Japan- 4-1 Discussion- Government Regulations PDF

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JAPAN: 4-1 Discussion: Government Regulations Various measures of government on trade and employment: Chosen Country: Japan Employment Law:  Minimum wage set by the Ministry of Health, Labour, and Welfare in Japan (Trade Economics.com, 2018-2019): o 901 JPY/Hour in 2019 o 874 JPY/Hour in 2018  Vacation (Kyurocheck.jp, 2016): o Paid Holidays- 10 days of paid leave if a worker continuously works for 6 months or more and 20 days/ year is the maximum number of days of paid leave. o Payments and National Holidays- There are 16 national holidays and workers must be given holidays. o Weekly Holidays- Employers must give workers at least one day a week  Employment guarantee (Kyurocheck.jp, 2016): o Labor Regulations- Once the employer issue a formal recruitment notice to the prospective worker and the person accepts it, the employment relationship has been established. Real-world employment relationships are traditionally based on lifetime employment. The retirement age is generally set between 55 and 60 years old. Both verbal and written employment contracts have no special provisions. The employer must clearly state the important working conditions in writing to the worker such as contract terms, workplace and work content, start and end times, breaks, wages, dismissals, retirement, and more; and if the employer has 10 or more employees, he or she shall submit it to the Standards Inspection Office. o Fixed-Term Employment Contract- The fixed-term employment contract must not be entered for more than 3 years or less unless the worker is over 60 years old or highly specialized. Also, even in the case of such an exception, the contract must not be completed for more than 5 years. The working conditions of fixed-term contract workers should not be unreasonable compared to regular workers, taking into account the obligations, responsibilities, potential dismissals, and division of work that arise for the work. In addition, if a fixed-term employment contract that exceeds five years in total is repeatedly renewed, the fixed-term employment contract must be changed to a regular employment contract. o Trial Period- There is no legal limit on the trial period. The probationary period is the period during which the employer determines the skills and qualifications of the worker and decides whether or not to hire the worker as a semi-permanent worker.  Fair Treatment (Kyuryocheck.jp, 2016): o Equal Pay for Equal Work- The Labor Standards Law imposes obligations on employers not to discriminate on working hours, wages, and other working conditions based on nationality, creed, social status, and gender. Those who violate this requirement will be fined up to 300, 000 yen or imprisoned for up to 6 months.

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o Non-Discrimination- The Constitution prohibits discrimination based on race, creed, gender, social status, or family origin and guarantees equality before the law. In addition, employers must not discriminate against wages, working hours, or other working conditions on the basis of nationality, beliefs, or social status. It is also forbidden to discriminate against people based on their previous occupation or trade union participation. o Freedom to Choose a profession- Under the constitution, workers are free to choose their profession as long as it does not interfere with the public welfare. Female employees are entitled to a usual prenatal and postnatal leave of 14 weeks, 6 weeks before childbirth, and 8 weeks after childbirth. If a woman is pregnant with two or more children at the same time, her antenatal leave will be extended to 14 weeks, for a total of 22 weeks. (Childcare/ Nursing Care Leave Law Enforcement Regulations (1991) Articles 4, 5, 6, and 7) (Kyuryocheck.jp, 2016)

Sales Tax (Tradingeconomics.com, 2020)  VAT (sales tax): 10% Trade Policies (International Trade Administration, 2019)  Certain items may require a Japanese import license. These include hazardous materials, animals, plants, perishables, and in some cases articles of high value. Import quota items also require an import license, usually for four months from the date of issuance.  A simplified tariff system for low-value freight valued at less than 200,000 Japanese yen (approximately $1,800 at 110 yen/$1), such as small packages, simplifies the determination of tariff rates. This system eliminates customs broker charges. Importers can choose either the normal rate or the simple tariff, which could be higher or lower depending on the product.  Japan’s tariffs are generally low, and they have some non-tariff barriers that may impact commercial activity by possibly impeding or delaying the importation of foreign products into Japan.  Japan law requires labels for products in many categories and the labeling for most imported products is not required at the customs clearance stage but at the point of sale.  To protect Japan from global terrorism, the government-administered its own export control legislation and implements “catch-all” controls to prevent Japanese firms from exporting goods and technologies that could be related to the development of weapons of mass destruction. As such, U.S. exporters are encouraged to conduct thorough research and background checks pertaining to any potential sale of controlled or sensitive items, in particular, for transactions that may involve possible transshipment or re-export through Japan.  Japan imposes restrictions on the sale or use of certain products including those related to health such as medical products, pharmaceuticals, agricultural products, and chemicals. Japanese customs reviews and evaluates the product for import suitability before shipment to Japan.  Japanese business entities are subject to various laws and product safety standards, which vary depending upon the industry or product segment. Japanese imports and distributors of foreign products cover product liability risk through the product liability clause in their own liability insurance.

Business Observations  Employment laws in Japan are somewhat similar to what the United States has with its benefits that their companies offer to their employees as well as the equal rights and opportunities they offer to their people to move up the corporate ladder.  The sales tax that the Japanese government imposed is fairly lower than those of other countries.  Importers from other countries have the freedom to choose between a normal rate of tariff or simple tariff when importing their products to Japan to be sold which will give them the advantage to gain some profits although since Japan have generally low tariffs, this might possibly delay their importation of products to Japan.  Japan’s export and import trading have grown rapidly throughout the years and with their policies and regulations at which their government strictly follow has made this country’s economy a success at the same time, it paved the way to create a good relationship to other countries especially the United States.

References: Tradingeconomics.com, 2020. Retrieved from https://tradingeconomics.com/japan/minimumwages Kyuryocheck.jp, 2016. Retrieved from https://web.archive.org/web/20161113183242/http://kyuryocheck.jp/home/labour-law Tradingeconomics.com, 2020. Retrieved from https://tradingeconomics.com/japan/sales-tax-rate

International Trade Administration, 2019. Retrieved from https://www.trade.gov/knowledgeproduct/japan-market-overview?section-nav=1805...