On December 25, DPJ Non-Regular Employment Measures Project Team Leader Ritsuo Hosokawa, made the following comment:

It has been reported that notice of termination given to fixed-term employees of a large automobile manufacturer during a fixed-term labor contract has been rescinded. This is a significant step forward if guarantees are provided for the payment of wages, etc. for the remaining term of the contract in line with the purport of Article 17 (*) of the Labor Contract Law, as noted in DPJ's "Comment Following the Unacceptable Practice of Premature Contract Terminations For Fixed-Term Employees", dated December 4, 2008.

However, it appears that this rescinding of the termination notice does not include the dispatched workers to the company. The Labor Contract Law applies to all persons in the employ of an employer who are paid wages, and it is therefore grossly unfair if a situation exists where Article 17 of the Labor Contract Law does not apply to dispatched workers that are employed by the dispatching company. If the payment of wages for the remaining term of the contract is not guaranteed by the dispatching company, it is against the purport of Article 17 of the Labor Contract law and cannot be accepted.

It must be stressed once again that the term of a Fixed-Term Labor Contract, irrespective of whether the employment is direct or indirect, is concluded with the agreement of both the employer and the worker, is binding and is to be strictly observed by both parties to the contract. It is natural for dispatched workers to expect their dispatching company to guarantee their employment during the term of the contract. Although individual circumstances may exist, dispatching companies still cannot claim that a premature termination by the client or the business to which the workers are dispatched automatically qualifies as an "unavoidable reason" for them to terminate the employment of their dispatch personnel.

It is believed that majority of dispatched workers are employed under Fixed-Term Labor Contracts with the dispatching company. In case they are notified of a premature termination during the term of the labor contract, they should question the dispatching company about the "unavoidable reason," and if a satisfactory answer is not obtained, take a firm stand on their rights including the payment of wages for the remaining term of the contract and even seek legal action. Many dispatched workers are deprived of jobs and a place to live, and are left with nowhere to go. We ask that the government offices provide better services, including information and counseling facilities at Hello Work [Job Consultation Office] and the Labor Standards Supervision Office, over the New Year holidays.

* Regarding the employment of workers on fixed-term contracts (contract workers), Article 17 Clause 1 of the Labor Contract Law states that the employer (the dispatching company in the case of contract workers) who cancels the contract bears responsibility for proving that such an "unavoidable reason" exists.

Article 17
Employers may not terminate their employment until their contract period has expired, except where there is an "unavoidable reason".