Japan to relax overtime regulation under workaholic PM Takaichi

Japan will ease overtime regulation starting September 1, 2023, aiming to stimulate economic growth but facing criticism for potentially reverting to the country's entrenched workaholic culture. Prime Minister Sanae Takaichi, a self-proclaimed workaholic, spearheaded the decision as part of a growth strategy announced in July. Approximately 40% of Japanese businesses operate under agreements permitting up to 100 hours of monthly overtime.

However, companies were previously advised to cap overtime at 45 hours per month, a guideline considered equivalent to regulation. The new rule eliminates such pressure, with inspection offices no longer emphasizing the 45-hour limit. Critics argue this move reverses Japan's efforts to modernize its corporate culture, historically characterized by long work hours.

The National Confederation of Trade Unions expressed concern, stating it represents an "unacceptable shift away from, and abolition of, the policy that urged companies to shorten work hours." The labour ministry maintains oversight to ensure employee well-being and will provide guidance if there's a high risk of health issues due to excessive work.

However, businesses without special agreements will still be bound by the 45-hour limit, and some companies are legally required to adhere to the standard 40-hour workweek.