
- Plan for closure. If a limited role may end, think about redeployment options and consent before you need them.
Sources
- Supreme Court, Shiga Prefecture Social Welfare Council case, 26 April 2024.
- Ordinance for Enforcement of the Labour Standards Act, Article 5, as amended in force April 2024.
- Ministry of Health, Labour and Welfare, guidance on introducing diverse regular employees (2014 expert panel report and later materials).