Japan eases overtime oversight despite overwork fears

Japan eased overtime oversight on September 1, ending labour office pressure on some companies to keep monthly overtime at 45 hours despite criticism that the change weakens safeguards against overwork.

The government of Prime Minister Sanae Takaichi adopted a growth strategy in July calling for revisions to supervision of working hours. The change partly reflects calls from some business sectors for more flexible work styles during a labour shortage.

The labour ministry says about 40% of businesses in Japan operate under labour-management agreements that legally permit up to 100 hours of monthly overtime. Until now, authorities still advised those companies to cap overtime at 45 hours, guidance treated as comparable to regulation because exceeding that threshold can increase the risk of karoshi, or death from overwork, a labour ministry official said.

Under the new rule, labour standards inspection offices will no longer pressure businesses to follow the 45-hour cap. A May survey by the Japan Chamber of Commerce and Industry said that pressure was restricting activity at about 20% of small and mid-sized businesses, particularly in short-staffed industries such as construction, transport and hospitality.

The National Confederation of Trade Unions in Tokyo, known as Zenroren, called the move “an unacceptable shift away from, and abolition of, the policy that urged companies to shorten work hours.”

Takaichi has presented herself as highly work-focused, saying when elected head of her ruling party in October that she would “work, work, work, work and work”. She also wrote on X in July that she had been sleeping “zero to three hours” as prime minister.

The labour ministry said it would continue to provide guidance if there was a high risk that excessive work could cause health problems. It said companies without special labour-management agreements remain legally obliged to keep monthly overtime at 45 hours or less, while some companies are barred from requiring work beyond statutory hours.