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 Contributio
The Japanese government has relaxed its regulations on side jobs in an effort to prevent the departure of Millennials & Gen Z public servants. Starting in April next year, civil servants will be allowed to have side businesses that utilize their personal hobbies or special skills. The aim is to retain talent by allowing individuals to turn their hobbies into professions, as long as it does not interfere with their official duties.
According to a report by Nihon Keizai Shimbun and an announcement by the National Personnel Authority of Japan on December 19 (local time), examples of permitted side jobs for public servants include selling handmade crafts and opening classes related to sports or the arts. Businesses that contribute to society, such as organizing local revitalization events or helping the elderly with grocery shopping, are also included. Civil servants who wish to pursue side jobs must submit a business registration form and prepare a business plan.
Examples include selling handmade crafts, running sports classes, and organizing local events
Each government ministry will grant approval for side jobs only if the requirements are met, such as ensuring that the work does not interfere with regular public service duties and that it does not undermine public trust.
Side jobs refer to work or positions in addition to one's primary duties. Until now, national public servants in Japan were only allowed to have side jobs in three areas: real estate rentals, family business succession under special circumstances, and selling electricity generated from solar power. In principle, working for for-profit companies was prohibited, and only activities with non-profit organizations or certain traditional forms of self-employment were exceptionally permitted. This relaxation significantly expands the scope of such self-employment. The three principles for approval are: absence of conflicts of interest (no special relationship, such as permits, subsidies, or contracts, between the employee’s official duties and the side business), no interference with primary duties (side work should not negatively impact main work hours or cause mental or physical fatigue), and prevention of reputational damage (the side job must not undermine the dignity of public service).
Permitted if it does not interfere with public service work and is within 3 hours per day
The relaxed rules only allow businesses that utilize the individual's 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 (providing standardized services as an individual by registering with an app), and businesses delegated to employees (selling goods made exclusively by employees without utilizing the public servant’s own knowledge or skills) are prohibited.
In principle, public service 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 likely to be considered detrimental to the main job due to mental or physical fatigue. Taking paid leave to engage in side jobs is also not considered acceptable and will not be approved, as it may interfere with official duties.
4 out of 10 public servants in their 20s and 30s want side jobs...Hopes to prevent Millennials & Gen Z departures
In a survey conducted by the National Personnel Authority in February of this year among about 2,000 national public servants, only 6.2% had experience with side jobs under the current system. However, 32.9% of respondents expressed a desire to have a side job, with high rates among those in their 20s and younger (39.9%) and those in their 30s (40.8%).
The reasons for wanting side jobs (multiple answers allowed) included acquiring knowledge, skills, and networks not available through their main job (54.7%), utilizing their hobbies and special skills (51.7%), earning additional income by making use of their free time (39.5%), and solving social or local issues (32.5%).
The National Personnel Authority also stated, based on interviews with private companies, that allowing side jobs has had a positive effect on recruitment and has helped prevent resignations and turnover.
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