Same Work Same Pay: A review of rulings

In the ordinary Diet session, important key legislation is not being deliberated but instead the abnormal situation continues, however we have compiled the recent case rulings around the “Same Job Same Pay” which is a large part of the collective bill that is yet to be passed, related to ways of working reform.

“Same Job Same Pay” has its foundation in Article 20 of the Labor Contract Act and Article 20 is also included in the law revisions however it is expected that the concept of Article 20 of the existing labor contract act will follow. Therefore, we have summarised recent rulings related to this Article 20 of the Labor Contracts Act, which we compiled below, can just be read as is.

Japan Post had disputes in the Tokyo, Osaka and Saga District courts, however each court considered each case independently and the rulings were not uniform, and hence they must be considered as separate cases and not summarized together. However, while the base salary difference was rejected, there were very strict rulings with regards to the allowances.

In addition, the ruling with regards to Nagasawa Transportation regarding the dispute over the decreasing of the base salary for those Rehired after Retirement, has been delayed for more than a year, but the Supreme Court is expected to rule by the summer with regards to this case.

Please see Article 20 of the Labor Contracts Act:
Article 20  (Prohibition of Unreasonable Labor Conditions by Providing a Fixed Term)
If a labor condition of a fixed-term labor contract for a Worker is different from the counterpart labor condition of another labor contract without a fixed term for another Worker with the same Employer due to the existence of a fixed term, it is not to be found unreasonable, considering the content of the duties of the Workers and the extent of responsibility accompanying the said duties (hereinafter referred to as the “content of duties” in this Article), the extent of changes in the content of duties and work locations, and other circumstances.

Thank you.