Japan’s National Personnel Authority to Relax Ban on Civil Servant Side Jobs from April Next Year
Strict Restrictions on For-Profit Activities to Be Significantly Eased
Civil Servants Allowed to Pursue Hobbies, Special Skills, and Social Contributions Outside Working Hours
The Japanese government has relaxed its regulations on side jobs in an effort to prevent Millennials & Gen Z civil servants from leaving their positions. Starting in April next year, civil servants will be allowed to engage in self-employment based on their personal hobbies or skills. The aim is to retain and attract talent by allowing individuals to turn their hobbies into professions, as long as it does not interfere with their primary work duties.
According to a report by the Nihon Keizai Shimbun and an announcement by Japan’s National Personnel Authority on December 19 (local time), examples of permitted side jobs for civil servants include selling handmade crafts and opening sports or arts-related classes. Businesses that contribute to society, such as organizing local revitalization events or providing shopping assistance for the elderly, are also included. Civil servants wishing to take on side jobs must submit a business registration form and a business plan.
Examples include selling handmade crafts, opening sports classes, and organizing local events
Each ministry will approve side jobs only if they do not interfere with regular civil service duties and do not undermine public trust in government employees.
A side job refers to work or a position taken on in addition to one’s main duties. Until now, side jobs permitted for national civil servants were limited to three areas: real estate leasing, succession of family businesses under special circumstances, and selling electricity generated from solar power. Employment at for-profit companies has generally been prohibited, and only certain activities with nonprofit organizations or traditional forms of self-employment have been exceptionally approved. The latest relaxation significantly expands the scope of this “self-employment.” The three principles for approval are: absence of conflicts of interest (no special relationship between the employee’s official duties and the side business, such as permits, subsidies, or contracts); no interference with job performance (the side job does not affect one’s main work due to working hours or physical/mental fatigue); and prevention of reputational damage (the side job does not undermine the dignity of public service).
Permitted if it does not interfere with civil service work and is within 3 hours per day
The new relaxation only applies to businesses that utilize the individual’s own knowledge or skills, or contribute to society. Therefore, reselling (buying products cheaply and selling them at a higher price without adding value), standardized app-based side jobs (offering standardized services as an individual via apps), and businesses managed by employees other than the civil servant (such as selling products exclusively made by staff, without using the civil servant’s own knowledge or skills) are prohibited.
As a rule, civil servants’ main work must be within “8 hours per week” or “30 hours per month.” If a side job is performed on a workday, it must be limited to “within 3 hours per day” outside of official working hours. Exceeding this limit is considered likely to cause fatigue and interfere with primary work duties. Taking paid leave to engage in side jobs is also not recognized as acceptable and will not be approved.
4 out of 10 civil servants in their 20s and 30s want side jobs... Hopes to prevent Millennials & Gen Z exodus
In February, the National Personnel Authority conducted a survey on side job intentions among about 2,000 national civil servants. Only 6.2% had experience with side jobs under the current system. However, 32.9% expressed a desire to have a side job, with higher rates among those in their 20s (39.9%) and 30s (40.8%).
The reasons for wanting a side job (multiple responses allowed) included acquiring knowledge, skills, and networks not available through their main work (54.7%), utilizing personal hobbies and talents (51.7%), earning compensation for use of free time (39.5%), and solving social or community issues (32.5%).
The National Personnel Authority also reported, based on interviews with private companies, that allowing side jobs has had a positive effect on recruitment and has helped prevent resignations and employee turnover.
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