The number of atypical workers, including part-time employees, indirectly employed workers, dispatched agency workers, and workers on fixed-term contracts is growing. A Labour Force Survey conducted by the Ministry of Internal Affairs and Communications found that 35,3% of Japanese employees were non-regular workers in the period between July and September 2011.
Inadequate legal protection of these workers has spurred the development. The law stipulates that fixed-term contracts can be concluded for up to three or five years – depending on the worker’s skill level – but there are no other legal provisions regulating the use of these contracts. The increased use of atypical workers undermines regular employment and makes union organising difficult. In the manufacturing sector in particular, disguised contract labour also has negative implications for working conditions and the health and safety of workers. The practice of undertaking business through holding companies and investment funds, both of which are not recognised as employers under Japanese law, has also caused significant difficulties for trade unions seeking to bargain collectively in such companies.