Japan eases overtime limits to combat labor shortages

Japan has implemented a policy change that eases overtime restrictions for certain companies, a move intended to stimulate economic growth and address labor shortages in sectors like construction, transport, and hospitality. Starting September 1, labor standards inspection offices will no longer issue uniform administrative guidance requiring companies to cap monthly overtime at 45 hours, even for those with special labor-management agreements that legally allow up to 100 hours.

The Ministry of Health, Labour and Welfare stated that while the 45-hour threshold was previously used to mitigate the risk of ‘karoshi’ (death from overwork), inspectors will now focus on ensuring companies implement necessary health protection measures rather than enforcing the specific hour cap. This change does not apply to all businesses; companies without special labor-management agreements must still adhere to the 45-hour monthly limit.

The policy has drawn sharp criticism from labor groups, including the National Confederation of Trade Unions (Zenroren), which described the shift as an ‘unacceptable’ reversal of efforts to reduce working hours. Critics express concern that the move signals a return to Japan’s ingrained workaholic culture, potentially undoing progress made toward work-life balance following high-profile incidents of overwork-related deaths.