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Japanese Business Culture Blog

A blog about communications between Japan and other cultures, particularly in business.



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Helping Japanese companies with UK employment law
Pernille Rudlin
Sep 09, 2009 07:41 AM
It's tough for smaller Japanese companies in the UK to keep up with the constant changes to employment law.  That's why we've launched our new HR outsourcing service.

The service will include biannual updates on key legal changes, and recommendations as to how to change employee handbooks, offer letters, contracts and so on accordingly.

This October, for example, the national minimum wage will increase again, which is critical to know, for any Japanese company who has employees in the UK following "traditional" Japanese overtime habits of staying in the office until late every day.

UK overtime rules are not as obvious as in Japan, where union, non-management staff are paid overtime, and non-union team leader/kacho management levels and above are not paid overtime.  In the UK, whether overtime is paid or not should be made clear in the contract and it is common for managerial staff to be asked to sign an opt out letter, declaring that they agree to work more than the 48 hours per work specified in the EU Working Time Directive.

Nonetheless, Japanese companies must make sure that the average hourly rate being paid their UK staff, including all overtime, does not go below the national minimum wage.

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