A kibo taishoku programme is an offer, open for a set period, to employees who meet certain criteria, typically age and grade, to resign in exchange for a package above the normal retirement allowance. Many programmes also offer outplacement support. Employees choose whether to apply, and companies can usually decline applications from people they want to keep.
It exists because the alternative is so difficult. A redundancy dismissal in Japan has to pass a demanding four-part test, and efforts to avoid dismissal, such as voluntary programmes, are one of the things courts look for. So restructuring in Japan usually starts with asking for volunteers.
The legal line is pressure. An invitation to apply is lawful. Repeated, coercive interviews designed to make an individual resign can turn a voluntary programme into an unlawful forced resignation.
What it means for a foreign employer
- Watch the announcements. When a large Japanese company announces a programme, a cohort of experienced managers, often in their late forties and fifties, enters the market at the same time.
- These candidates have just been paid to leave. They are often in a good financial position, and in no hurry. Make the role interesting rather than relying on urgency.
- If you restructure, expect to do it this way too. Foreign companies in Japan generally follow the same playbook, and a well-run voluntary programme is the lowest-risk route.
Sources
- Labour Contract Act, Article 16; case law on redundancy dismissals and on unlawful pressure to resign.