Abstract
This chapter discusses the economic impact of the employment law of Japan for large and small firms. It describes in detail the settlement process when employers and employees do not agree on the termination condition. It also advocates statutory monetary compensation because, in small firms, the cost to obtain legal protection from dismissal is high relative to the workers’ income. Therefore, the introduction of severance payment rule would increase mobility in the labor market. It may even contribute to the removal of mandatory retirement, a practice still legal in Japan.
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Ministry of Health Labour and Welfare (MHLW), Labor Force Survey in 2017
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This is for connecting with the scheduled increase in the public pension eligibility age of 65 by 2025.
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In Germany, the compulsory notification period is 7 month for those who worked more than 20 years in the firm.
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For detail, see Ouchi (2015).
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The mandatory retirement age was raised from age 55–60 by revision of the Act on Stabilizing the Elderly Employment in 1986.
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The data are based on National Personnel Authority’s Survey on Private firms’ Retirement Benefits in 2011.
- 8.
The maximum benefit per day is 7775 yen in 2014 and the maximum days of receiving the benefits are 330, resulting in 2.6 million yen.
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Yashiro, N. (2018). Dismissal Compensation and Labor Mobility in Japan. In: Hatta, T., Ouchi, S. (eds) Severance Payment and Labor Mobility. Economics, Law, and Institutions in Asia Pacific. Springer, Singapore. https://doi.org/10.1007/978-981-13-2149-8_2
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DOI: https://doi.org/10.1007/978-981-13-2149-8_2
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