Supreme Court: daily reports alone do not make field work hours calculable

On 16 April 2024 the Supreme Court overturned a ruling that had denied deemed working hours to a field instructor simply because he filed daily reports. Courts must look at the nature of the work and how instructions and reports actually worked, including whether the reports' accuracy was objectively checked.

Status
Court ruling
Ruling
16 April 2024
Applies to
Employers applying deemed working hours to staff who work away from the office

What the court decided

The employee was an instructor at Kyodo Kumiai Globe, a supervising organisation for foreign technical intern trainees in Kyushu. He visited host companies at least twice a month each, drove trainees, gave day-to-day guidance and interpreted when problems arose. He booked his own visits, chose when to take breaks, could go straight from home to clients and back, and did not receive instructions or report during the day. At month end he submitted daily reports showing start and finish times, breaks, visits and tasks.

He claimed overtime pay. The employer said his field work fell under Article 38-2 of the Labour Standards Act, because his hours were difficult to calculate. The Fukuoka High Court disagreed, relying on the daily reports. The Supreme Court, Third Petty Bench, overturned that part and sent it back. The High Court had not examined whether the reports' accuracy was actually guaranteed; that the employer could in theory check with clients, or sometimes paid overtime from the reports, was not enough.

A supplementary opinion noted that remote and telework arrangements make the question harder to answer by rule of thumb, and each case turns on its facts.

Why it matters

Since the 2014 Hankyu Travel Support ruling, many advisers assumed any reporting system defeats deemed hours. This ruling keeps the rule alive for genuinely self-managed field work, but does not widen it.

Action for employers

Sources

General information for employers, not legal advice. Dates and thresholds 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.