Japan relaxes overtime rules under workaholic Takaichi: ‘unacceptable shift’

Japan will ease its overtime rules starting on Tuesday, a move that aims to boost the economy but has been criticized as a return to the country's workaholic culture. This change comes from the government led by Prime Minister Sanae Takaichi, who has openly admitted to being a workaholic.

The policy shift is a response to a growth strategy introduced in July, which called for adjustments to the current work hour regulations. This change particularly responds to demands from certain businesses grappling with a severe labor shortage. About 40% of Japanese companies operate under specific labor-management agreements that legally permit monthly overtime of up to 100 hours.

However, those companies are still advised by authorities to limit overtime to 45 hours per month. This guidance is effectively a regulation because surpassing this threshold could increase the risk of "karoshi," or death due to overwork, according to a labor ministry official.

Under the new rule, which began on Tuesday, labor standards inspection offices will no longer push businesses towards the 45-hour cap. A survey by the Japan Chamber of Commerce and Industry in May revealed that this pressure was hampering the activities of roughly 20% of Japan's small and medium-sized businesses, especially in industries like construction, transport, and hospitality that face labor shortages.

Critics, though, argued that this move is a step back from Japan's efforts to modernize its corporate culture, which has traditionally been characterized by relentless work hours. The country has recently made strides towards a better work-life balance, notably after the 2015 suicide of a 24-year-old employee at advertising giant Dentsu due to exhaustion.

The National Confederation of Trade Unions in Tokyo, commonly known as Zenroren, expressed strong disapproval of the shift, calling it an "unacceptable reversal and abolition of the policy urging companies to shorten work hours." The labor ministry, however, insisted it would continue to oversee companies to ensure they take measures to safeguard employees' wellbeing, offering guidance if there's a high risk of health problems stemming from excessive work.