(Re)Posting here from r/Japan
I signed a 3 year contract with a company in September 2022, let’s call it Company A, but last week I was told that Company A is closing down in March 2024. To summarize, my boss has two companies (Company A and Company B), and he decided to keep only Company B. He offered me a position at Company B but it is not really my line of work (plus, I personally don’t see Company B going that far)
The contract I signed has clauses on termination/dismissal in case of employee requesting to resign for personal reasons, predetermined period of employment ends, death of employee (???), employee is deemed unable to handle the assigned work and any other serious problem that merits dismissal after the appropriate procedures have been taken. As expected, it doesn’t have any clauses on termination due to closure.
Isn’t i messed up that I am offered a 3 year contract and then less than a year later I am told the company is closing?
I was wondering what are my rights in this situation?
I couldn’t find anything about that in the labour law? Has anyone been through that?
PS: I’d like to avoid taking legal action, getting a lawyer, going to court and all that trouble at least for now. Looking for advice so I can come to an agreement with the company.
10 comments
Were you relying on this contract for the purpose of a sponsored visa by any chance?
Sorry things didn’t work out for a long-term role. But…
I mean…. Companies close. If they are not projecting to make money and don’t have revenue, that is their only option.
What are you hoping for? You should be able to keep your visa and that will lower your barrier to entry for a new employer.
https://old.reddit.com/r/japanlife/comments/lc15lp/company_closing_as_a_seishain/glxpwh5/
I would suggest asking once for a severance package and if it is not what you want to accept, switching to Company B and do the bare minimum while looking for a new job.
Is the current plan to pay you through to March 2024 without coming in? That would sound very decent to me.
I’m sorry to hear that you are going through this. It is definitely not fair that you were offered a 3 year contract and then less than a year later you are told the company is closing. I understand that you would like to avoid taking legal action, but it is important to know your rights in this situation. The Labour Standards Act does not specifically address termination due to closure, but it does provide some general protections for employees. For example, the Act requires employers to give employees at least 30 days notice before terminating their employment. If an employer does not give the required notice, the employee may be entitled to compensation. Additionally, the Act prohibits employers from discriminating against employees based on their race, gender, religion, or other protected characteristics. If you believe that you have been discriminated against, you may be able to file a complaint with the Labour Standards Inspection Office. I would recommend speaking to an employment lawyer to learn more about your rights and options in this situation.
Former lawyer here. Please PLEASE consult an actual lawyer instead of some randoms on the internet (Yes yes irony)
Many firms will offer a free initial consultation and depending on your nationality, your embassy should keep a list
People hate using lawyers because it seems and is stressful. However, hiring an expert with credentials and experience can save you much more stress and time in the long run
There were a lot of times in my previous career where people relied on the internet and their own research (That’s good but only goes so far and suffers greatly from preferential bias) to make poor choices and THEN coming to us when earlier would have been much better.
Do not resign. Either take the B job or tell your boss you will be expecting a termination and severance package as per Japanese labor law.
Sounds the employer here is doing right by the employee – giving plenty of advance motions offering him continued work.
Generally speaking, if you are employed on a fixed-term contract your employment cannot be terminated before the end of the contract unless you both agree or there are “unavoidable reasons”. My understanding is that what is an unavoidable reason is not defined statutorily and therefore will require a labor tribunal’s interpretation.
You could try to negotiate with your boss and see if he will offer you a severance package in exchange for you to agree with to the termination. Short of that, you will have to file a complaint for unfair dismissal and go before a labor tribunal.
Having said that, closing down the company would most likely be considered an unavoidable reason. Furthermore, since you have been offered a transfer to another company, I don’t think that a labor tribunal will be overly sympathetic to your argument that it’s not in your line of work or that you think the other company has no future. I think they will say that you have been fairly offered a way to finish your contract.
You’re in a difficult spot. My advice is to have a consultation with the Labor Bureau. Here is the list of their offices with English speaking staff: [https://www.mhlw.go.jp/bunya/koyou/gaikokujin12/pdf/english_0010.pdf](https://www.mhlw.go.jp/bunya/koyou/gaikokujin12/pdf/english_0010.pdf)
Good luck!
The best thing to do is probably nothing. Keep showing up a work. Force them to start asking you why you are still showing up, try to get them to offer you something (other than a job you didn’t contract for). If they want to liquidate the company they have to pay off all its debts which includes whatever you are entitled to.