Working Hours Regulations and Telework-Part 1

June 13, 2024 ［No.123-2024］

Ph.D., Mitsuhide SHIRAKI
Professor Emeritus, Waseda University

 

 

“The 2024 Problem” has become a hot topic. It refers to various problems arising from the change made in April 2024 to set an annual overtime limit of 960 hours in the construction and transport industries. Previously, these industries were exempt from such a limit. It is predicted that strict enforcement of the overtime limit in these industries will lead to lower sales and profit, reduced salaries, and a higher turnover due to the reduced salaries. In the construction industry, construction costs may increase and construction may take longer. In the transport industry, shippers and consumers may incur higher costs and transport may take longer.

These industries need measures to improve operational efficiency and maintain business profit while reducing working hours.

What is the definition of working hours? A Supreme Court precedent defines it as “the time during which a worker is under instructions or orders of the employer.” This has been the standard for deciding whether a particular period of time is considered working hours.

Meanwhile, the Labor Standards Act sets exceptions to its working hours regulations due to their incongruency with the regulations.

The first is management level employees. They are considered to be the same as the company owner in terms of deciding work conditions and managing labor. They may come to or leave the office at their discretion without being subject to strict limits. The working hours regulations therefore do not apply to them. Note, however, a branch manager of a small hamburger franchise or men’s clothing franchise with a few employees may not be considered a manager. The decision depends on their specific authority and status.

The second is the discretionary labor system. This system applies to specialized duties and planning duties. Researchers and specialists are under the discretionary labor system for specialized duties. In this category, means and methods of work or time allocation must all be up to the workers. The discretionary labor system for planning duties, on the other hand, does not appear to be used much.