Employment Termination

Hello Friends,

I’m in an unfortunate situation where my employer is not honoring their commitments in terms of salary and bonus. I stupidly started employment on a “temporary” contract that has never changed. They are now seeking to terminate my employment, I’m curious if anyone experienced being laid off in Japan? I’ve heard the labor laws make this difficult. Any one gave advice on what I should be expecting? I’m in a senior role and have an excellent track record in delivering results (they are terminating because they do not want to pay agreed salary / bonus and have the results).

8 comments
  1. Before anyone can give a helpful answer, I think you need to clarify:

    1-Are you a hakken, an agency temp, or a seishain. I.e. are you on a direct, fixed time contract (like a consulting contract), a temp, or a full time permanent employee.

    2-Are they actually terminating you, or not renewing? Is there a termination clause in your contract and/or a notice period.

  2. First, gain some time by calling a sick leave due to pressure and harassment.
    2nd during that time off, start looking for alternative

  3. It sounds very much like you should be speaking with an attorney.

    Do you have anything in writing regarding the bonus/permanent salary?

    Regarding the termination, yes, the bar is very high for that.

    If they are couching it as a layoff, they must demonstrate a financial necessity, take steps to remediate the financial issues (executive salary reductions etc.) then they need to openly solicit volunteers for early retirement, and once all that is done they can lay off specific individuals but there has to be a solid rationale to the selection process.

  4. If they do not pay you your salary as stated in your contract then you can pretty much go ahead and consult a lawyer or labour bureau. Record all conversations with your employer.

    If you’re a permanent worker, they probably can’t fire you directly since that will largely tarnish their reputation, but they can basically ‘quiet fire’ you by putting you into bad working conditions (personal experience).

    If you’re working on a contract, then they can refuse to renew it when it’s due (also personal experience). As a contract employee, there isn’t much you can do to dispute this.

    In either case, strongly recommend to look for a new job.

  5. Don’t “voluntarily” retire. They might heavily imply your job is voer, but in fact, they are forcing you to retire. Lawyer up.

  6. They must pay by the salary specified in the contract, unless there is a stated reason to reduce salary, such as tardiness or missed work.

    If you are contracted on a temporary basis, you aren’t in power to contest the duration of your term; as long as they honor the contract, they are not obligated to renew. If you are on a dispatch basis, the law requires you to be a fully-fledged employee after 3 years, under an unlimited term.

    The company doesn’t want you to be seishain, so they are ending after 3 years, without any legal troubles. If they aren’t honoring your contract, you can take it to a lawyer, union, or labor board to examine the issue.

    Use your paid holidays to find a new job

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