#Japan #Tokyo #Employment Law #Sugawara #Labor Standards Act

Understanding the 2026 Labor Standards Act Amendments

In light of the evolving nature of work, discussions are underway about amending the Labor Standards Act for the first time in nearly four decades. A survey conducted by Yuichi Sugawara, a tax accountant managing the popular YouTube channel 'Datu-Zeirishi Sugawara-kun' which has over 1.4 million subscribers, sought to uncover how full-time employees perceive the upcoming changes scheduled for 2026. This article will provide a comprehensive overview of the survey results and clarify key points of the amendments that will directly affect employees.

Survey Overview

• - Survey Period: December 12, 2025
• - Methodology: Internet survey
• - Participants: 400 full-time employees aged 20 to 59 across Japan (50 men and 50 women per decile)
• - Conducted by: Freeasy
• - Please credit 'Datu-Zeirishi Sugawara-kun' when using the survey results.

Summary of Findings

The survey revealed some striking statistics:

• - Approximately half of respondents (53.8%) were not aware of the impending amendments to the Labor Standards Act.
• - Only 16% reported engaging in side jobs.
• - About 40% have experienced work-related communications outside of working hours.
• - Most respondents (48.3%) were undecided about whether the amendments would positively impact their working conditions.

Digging deeper, when asked if they were aware of the 2026 amendments, the majority (53.8%) responded 'not aware', with women (60.5%) being less informed than men (47.0%). Furthermore, only 9.8% of all participants claimed to fully understand the amendment's content, indicating a communication gap regarding significant changes affecting their working lives.

When inquired about side jobs, just under 20% of respondents expressed that they are currently engaged in them, reflecting a burgeoning trend but limited participation among full-time employees.

Experiences Outside Work Hours

The survey also explored the impact of work communications outside of regular hours. Approximately 11.3% stated they frequently receive messages after hours, while 28% shared that it happens occasionally. Conversely, over 33% reported never receiving work-related messages when not on the clock, indicating a stark difference in experiences among employees.

Perceptions of the Amended Law

Concerning how the upcoming labor law revisions might affect their working conditions, nearly half of respondents were noncommittal, reflecting uncertainty about the changes. A small percentage believed it would be beneficial, while a significant number perceived potential downsides or no improvements.

Key Amendment Points Explained

The proposed amendments aim to align labor law with the current realities of work, including remote work and the rise in the freelance workforce. Here are the primary points of change:

1. Calculation of Paid Leave Wages:
The amendment standardizes wage calculations based on actual wages rather than average wages, addressing disparities that particularly affect part-time workers.

2. Clarification of Statutory Holidays:
Companies will need to clearly define statutory and non-statutory holidays, ensuring proper compensation for holiday work.

3. Working Hours for Side Jobs:
New guidelines will treat main job and side job hours separately, potentially increasing the allowance for side work.

4. Weekly Work Hours Regulation:
The provision allowing certain industries to exceed 40-hour work weeks will be scrapped, standardizing the maximum to 40 hours.

5. Implementation of Break Periods:
A mandatory intermission of 11 hours between workdays will be introduced, encouraging better work-life balance.

6. Management Work Hour Regulations:
Management staff will now be subject to timekeeping regulations, ensuring fair compensation practices.

7. Right to Disconnect:
Employees will gain legal grounds to refuse work communications outside regular hours, promoting mental health and work-life balance.

Concerns and Realities

Despite the existence of labor laws, challenges such as misunderstanding among employers, limited enforcement by labor standards inspectors, and lenient penalties for violations have led to skepticism regarding their effectiveness. Many organizations remain unaware or neglectful of their obligations under current law, particularly regarding paid leave.

Conclusion

The proposed amendments to the Labor Standards Act in 2026 promise substantial changes that directly affect employees, including modifications related to paid leave and holiday definitions. As workplaces continue to evolve, it is essential for both enterprises and employees to stay informed and adhere to these regulations for a more equitable work environment.

About Yuichi Sugawara

Born in Mie Prefecture in 1975 and now residing in Tokyo, Yuichi Sugawara specializes in tax reduction and cash flow strategies. His YouTube channel, launched in December 2022, has surpassed 1.4 million subscribers and he consistently ranks high among tax-related bloggers in Japan. Sugawara has delivered over 1,000 seminars across various industries, and his publications have achieved bestseller status, making him a notable authority in business finance.