Takaichi’s ‘work, work, work’ mantra fuels backlash as Japan overtime rules relaxed nationwide

Japan will ease overtime regulation starting Tuesday, prompting backlash as critics claim it is a return to the nation's well-known workaholic culture. The change, announced by Prime Minister Sanae Takaichi, a self-proclaimed workaholic, aims to stimulate economic growth amid a deepening labor shortage. The new rule eliminates pressure on businesses to adhere to the 45-hour monthly overtime limit, which had previously been in place to prevent overwork-related deaths, known as "karoshi."

Approximately 40% of Japanese businesses operate under specific labor-management agreements that permit monthly overtime of up to 100 hours. Those firms were previously advised to cap overtime at 45 hours per month. However, this guidance was considered equivalent to regulation, as exceeding the threshold could increase risks for karoshi.

A Japan Chamber of Commerce and Industry survey conducted in May revealed that this pressure was restricting activity for about 20% of small and mid-sized businesses, particularly in industries like construction, transportation, and hospitality where labor shortages are prevalent. Critics argue that this move reverses efforts to modernize Japan's corporate culture, which has long revolved around grueling work hours.

Takaichi, known for her dedication to work, has been criticized for her own excessive work habits. She declared, "I shall work, work, work, work and work" upon her election as head of her conservative ruling party in October. In a widely mocked post on social media platform X, she stated that she gets only "zero to three hours" of sleep.

Despite the backlash, the labour ministry maintains that it will monitor businesses to ensure they take measures to protect employees' wellbeing. The ministry will provide guidance if there is a high risk of health problems arising from excessive work. However, the policy shift does not apply to all businesses in Japan. Those without special labor-management agreements will continue to be legally obligated to keep monthly overtime to 45 hours or less.

Some companies also face legal repercussions for exceeding the statutory working hours, which typically range from eight hours a day to 40 hours a week.