Supreme Court: no transfer outside an agreed job limitation without consent

On 26 April 2024 the Supreme Court held that where employer and employee have agreed to limit the employee's job and duties, the employer has no power to transfer them to other work without their individual consent, even to avoid a dismissal when the work disappears.

Status
Court ruling
Ruling
26 April 2024
Applies to
Employers with staff whose job or duties are limited by agreement, written or implied

What the court decided

The employee was hired in 2001 as a technician to adapt and build welfare equipment at a prefectural centre, which the Shiga Prefecture Social Welfare Council took over running in 2003, and did that work for about 18 years. Nothing in writing limited his job, but the lower courts found an implied agreement that he would only do that work. When demand fell, the council transferred him to facilities management in its general affairs section from 1 April 2019, without his consent. The lower courts accepted the transfer as a legitimate way to avoid dismissing him.

The Supreme Court, Second Petty Bench, unanimously disagreed. Where there is an agreement limiting the job or duties, the employer simply has no power to order a transfer that breaks it without the employee's individual consent. The question of abuse of that power never arises. The case was sent back, and in January 2025 the Osaka High Court found the council liable in tort.

Why it matters

Since the 1986 Toa Paint case, Japanese employers have assumed a broad right to move staff. This ruling sets the limit: the right depends on the contract. It comes as job-based hiring spreads and, since April 2024, every hire's written terms must state how far duties and workplace may change.

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.