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Change of Employment Status from Limited-Term to Open-Ended Term
Upcoming Deadline for Legal Compliance
Author: Aki Tanaka, Attorney — Littler Mendelson P.C.
As of April 1, 2018, employees on limited-term basis will gain the right to change their employment status to open-ended term after five years of employment with the same employer (per a law enacted in 2013). There are some exceptions for (i) professional employees working for limited-term project with high compensation, and (ii) elder employees who work after retirement age; however, the employers need to obtain the approval from the government by submitting the plan to employ them. As the approval process takes some time, employers who must comply with this new scheme, or who would like to apply for the applicable exemption, should plan ahead and move sooner rather than later.
