The labor laws in Japan make it extremely difficult to terminate employees, and many laid-off employees are able to successfully argue wrongful termination. When they prevail on such a claim, they are entitled to backpay as well as reinstatement in their previous position. This can be costly for companies and engender mistrust among other employees, who fear they may be the target of future layoffs.
In almost all cases, it is better for a company to try to reach an amicable arrangement for separation rather than unilaterally fire an employee. If your company is considering a workforce reduction, please contact us for information about how we can help guide you through the process.
* Jackson Sogo (www.jacksonsogo.com) is a Japanese gyoseishoshi law office offering a wide range of Japanese corporate, immigration, employment, labor, and family law services to clients in native English. This article is provided for informational purposes only and does not constitute legal advice. Copyright Jackson Sogo. All rights reserved.