[Question]My employer told me that I don’t have to report to work any more and subsequently dismissed me without any prior warning. What course of action can I take?

[Answer]

Employers cannot dismiss workers without a valid reason. Labor Standards Law says “dismissal without objective and rational reasons and unacceptable by current social norms, will be considered as an abuse of power and is therefore invalid.” The law also specifies that an employer should give at least 30 days’ advance notice to an employee if the employer wishes to dismiss an employee. If an employer fails to do so, he/she has to pay the average wages for a period of not less than 30 days instead. Exceptions to this rule are when a company cannot continue its business operation due to natural disasters and other unavoidable causes or when an employee is dismissed for reasons attributable to him/herself and an employer applies and obtains the approval to dismiss the worker from the Labor Standards Inspection Office. This provision does not apply to the following types of workers:

1) Workers who are employed on a daily basis
2) Workers who are employed for a fixed period not exceeding two months
3) Workers who are employed in seasonal work for a fixed period not exceeding four months
4) Workers still in a probationary period, who have not been employed for more than 14 days

For consultation, please contact the competent Labor Standards Inspection Office in the area a company is located. You can also get advice by contacting Osaka Prefectural Labor Office.

[Question]I was employed on a one-year contract, but I resigned earlier for personal reasons. The employer says he would deduct one month’s salary from the amount of arrears because there was a breach of contract on my part. Is such a thing to be permitted?

[Answer]

Employees are not allowed to resign during a specified contract period unless they have unavoidable reasons. You should fully explain your situation to convince your employer why you have to cancel your contract before the term of service is completed. However, if your working conditions violate your contract, you can leave the company immediately without giving notice.  Also the Labor Standards Law stipulates “An employer shall not make a contract which fixes in advance either a sum payable to the employer for breach of contract or an amount of indemnity for damages.”  So such a penalty included in your contract is illegal, therefore invalid. Personal reasons can be interpreted in numerous ways, but if you have to go home due to family matters back home or you are sick, they can be regarded as unavoidable reasons.

If your employer incurs damages due to your departure, you may be asked to compensate for the actual damages. Even in this case your employer has to prove that damages were actually done and that this damage was caused by your resignation. Even if you are obliged to compensate your employer for the damages, your employer cannot deduct salary without your consent.