Employment conditions unilaterally changed. Is this valid?

What the Law Says

Japanese labor law strictly limits an employer’s ability to change working conditions without agreement.

Under the Labor Contract Act, an employer may not unilaterally change important employment conditions — such as wages, working hours, or job duties — unless the change satisfies strict legal criteria.

Article 9 of the Labor Contract Act states that 'a change to the terms of a labor contract made unilaterally by the employer shall not take effect unless it is reasonable in light of the degree of disadvantage imposed on the worker, the necessity of the change for the business, the fairness of the new terms, and other relevant circumstances.'

Even if a change is deemed reasonable, the employer must give at least 30 days’ advance written notice — or provide adequate compensation in lieu — and must consult with employees or their representatives before implementation.

Changes introduced via revised work rules (shūgyō kisoku) only bind employees if those rules were lawfully established, filed with the labor standards inspection office, and communicated to workers.

Statutory Text

a change to the terms of a labor contract made unilaterally by the employer shall not take effect unless it is reasonable in light of the degree of disadvantage imposed on the worker, the necessity of the change for the business, the fairness of the new terms, and other relevant circumstances.

— Labor Contract Act, Art. 9 — Effect of Unilateral Change to Labor Contract Terms

What to Do

Sources