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Compliance
Japan’s Labor Standards Act governs statutory leave entitlements for employees. Here's a comprehensive overview:
Annual leave is valid for 2 years from the date of accrual. Unused leave lapses if not used within this period. Employers must track usage and enforce the mandatory 5-day usage rule annually.
Non-compliance can result in fines up to JPY 300,000. Employers failing to enforce leave usage may face labor inspections or lawsuits. Record-keeping is mandatory for audits.
Public Holidays
Japan observes 16 national holidays, including Golden Week and Emperor’s Birthday. There is no statutory requirement to pay extra on public holidays, but most employers grant time off. Substitution is common if holidays fall on weekends.
AYP supports leave policy enforcement in Japan by ensuring leave is tracked accurately, helping clients meet mandatory usage rules, and advising on employer-provided sick leave practices to remain competitive.
Need local HR support in Japan? Contact AYP for seamless leave tracking and compliance under Japan’s labor laws.