"Parents with Children Under 3 to Be Required to Work from Home" Japan Considering Drastic Measures for Low Birthrate

Special Measures for Work-Family Balance
Combination of Reduced Hours, Remote Work, and Overtime Exemption
Concerns over Remote Work Costs and Productivity Decline

The Japanese Ministry of Health, Labour and Welfare is reportedly considering a system that would mandate telecommuting for employees with children under the age of three, drawing attention both inside and outside Japan. As the Japanese government acknowledges the seriousness of the low birthrate issue and is expected to strongly push forward policies supporting work-family balance, small and medium-sized enterprises without proper telecommuting systems are expressing reluctance.

According to the Nihon Keizai Shimbun (Nikkei) on the 16th, the Ministry of Health, Labour and Welfare is planning a bill that would require companies to allow telecommuting for employees with children under the age of three. This bill is known as a follow-up measure that emerged after Prime Minister Fumio Kishida previously ordered a significantly stronger countermeasure against the low birthrate. In a press conference last March, Kishida strongly urged, "We must change the way we work by utilizing telework (telecommuting), among other methods."

Previously in Japan, as a support measure for work-family balance, parents raising children under the age of three were mandated to be allowed a shortened work schedule of six hours per day at their workplace. The Japanese government expects that adding telecommuting to this will significantly increase childcare time. Nikkei analyzed, "If telecommuting through online means spreads, workers in urban areas will be able to save commuting time, making it easier to secure childcare time."

The exemption from overtime work guaranteed to parents until their child turns three will also be significantly extended until before elementary school enrollment. The Japanese government announced plans to continue revising related laws next year to increase childcare and nursing care leave.

This measure appears to have become possible as telecommuting has started to gain attention even in conservative Japanese workplaces. Japanese companies traditionally emphasize face-to-face work and commuting, but telecommuting has naturally been accepted as another form of working style following the COVID-19 pandemic. According to a survey by the Ministry of Land, Infrastructure, Transport and Tourism, the proportion of employed persons who answered "the company has a telecommuting system" was 37.6% in 2022, a significant increase from 19.6% in 2019. Among those working at companies where telecommuting is not allowed, 67% responded that they would like to telecommute.

Before the government moves to adopt this trend, some large companies have already implemented telecommuting for parents. Itochu Corporation, known as a company Japanese university students want to work for, in principle allows telecommuting up to twice a week for reasons such as pregnancy or childcare. This can be increased at discretion, but employees must come to the office at least once a week for internal communication.

However, there are also concerns that uniform implementation will be difficult. For small and medium-sized enterprises rather than large companies, it is highly likely that they will not be able to find workers to cover the work gaps caused by exemption from overtime or reduced working hours. Because of this, the proportion of telecommuting workers generally inversely correlates with company size. According to the Ministry of Land, Infrastructure, Transport and Tourism survey, as of last year, the telecommuting rate was 36.7% for companies with 1,000 or more employees, but only 22.7% for companies with 100 to 299 employees, and 17.5% for companies with 20 to 99 employees, showing a clear difference.

Industries requiring face-to-face work such as service industries, caregiving and childcare-related sectors, and medical industries also find it difficult to introduce telecommuting. Therefore, the Ministry of Health, Labour and Welfare has urged the use of flexible working systems if telecommuting is difficult.

Nikkei analyzed that companies implementing such systems will ultimately survive. Nikkei stated, "Telecommuting and childcare leave are personal choices, but companies that delay introducing related systems are likely to be overlooked by people who want flexible working styles," adding, "Even if childcare leave spreads, if time for childcare after returning to work is not guaranteed, people will not have second or third children."