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The Japanese Ministry of Health, Labour, and Welfare has announced a revision of labor standards, specifically addressing the criteria for determining who qualifies as a “worker” under the Labor Standards Act. This revision comes after 40 years, in response to the rapid rise of gig workers—individuals engaged in short-term, flexible jobs, such as delivery services, which have been increasing in popularity. Critics argue that current protections for gig workers are insufficient, and this move aims to strengthen those safeguards.
By classifying gig workers as formal employees, they would be entitled to more robust protections, such as guaranteed wages, limited working hours, and health management benefits. A new study group composed of nine labor law experts has been set up to analyze this issue. At the group’s inaugural meeting, members discussed the global legal landscape for platform workers, with suggestions that Japan should examine international rulings on the matter.
The current classification system, introduced in 1985, has primarily focused on cases where businesses directly supervise employees, or where workers receive compensation in exchange for labor. This system was established at a time when the workforce mainly consisted of truck drivers, independent contractors, and those working from home using word processors. However, with the advent of the internet and the rise of platforms utilizing artificial intelligence (AI) to assign tasks, such as gig workers in delivery services, the criteria for classifying workers have become outdated and insufficient for today’s reality.
The new research group is expected to debate whether a worker’s economic dependence on a company or a power imbalance in labor negotiations should be part of the criteria for determining whether they are considered an employee under the law. One of the key issues is whether companies should bear the burden of proving that someone is not an employee under the Labor Standards Act.
If gig workers are recognized as employees, they would be entitled to protections such as working hours limits, a guaranteed minimum wage, access to regular health checks, and eligibility for unemployment and educational training benefits through employment insurance. Some previous reports have raised concerns about businesses exploiting loopholes by treating workers as contractors in order to evade social security obligations and other employer responsibilities.
Disputes over whether gig workers are legally considered employees have become more common. For instance, in 2019, a labor union of delivery workers for Uber Eats requested collective bargaining with the company. The Tokyo Labor Relations Commission ruled that Uber Eats delivery workers should be classified as employees under labor law. Similarly, Amazon Japan drivers made a similar demand for union recognition.
According to the Ministry of Internal Affairs and Communications’ 2022 Employment Structure Survey, around 2.09 million people, or 3.1% of Japan’s workforce, are freelance workers, including gig workers.
Meanwhile, the movement to classify gig workers as employees is gaining traction internationally. The European Union’s European Commission adopted a new directive in October 2024, proposing that if a company controls or directs the work of an individual, they should be presumed to be an employee. In the U.S., California has introduced stricter requirements for recognizing independent contractors under state law. Additionally, the International Labour Organization (ILO) is set to discuss the issue at its upcoming June conference.
What Undercode Says:
The current review of labor standards is long overdue, especially as the nature of work continues to evolve with the proliferation of gig economy jobs. Many workers, particularly in the delivery and transportation sectors, are increasingly dependent on platforms that set working conditions, making it clear that current definitions of “employee” no longer align with modern working realities.
By recognizing gig workers as employees, Japan could not only bring fairness to the table but also ensure that these workers receive the same level of protection as traditional employees. This includes crucial rights such as fixed wages, safe working conditions, and access to social security benefits.
The move also highlights the need for a global conversation on gig work. Platforms like Uber, Amazon, and others have transformed the workforce into a more fluid and less predictable environment. While such flexibility is beneficial for some, it also creates a situation where workers have less job security and fewer benefits than traditional employees. Thus, broadening the scope of worker protections to include those in non-traditional employment arrangements is necessary, not just for ethical reasons but also to maintain fairness in the labor market.
Additionally, the trend towards classifying gig workers as employees is not unique to Japan. Countries around the world, including the European Union and the U.S., have begun to implement policies to provide greater protections to this growing workforce. Japan’s revision of labor standards is thus part of a larger, global trend aimed at ensuring that new forms of work are covered under legal frameworks designed to protect workers’ rights.
Fact Checker Results:
Global Perspective: Many countries have already made strides in addressing gig worker protections, such as the European Union’s new directive and California’s updated contractor laws. Japan is following a similar path.
Worker Protection: If Japan includes gig workers in the definition of “employee,” they will gain access to significant labor protections, which are not currently guaranteed under existing gig economy frameworks.
Platform Accountability: The move also calls for greater corporate responsibility, shifting the burden of proof to employers who treat workers as contractors rather than employees.
Prediction:
Japan’s decision to reconsider labor standards and protections for gig workers signals a broader shift toward greater inclusion and regulation of non-traditional labor. As the gig economy continues to expand, other nations may follow suit, ultimately leading to more uniform labor protections for workers across the globe. The increasing recognition of gig workers as formal employees could redefine the future of work, with lasting impacts on how companies structure their workforce and how workers demand better conditions in an increasingly automated and platform-driven world.
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Reported By: xtechnikkeicom_5f5e8100c104cc04b99146d5
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