"Employees with Children Must Work from Home"…Japanese Companies Anticipate Mandatory Low Birthrate Measures

Submission of Parental Leave Act Amendment to Regular National Assembly
Option to Choose Work Method Until Child's Elementary School Completion

The Japanese government has announced a revision to the Childcare Leave Act, which mandates companies to require employees who are parents of young children to work from home. If the bill passes, Japanese companies will be required to guarantee that employees with children under the age of three can freely work from home if they wish.

As labor shortages caused by the shock of low birthrates and an aging population have already begun to affect society as a whole, the Japanese government is expected to demand more workplace environment improvements from companies in the future.

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On the 27th, Asahi Shimbun reported that the Ministry of Health, Labour and Welfare's council reached a final agreement the previous day on the revision of the Childcare and Nursing Care Leave Act to support work-family balance. The revision centers on mandating work-from-home for employees with children under three years old. The council plans to submit the bill to the regular Diet session next year and implement it immediately.

According to the revision, Japanese companies will be required to establish systems and environments that unconditionally allow employees with children under three years old to work from home if they wish. This will be specified as a corporate obligation to make efforts.

Even for children aged three and above, employees who are parents of preschool children before entering elementary school will be able to choose their working style according to their wishes. Companies must prepare at least two systems such as flexible working hours, work-from-home, or shortened working hours, and employees must be able to choose one of these to work. Additionally, the existing exemption from overtime work, which could previously only be requested if the child was under three years old, will be extended until the child enters elementary school.

The Ministry of Health, Labour and Welfare will also further encourage the use of childcare leave. Currently, companies with more than 1,000 employees are required to disclose the rate of childcare leave usage within the company. The ministry plans to change this criterion to companies with more than 300 employees. According to Nihon Keizai Shimbun (Nikkei), the number of companies required to disclose childcare leave usage rates will increase more than fourfold from the current 4,000 to 18,000.