Extra wages
When an employer makes a worker work longer than the legal working hours
(Refer to our Working Hours web site), the employer must pay extra wages
calculated on the overtime hours worked. This also applies to overstayed
foreigners and technical interns.
Extra wages are as follows:
Overtime labor (any work done in excess of 8 hours a day and 40 hours a week) is 25% over the ordinary wage.
Work on a day-off is 35% over the ordinary wage.
Late-night work (any work done after 10:00 p.m. or before 5:00 a.m.) is 25% over the ordinary wage.
Late-night overtime is 50% over the ordinary wage.
Late-night work on a holiday is 60% over the ordinary wage.
The overtime work compensation rate was partly amended on April 1st,
2010. Before the amendment, 125% of the regular wage was the rate
applicable to overtime work (“8 hours a day” and “40 hours a week”). Furthermore,
under the amendment on April 1st, 2010, a certain number of major companies
must pay at least 150% of the regular wage for overtime work in excess of
60 hours per month.
Regarding the detailed calculation method of extra wages described above,
please consult us because it is complicated to calculate.
Unpaid extra wages
Actually, there are many unpaid extra wages cases. There seems to be bad
cases in the case of foreign workers in particular.
Regarding representative cases where extra wages are not paid, there is
"unpaid overtime" where no wage is paid at all even if a worker works longer
than the legal working hours. In addition, there are cases where insufficient
extra wages are paid by a wrong calculation method even if extra wages are
paid. There are also cases where less wages than the ordinary wage are paid
by manipulating a calculation.
Demand for extra wages
In the event that constitutionally-imposed extra wages are not paid, you
can demand the company for payment of the unpaid wages. As described in
our Extra Wages web site, the statute of limitations on unpaid extra wages
is two years.
Regarding how to demand the unpaid extra wages, you can consult the nearest
labor standards office, the labor union of the company or the local labor
union near you to seek redress for it. However, the labor standards office
or the labor union is not sometimes eager to find a solution. Thus, there
is another way that you can consult a professional. You can contact us for
consultation for the unpaid extra wages as well.
If the company pays the extra wages without much resistance, it causes no
troubles. But if not, there are times you may need to start a lawsuit. You
may be concerned that you will be dismissed from the company due to a lawsuit
or that a lawsuit would take a long time. However, even if you start a lawsuit,
the company is not permitted to dismiss you. There is also a kind of lawsuit
called a “labor trial”, which takes a comparatively shorter time.
When you
demand extra wages in trial, there are times the court orders the company
to pay a “cash rebate”, which is the same amount as the unpaid extra wages,
in addition to the unpaid wages.