Significant Revisions to Equal Pay Guidelines Will Reshape Corporate Compensation Policies
In October 2026, the Japanese government will implement significant revisions to the Equal Pay Guidelines as part of the Part-Time and Fixed-Term Employment Law. This major overhaul, spearheaded by the Creer Human Resource Development Association headquartered in Chiyoda, Tokyo, means that companies will need to reevaluate their compensation structures to comply with new regulations.
The most notable aspect of the revisions is the introduction of criteria for assessing the rationality of various allowances, including retirement pay, family allowances, housing allowances, and accident-free bonuses. Previously, there were no clear guidelines regarding these components of compensation, which has now changed, creating a ripple effect for corporate practices.
One of the most impactful changes is regarding retirement pay (or severance pay). In this new framework, the purpose of retirement benefits, traditionally viewed as a deferred wage or a reward for service, must now be applicable to part-time workers and fixed-term employees as well. This shift means that if companies fail to provide equitable amounts of retirement pay based on job responsibilities and performance levels, it could be deemed unreasonable under the new guidelines. Consequently, companies that have conventionally only offered retirement benefits to full-time employees will struggle to justify such disparities in their compensation practices.
As the implementation date approaches, the Creer Human Resource Development Association has released an informative video aimed at illustrating the implications these changes have for businesses and the legal risks involved. The video is accessible for media professionals and corporate representatives, providing a concise overview of the guidelines along with key points to understand in a short format.
To support further understanding and clarification, the association will host an individual question-and-answer session on July 21st, 2026. This session will be open to media representatives and corporate personnel, allowing them to ask questions that delve deeper into the nuances of the new guidelines and their applications. Queries can be submitted on various topics including:
The speaker for this session will be Jun Ono, a licensed social insurance and labor consultant with over 400 training sessions focused on harassment and labor-related topics to his credit. He is known for his practical lecturing style, emphasizing the application of laws in workplace settings, and serves as a host for the Employment Clean Planner qualification program.
The Creer Human Resource Development Association was established in 2023 as part of the Group Company SA, specializing in certification and training programs focused on employment, labor, and harassment prevention. Over 750 individuals have successfully obtained the Employment Clean Planner certification, taking active roles within various sectors, including corporations, municipalities, and educational institutions. For more information, check their official website at https://koyo-clean.com/. The upcoming changes necessitate clear communication and adaptability within corporate frameworks to ensure compliance and equitable treatment across all employee categories.
As businesses prepare for these substantial changes, it will be vital to remain informed and proactive to minimize legal risks and uphold fair labor practices that align with Japan's evolving employment laws.
The most notable aspect of the revisions is the introduction of criteria for assessing the rationality of various allowances, including retirement pay, family allowances, housing allowances, and accident-free bonuses. Previously, there were no clear guidelines regarding these components of compensation, which has now changed, creating a ripple effect for corporate practices.
One of the most impactful changes is regarding retirement pay (or severance pay). In this new framework, the purpose of retirement benefits, traditionally viewed as a deferred wage or a reward for service, must now be applicable to part-time workers and fixed-term employees as well. This shift means that if companies fail to provide equitable amounts of retirement pay based on job responsibilities and performance levels, it could be deemed unreasonable under the new guidelines. Consequently, companies that have conventionally only offered retirement benefits to full-time employees will struggle to justify such disparities in their compensation practices.
As the implementation date approaches, the Creer Human Resource Development Association has released an informative video aimed at illustrating the implications these changes have for businesses and the legal risks involved. The video is accessible for media professionals and corporate representatives, providing a concise overview of the guidelines along with key points to understand in a short format.
To support further understanding and clarification, the association will host an individual question-and-answer session on July 21st, 2026. This session will be open to media representatives and corporate personnel, allowing them to ask questions that delve deeper into the nuances of the new guidelines and their applications. Queries can be submitted on various topics including:
- - The specifics of allowances and holidays that have been added under the revised guidelines.
- - Why the complete exclusion of retirement pay from part-time employees is now considered a legal infringement?
- - The requirements under which family and housing allowances must be equivalent for both full-time and part-time employees.
- - Strategies for improving the compensation of non-regular employees without reducing the benefits for full-time staff.
- - How to articulate the purpose of compensation in employment regulations to avoid potential disputes.
The speaker for this session will be Jun Ono, a licensed social insurance and labor consultant with over 400 training sessions focused on harassment and labor-related topics to his credit. He is known for his practical lecturing style, emphasizing the application of laws in workplace settings, and serves as a host for the Employment Clean Planner qualification program.
The Creer Human Resource Development Association was established in 2023 as part of the Group Company SA, specializing in certification and training programs focused on employment, labor, and harassment prevention. Over 750 individuals have successfully obtained the Employment Clean Planner certification, taking active roles within various sectors, including corporations, municipalities, and educational institutions. For more information, check their official website at https://koyo-clean.com/. The upcoming changes necessitate clear communication and adaptability within corporate frameworks to ensure compliance and equitable treatment across all employee categories.
As businesses prepare for these substantial changes, it will be vital to remain informed and proactive to minimize legal risks and uphold fair labor practices that align with Japan's evolving employment laws.
Topics People & Culture）
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