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The reform of the labour contract act in Japan last year could increase job insecurity, the Japan Times writes. The changes to the law are due to come into force at the start of next month and sets out that workers employed on fixed-term contracts for five years must be given indefinite employment should they ask for it.
But the paper writes that vast disparities between fixed-term and permanent employees still exist, with the firmer usually receiving lower pay, fewer opportunities for promotion and next to no salary increases or bonuses.
While the labour reform aimed to relieve worries of fixed-term worker, employers are bludgeoning the reform. “Far from increasing job security, companies are scrambling to set up mechanisms to kick out their workers before five years elapses. Employers are citing the new law to justify three-year limits on renewals, and even no renewals at all,” the paper writes.