Legal Regulations

Key Points of the Revised Worker Dispatching Act That Took Effect on September 30, 2015 and Its Impact on the Company

Some key points to ensure that clients can continue to use dispatching companies without worry.
Key Point 1 Is the dispatching company hiring the dispatched worker as a regular employee?

If the dispatched worker is not hired as a regular employee by the dispatching company, the client can use the same dispatched worker for the same job for no more than three years.

Key Point 2 Has the dispatching company obtained a business license from the Ministry of Health, Labour and Welfare?

If the dispatching company only submitted a notification and has not been licensed by the Ministry of Health, Labour and Welfare, the company will be unable to operate unless it meets the license requirements* (a three-year transitional measure applies).

*License requirements before the revised law took effectNotification only
Skill development programsOfferedNo rules
Standard assets20 million yen or more per office
Cash and savings15 million yen or more per office
Office areaApprox. 20 m2 or more
On-site inspectionYes
Validity3 years initially, 5 years thereafter
(Reference) Media reports related to the revised Worker Dispatching Act (the reports have no direct impact on the Company)
News topicsRelevant provisions of the revised law
Lifetime dispatchAfter a dispatched worker (fixed-term employment, registered employee) completes a job in three years, another dispatched worker can take over the same job. (Before the revision, another dispatched worker was not permitted to take over after three years.)
Employment termination after three yearsIndefinitely employed (regularly employed) dispatched workers may perform the same job for an unlimited period. However, fixed-term (registered) employees are limited to a maximum of three years. (Before the revision, there was no time limit even for fixed-term employees if they were in the 26 specialized occupations.)
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