Learn in the textbookLabor-Related Laws and Regulations
DefinitionThe Labor Contract Act (労働契約法) sets the basic rules for how a labor contract between a worker and an employer is formed, changed and ended.
ExplanationA labor contract rests on the principle of agreement: the worker and the employer form and change it by agreeing as equals. A dismissal that lacks an objectively reasonable cause and is not seen as appropriate by general social standards is void as an abuse of rights. The Act also sets the conversion rule: once a fixed-term contract has been renewed past a combined 5 years, the worker can apply to switch to a contract with no fixed term.
Memory hookAs the word "contract" in the name suggests, think of it as special rules that apply civil-law contract thinking to the relationship between employer and employee.