Japan to relax overtime rules under ‘workaholic’ PM

Japan plans to ease overtime regulations starting Tuesday, a move aimed at boosting economic growth, but critics argue it will encourage the country's ingrained workaholic culture. The decision comes after the government led by Prime Minister Sanae Takaichi, who has admitted to being a workaholic, adopted a growth strategy in July calling for revisions to current work hour oversight.

The change, partially due to business sectors seeking more flexible work styles in response to a deepening labor shortage, affects approximately 40% of businesses operating under specific labor-management agreements that legally permit monthly overtime of up to 100 hours. Companies were previously advised to cap overtime at 45 hours per month, a guideline considered equivalent to regulation, as exceeding that threshold could increase the risk of "karoshi," or death from overwork.

Under the new rule, labor standards inspection offices will no longer push businesses towards the 45-hour cap, potentially benefiting around 20% of Japan's small and mid-sized businesses, particularly in industries like construction, transport, and hospitality that are short-staffed. However, critics contend that this move reverses efforts to modernize Japan's corporate culture, which has traditionally emphasized marathon work hours.

Once known for "corporate warriors" fiercely dedicated to their jobs, Japan has recently intensified initiatives towards a better work-life balance, following the 2015 suicide of a 24-year-old employee at advertising giant Dentsu due to overwork. The National Confederation of Trade Unions, or Zenroren, expressed concern over the shift, stating that it represents an "unacceptable change away from and abolition of the policy that urged companies to shorten work hours."

The labor ministry, however, assures it will continue to monitor companies and provide guidance if there is a high risk of health problems arising from excessive work.