Japan Ends 45-Hour Overtime Cap in September, Allowing Up to 100 Hours Monthly

Japan’s Ministry of Health, Labour and Welfare will stop uniformly capping monthly overtime at 45 hours starting September. Companies with special labor-management agreements (Article 36 agreements with special clauses) can now effectively allow employees to work up to 100 hours per month, including holidays. The change follows pressure from business groups and aligns with Prime Minister Sanae Takaichi’s deregulation agenda, though labor advocates worry it weakens work-style reforms enacted in 2019.

What the new overtime rules allow

Under Japan’s Labor Standards Law, the standard workweek is 40 hours. Employers and workers can sign an Article 36 agreement to permit up to 45 hours of overtime monthly. If they add a special clause, overtime can reach just under 100 hours per month, including holiday work. Until now, labor inspectors urged all companies, even those with special clauses, to keep overtime below 45 hours. Starting September, inspectors will stop this uniform guidance and instead focus on whether employers implement health protections for workers.

Why business groups pushed for the change

The Japan Business Federation (Keidanren) and other business groups argued that uniform 45-hour caps discourage corporate activity and constrain workforce flexibility. According to the ministry, about 50% of companies have Article 36 agreements, and roughly 70% of those include special clauses. The change reflects months of lobbying and Prime Minister Takaichi’s stated intent to ease labor regulations since taking office.

Health protections remain a requirement

The ministry attached a condition: companies with special clauses allowing up to 100 hours of monthly overtime must still implement measures to protect workers’ health. Labor inspectors will shift focus to checking whether employers conduct medical examinations and other health safeguards. A ministry official stated the goal is not to encourage overwork but to prevent illegal long hours while allowing flexibility when labor and management agree it is necessary. The policy does not change Japan’s legal overtime limits, only how inspectors enforce them.

Concerns about work-style reform rollback

Japan’s work-style reform law, which took effect in April 2019, imposed the first legally binding overtime caps after decades of effectively unlimited hours in many workplaces. Labor advocates worry the new guidance sets back those reforms and weakens employer incentives to reduce overtime. The ministry denies the change encourages overwork, but critics note that removing uniform caps may signal acceptance of near-100-hour months if health measures are in place.

Final Thoughts

Japan’s shift removes a uniform brake on overtime but keeps legal limits and health checks in place. The move reflects business pressure and deregulation priorities, though it risks eroding work-style protections won in 2019.

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