Suggestion: Provide exemptions from certain provisions of the Labor Standards Act for defined professional and administrative personnel.
Article 84-1, Paragraph 1, Subparagraphs 1 and 3 of the Labor Standards Act (LSA) provide that supervisory or administrative personnel, professionals with designated responsibilities, and other personnel with jobs of a special nature are not subject to the restrictions on work time and overtime compensation set forth in Articles 30, etc. of the Act.
However, as application of this exclusion has always been narrowly interpreted by the labor authority, the provision cannot meet the desire for flexible work time by many workers in a modern knowledge-based economy. We therefore propose that the Ministry of Labor (MOL) stipulate in the enforcement rules for the LSA that employees satisfying any of the following conditions may be deemed employees covered by Article 84-1:
Employees whose wages are at least twice the median for all those employed by the same employer, irrespective of the headcount of the employer, or
Employees whose wages rank in the top 15% of the total for all those employed by the same employer.
Employees whose job function focuses on their special skills or talents rather than the amount of time put in; whose job content is prepared, researched and developed, designed, and carried out by themselves or together with others; who are responsible solely or with others for the success or failure of their work; who are responsible for planning or adjusting the time, place, and number of personnel required for their work; and where difficulties are likely to occur, or efficacy impaired, if such employees are governed by Articles 30, etc. of the LSA.