What changes
The Act partially amending the Penal Code (Act No. 67 of 2022, promulgated 17 June 2022) abolished the two forms of imprisonment, with compulsory labour and without it, and created a single sentence usually translated as detention. Prisons can now tailor work and rehabilitation to the individual rather than requiring labour by default. A companion act (Act No. 68 of 2022) amended about 865 other statutes to match. Both took effect on 1 June 2025.
For employment law, the change is one of wording, not severity. In the Labour Standards Act:
- Forced labour (Article 117): one to ten years' detention or a fine of 200,000 to 3 million yen.
- Illegal intermediary exploitation and child labour (Article 118): up to one year's detention or a fine of up to 500,000 yen.
- Most core breaches, including unpaid overtime premiums, working beyond the 36 Agreement, denying annual leave and dismissal without 30 days' notice (Article 119): up to six months' detention or a fine of up to 300,000 yen.
- Article 120 offences, such as failing to file work rules or keep records, remain fine-only, up to 300,000 yen.
Company liability under Article 121 is unchanged. Offences committed before 1 June 2025 are still sentenced under the old terms. The same change runs through the Industrial Safety and Health Act and other employment statutes. Newer laws, such as the amended Whistleblower Protection Act, are written in terms of detention from the start.
Who it applies to
Every employer, and the managers who decide on hours, pay and dismissals.
Action for employers
- Update compliance materials. Policies and training that quote penalties as imprisonment with labour are out of date.
- Brief regional teams accurately. The headline is that labour standards breaches are criminal offences for individuals as well as the company, not that penalties went up.
- Keep records that show compliance. Time records, 36 Agreements and dismissal notices are what inspectors check first.
Sources
- Act partially amending the Penal Code and other laws (Act No. 67 of 2022), promulgated 17 June 2022; Cabinet Order No. 318 of 2023 setting 1 June 2025 as the effective date.
- Act on the arrangement of related laws following the Penal Code amendment (Act No. 68 of 2022).
- Labour Standards Act, Articles 117 to 121, as currently in force (e-Gov).
- Ministry of Justice, explanation of the purpose of the new detention sentence.