Recent Amendments to Japanese Employment Laws:
Key Practical Considerations

Pursuant to amendments to the “Act on the Comprehensive Promotion of Labor Measures, the Stabilization of Employment, and the Enrichment of Working Life” (hereinafter referred to as the “Comprehensive Promotion of Labor Measures Act”) and the “Act on Securing Equal Opportunities and Treatment for Men and Women in the Field of Employment” (hereinafter referred to as the “Equal Employment Opportunity Act”), companies will be required to implement necessary employment management measures regarding so-called “customer harassment” (kasuhara in Japanese) and sexual harassment during job hunting, effective October 1, 2026.

In addition, the amended “Guidelines on the Prohibition of Unreasonable Treatment of Part-Time, Fixed-Term, and Temporary Agency Workers” ¹(hereinafter referred to as the “Equal Pay for Equal Work Guidelines”) will also come into effect on the same date.

Furthermore, with the expiration of the transitional measures under the “Enforcement Order of the Act on the Promotion of Employment of Persons with Disabilities”, the statutory employment rate for persons with disabilities at private-sector companies has been raised effective July 1, 2026.

This newsletter provides an overview of these amendments and key practical considerations.

Effective October 1, 2026, employers will be required to implement necessary employment management measures to prevent customer harassment². The specific measures employers must take are outlined in the “Guidelines on Measures Employers Should Take in Employment Management Regarding Problems Arising from the Words and Actions of Customers and Others in the Workplace”³ (hereinafter referred to as the “Customer Harassment Prevention Guidelines”).

Under the amended Comprehensive Promotion of Labor Measures Act, “customer harassment” is defined as acts or remarks occurring in the workplace that satisfy all of the following elements (i) through (iii)⁴. Specific examples of conduct that fall under this definition are listed in Section 2 of the Customer Harassment Prevention Guidelines.
 

As part of their employment management practices, employers must take the following measures ((i) to (v)) without fail:⁵
 

To appropriately implement the employment management measures outlined in Section 2 above, it is essential to establish appropriate content in policies and manuals regarding the handling of customer harassment, as referred to in Section 2(i) above. In doing so, the content must take into account not only the unique nature of customer harassment—such as the need to deal with individuals outside the company and the necessity to balance this with other legal obligations, including service provision obligations under relevant industry laws—but also the specific characteristics of each industry and business type.

It is also important to establish a system that enables a swift and appropriate response when individual cases arise by formulating these measures as early as possible, informing employees of their contents, and conducting training as necessary.

It is also important to note that, since measures specific to customer harassment—such as those outlined in Section 2(iv) above—are required, simply implementing measures similar to those for workplace harassment may not be sufficient.

Effective October 1, 2026, employers will be required to take necessary employment management measures to prevent sexual harassment during job hunting⁶. The specific measures employers must take are outlined in the “Guidelines on Employment Management Measures to Be Taken by Employers Regarding Issues Arising from Sexual Conduct During Job Hunting and Related Activities” (hereinafter referred to as the “Guidelines for Preventing Sexual Harassment During Job Hunting”).

Under the amended Equal Employment Opportunity Act and the Guidelines for Preventing Sexual Harassment During Job Hunting, sexual harassment during job hunting is defined as a situation in which the job search activities of job applicants (e.g., students seeking employment, interns, and trainees) are hindered by sexual conduct or remarks made by workers employed by the employer⁷.

Employers must take the following measures (i) through (iv) as part of their employment management practices⁸.
 

To appropriately implement the employment management measures described in Section 2 above, it is essential—just as with workplace harassment—to establish appropriate policies and manuals for addressing job-hunting sexual harassment as one of the items listed in Section 2(i), to ensure that employees are made aware of their contents, and to establish a system capable of responding appropriately when individual cases arise.

Furthermore, while the content of measures regarding sexual harassment during job hunting may overlap in some areas with measures for other forms of sexual harassment, it is important to note that simply implementing the same measures as those for non-job-hunting-related sexual harassment may be insufficient. This is because specific measures unique to sexual harassment during job hunting—such as establishing rules regarding job-hunting activities (see 2(i) above) and publicizing consultation services for job applicants and others (see 2(ii) above)—are also necessary, given that job applicants and others are external to the company. Therefore, it is important to note that simply implementing the same measures as those for harassment other than job-hunting harassment may not be sufficient.

In light of the above, companies are recommended to review their internal policies and procedures by October 1, 2026, regarding both customer harassment and job-hunting sexual harassment, including: (a) reviewing employment rules and harassment prevention regulations; (b) formulating or revising response manuals; (c) establishing and publicizing consultation channels; and (d) planning training for managers, consultation staff, and HR interviewers.

The so-called “Equal Pay for Equal Work Guidelines” have been revised to include explanations of the underlying principles regarding what constitutes an unreasonable disparity in treatment between regular and non-regular employees with respect to the following benefits.
 

In addition to provisions regarding specific terms of employment, provisions have been added concerning the elimination of unreasonable disparities in treatment between regular and non-regular employees, including the following points.
 

The recent revisions to the “Equal Pay for Equal Work” guidelines primarily reflect the principles set forth in recent Supreme Court rulings and other decisions, and do not represent a significant change from the previous criteria.However, it is expected that, from October 1, 2026, administrative guidance and other measures will be based on the content of the revised guidelines. Furthermore, it is anticipated that these guidelines will be referenced by courts when interpreting laws and regulations in lawsuits and other proceedings where disparities in treatment between regular and non-regular employees are contested. Therefore, for each benefit listed in the table in Section 1 above, companies must verify whether their internal systems align with the content of the revised “Equal Pay for Equal Work” Guidelines and make revisions as necessary. In doing so, it is important to first confirm the nature and purpose of each benefit based on your company’s actual circumstances, and then to conduct a verification by considering the differences between your company’s regular and non-regular employees in terms of: (i) job content (scope of duties, level of responsibility); (ii) personnel management mechanisms (scope of changes to job content or assignments); and (iii) other circumstances (see Section 1 above).

Furthermore, even if a company determines that it will not eliminate the disparity in treatment between regular and non-regular employees at this time, it is advisable to thoroughly document the reasons and circumstances underlying the disparity—such as the basis for maintaining different treatment compared with regular employees—and to be prepared to explain the reasons for any differences in treatment if requested by non-regular employees¹².

With the expiration of the transitional measures regarding the statutory employment rate for persons with disabilities under the “Act on the Promotion of Employment of Persons with Disabilities”, the statutory employment rate for persons with disabilities in private-sector companies has been raised from 2.5% to 2.7% effective July 1, 2026¹³. As a result, employers with 37.5 or more employees are required to employ at least one person with a disability.

As before, employers with more than 100 regular employees who fail to meet the statutory employment rate must pay a disability employment levy of 50,000 yen per month for each person short of the required number¹⁴. Furthermore, employers with low employment rates for persons with disabilities may be subject to administrative guidance aimed at achieving the statutory employment rate; they may also be ordered by the authorities to create a plan for hiring persons with disabilities, or receive recommendations regarding changes to such plans or their proper implementation¹⁵. Furthermore, if a company fails to comply with a recommendation without just cause, there is a risk that its name will be made public¹⁶.

In order to achieve and maintain the statutory employment rate following its increase, it is necessary to develop or update a medium- to long-term recruitment plan for persons with disabilities. In doing so, it is advisable not only to establish a recruitment schedule but also to consider measures to ensure the retention of persons with disabilities in the workplace—such as selecting job duties suited to the nature of their disabilities, adjusting job postings, conducting post-hire interviews, providing reasonable accommodations, and establishing systems to promote the use of telework.

Furthermore, companies that meet certain conditions are subject to a duty to make efforts to appoint an “Employment Promotion Officer for Persons with Disabilities” (a designated internal coordinator under Japanese law) to promote and sustain the employment of persons with disabilities¹⁷. Since a certain level of knowledge is required to properly utilize the increasingly complex subsidy programs related to the employment of persons with disabilities, and appointing a designated person is also considered useful from the perspective of establishing internal systems, proceeding with preparations in this regard is one option to consider.