The revised Worker Dispatch Law went into effect on October 1st this year as a measure to protect and stabilize the status of a growing number of non-permanent employees (employees with fixed term contracts, part time employees and dispatched workers) in Japan. The trend has contributed to an unstable working environment especially for young people because of the relative ease with which they can be laid off by their employers.
Under the revised law, staffing companies are now prohibited in principle from dispatching day laborers (hiyatoi haken) for engagement of 30 days or less. They are also obligated to give consideration to whether, although not necessarily ensure that, dispatched workers receive treatment comparable to regular employees in terms of wages, training and benefits, and to take measures to offer them positions as permanent employees.
Companies accepting dispatched workers are prohibited to accept former employees as dispatched workers if less than one year has passed since separation, and when terminating a contract with the staffing companies, they are also obligated to take measures such as introducing new job opportunities for the dispatched workers or covering the costs required for work suspension allowances.
Beginning on October 1st of 2015, companies receiving dispatched workers will be deemed to have entered into direct employment relationship with the dispatched workers if they knowingly receive dispatched workers in violation of the law.