Employment Security Act


Published: 2007

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Employment Security Act

(Act No. 141 of November 30, 1947)

Chapter I General Provisions

(Purpose of the Act)

Article 1 The purpose of this Act is, together with the Employment

Countermeasures Act (Act No. 132 of 1966), to provide every person with an

opportunity to obtain a job conformed to his/her ability and meet the labor

needs of industry through the provision of employment placement businesses,

etc. by Public Employment Security Offices and other employment security

bodies serving the public, with the cooperation of related administrative

agencies and related organizations, and through ensuring the appropriate

operation of employment placement businesses etc. provided by persons other

than employment security bodies in consideration of the role to be fulfilled by

such persons in the appropriate and smooth adjustment of demand for and

supply of a labor force, thereby achieving security of employment and

contributing to the development of the economy and society.

(Freedom of Job Selection)

Article 2 Every person may freely choose any job, provided that it does not

conflict with the public welfare.

(Equal Treatment)

Article 3 No one shall be discriminated against in employment placement,

vocational guidance, or the like, by reason of race, nationality, creed, sex,

social status, family origin, previous profession, membership of a labor union,

etc.; provided, however, that this shall not apply in the case where the terms of

a collective agreement entered into between an employer and a labor union in

accordance with the Labor Union Act provide otherwise.

(Definitions)

Article 4 (1) The term "employment placement" as used in this Act means

receiving offers for posting job offerings and offers for registering as a job

seeker and extending services to establish employment relationships between

job offerers and job seekers.

(2) The term "free employment placement" as used in this Act means employment

placement conducted without receiving commissions or other compensation

under any name with regard to employment placement.

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(3) The term "fee-charging employment placement" as used in this Act means

employment placement other than free employment placement.

(4) The term "vocational guidance" as used in this Act means guidance provided

to those persons seeking to obtain jobs so as to facilitate choice of jobs

compatible with their capabilities and to increase their adaptability to those

jobs through practical training, courses, instructions, advice, the provision of

information and other methods.

(5) The term "labor recruitment" as used in this Act means that those who seek

to employ workers solicit, either directly or through a third party, those

seeking to become workers to become their employees.

(6) The term "labor supply" as used in this Act means having workers work under

the direction and orders of another person based upon a supply contract, and

does not include that which falls under worker dispatch provided in Article 2,

item 1 of the Act for Securing the Proper Operation of Worker Dispatching

Undertakings and Improved Working Conditions for Dispatched Workers (Act

No. 88 of 1985; hereinafter referred to as "Worker Dispatching Act").

(7) The term "employment placement business provider" as used in this Act

means a person who either obtains the license provided for in Article 30,

paragraph 1 or Article 33, paragraph 1 or files the notification pursuant to the

provisions of Article 33-2, paragraph 1, Article 33-3, paragraph 1, or Article 33-

4, paragraph 1 and provides employment placement businesses.

(8) The term "labor supply business provider" as used in this Act means a labor

union, etc. that conducts labor supply businesses pursuant to the provisions of

Article 45 (this means a labor union under the Labor Union Act or other entity

equivalent thereto and which is provided for by an Ordinance of the Ministry of

Health, Labour and Welfare; the same shall apply hereinafter).

(9) The term "personal information" as used in this Act means information

concerning an individual that can identify a specific individual (including

information that can identify a specific individual when collated with other

information).

(Businesses of the Government)

Article 5 The government shall undertake the following matters in order to

accomplish the purpose referred to in Article 1:

(i) to achieve an appropriate and smooth adjustment of demand for and supply

of the labor force;

(ii) to establish and make efforts to implement necessary policies to provide the

unemployed the opportunity to obtain jobs;

(iii) to provide free employment placement businesses to help job seekers in

promptly obtaining jobs compatible with their abilities, as well as to meet the

labor force needs of job offerers;

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(iv) to guide and supervise employment placement, recruitment of workers,

labor supply businesses, worker dispatch businesses provided in Article 2,

item 3 of the Worker Dispatching Act, and businesses for securing

employment opportunities for construction workers provided in Article 2,

paragraph 10 of the Act on Improvement, etc. of Employment of Construction

Workers (Act No. 33 of 1976; hereinafter referred to as "Construction Work

Act") (such activities shall be hereinafter referred to as "worker dispatch

businesses") operated by any person other than the government in such a

manner as to promote the interests of workers and the public;

(v) to provide job seekers with necessary vocational guidance;

(vi) to improve the operations of Public Employment Security Offices, with the

cooperation of individuals, organizations, schools and related administrative

agencies;

(vii) to provide employment placement or vocational guidance businesses to

those who are entitled to receive performances under the provisions of the

Employment Insurance Act (Act No. 116 of 1974), and to achieve the sound

operation of the employment insurance system.

(Cooperation of Employment Security Agencies and Employment Placement

Business Providers, etc.)

Article 5-2 In order to achieve the appropriate and smooth adjustment of

demand for and supply of the labor force, employment security bodies,

employment placement business providers and labor supply business providers

shall endeavor to mutually cooperate with respect to the enrichment of

employment information and the improvement of technology pertaining to the

adjustment of demand for and supply of the labor force.

(Clear Indication of Working Conditions, etc.)

Article 5-3 (1) Public Employment Security Offices, employment placement

business providers, persons conducting recruitment of workers, commissioned

recruiters (which means commissioned recruiters provided in Article 39) and

labor supply business providers (referred to as "Public Employment Security

Offices, etc." in the following Article) shall, in carrying out employment

placement, recruitment of workers, and labor supply, clearly indicate to job

seekers, those who intend to become workers in response to recruitment, and

supplied workers the contents, wages, working hours and other working

conditions of the business such persons are to engage in.

(2) Job offerers shall, in filing offers for posting job offerings, clearly indicate to

Public Employment Security Offices and employment placement business

providers, and those who intend to receive labor supply shall clearly indicate in

advance to labor supply business providers, the contents, wages, working hours

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and other working conditions of the business job seekers and supplied workers

are to engage in.

(3) With respect to matters concerning wages and working hours and other

matters specified by an Ordinance of the Ministry of Health, Labour and

Welfare, a clear indication under the provisions of the preceding two

paragraphs shall be given pursuant to a method specified by an Ordinance of

the Ministry of Health, Labour and Welfare.

(Treatment of Personal Information of Job Seekers, etc.)

Article 5-4 (1) Public Employment Security Offices, etc. shall, in collecting,

retaining and using the personal information of job seekers, those who intend

to become workers in response to recruitment and supplied workers

(hereinafter referred to as "personal information of job seekers, etc." in this

Article) with respect to their businesses, collect the personal information of job

seekers, etc. within the scope necessary to achieve the purpose of their

businesses and retain and use the same within the scope of the purpose of said

collection; provided, however, that this shall not apply in a case where the

person concerned consents or there is other good cause.

(2) Public Employment Security Offices, etc. shall take necessary measures in

order to appropriately manage the personal information of job seekers, etc.

(Offers for Posting Job Offerings)

Article 5-5 Public Employment Security Offices and employment placement

business providers shall accept all offers for posting job offerings; provided,

however, that offers may be rejected if the contents of such offers violate any

law or regulation, if the wages, working hours or other working conditions

indicated in the contents of such offers are found to be substantially

inappropriate compared to prevailing working conditions, or if the job offerer

fails to give a clear indication under the provisions of Article 5-3, paragraph 2.

(Offers for Registering as a Job Seeker)

Article 5-6 (1) Public Employment Security Offices and employment placement

business providers shall accept all offers for registering as a job seeker;

provided, however, that offers may be rejected if the contents of such offers

violate any laws or regulations.

(2) Public Employment Security Offices and employment placement business

providers may carry out questioning and skill inspections when they find it to

be necessary for determining the suitability of job seekers for special jobs.

(Introduction, etc. of Employment Compatible with the Abilities of Job Seekers)

Article 5-7 Public Employment Security Offices and employment placement

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business providers shall endeavor to introduce job seekers to employment that

is compatible with their abilities and to introduce job offerers to job seekers

who are compatible with the employment conditions they offer.

Chapter II Employment Placement and Vocational Guidance by

Employment Security Agencies

Section 1 General Rules

(Authority of Director-General of the Employment Security Main Bureau)

Article 6 The Director-General of the Employment Security Main Bureau (which

means the bureau established as an internal bureau of the Ministry of Health,

Labour and Welfare that has jurisdiction over affairs concerning employment

placement, employment guidance and other matters relating to security of

employment; the same shall apply in Article 9) (such person shall be

hereinafter referred to as "Director-General of the Employment Security Main

Bureau") shall, under the direction and supervision of the Minister of Health,

Labour and Welfare, direct and supervise the Prefectural Labour Directors

with respect to matters concerning the implementation of this Act, establish

standards for direction and supervision of the Public Employment Security

Offices, plan and carry out programs to meet the labor needs of industry, plan

and carry out programs to alleviate unemployment, determine the boundaries

of major labor market areas to adjust the supply of and demand for labor, plan

and carry out vocational guidance, and take charge of other affairs necessary

for the implementation of this Act, as well as direct and supervise the officials

under his/her jurisdiction.

(Authority of the Prefectural Labour Directors)

Article 7 The Prefectural Labour Directors shall, under the direction and

supervision of the Director-General of the Employment Security Main Bureau,

take charge of business concerning the liaison and coordination of the

businesses of the Public Employment Security Offices with respect to matters

concerning the implementation of this Act, and direct and supervise the

officials under their jurisdiction and the Chiefs of the Public Employment

Security Offices.

(Public Employment Security Offices)

Article 8 (1) Public Employment Security Offices shall be agencies to serve the

public free of charge that provide employment placement, vocational guidance,

employment insurance businesses, and other necessary businesses for

accomplishing the purpose of this Act.

(2) The Chiefs of the Public Employment Security Offices shall, under the

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direction and supervision of the Prefectural Labour Directors, take charge of

the affairs of the Public Employment Security Office and direct and supervise

the officials under their jurisdiction.

(Qualification, etc. of Officials)

Article 9 In order to ensure the effective performance of the business of Public

Employment Security Offices and other employment security bodies, officials

who exclusively engage in businesses for the implementation of this Act at the

Employment Security Main Bureau, Prefectural Labour Offices, and Public

Employment Security Offices shall be those who have the qualifications and

experience specified by the National Personnel Authority.

Article 9-2 (1) An employment promotion officer(s) shall be assigned at each

Public Employment Security Office.

(2) An employment promotion officer shall provide, based on his/her expert

knowledge, employment guidance mainly to those who have received an

instruction under Article 24, paragraph 1 or paragraph 2 of the Act on

Employment Security, etc. of the Elderly, etc. (Act No. 68 of 1971).

(3) In addition to what is provided for in the preceding two paragraphs,

necessary matters concerning employment promotion officers shall be specified

by the Minister of Health, Labour and Welfare.

(Cooperation with Local Transportation Bureaus)

Article 10 The Public Employment Security Offices shall cooperate in the

businesses of the Local Transportation Bureau Chiefs (including the Chiefs of

the Maritime Traffic Control Divisions) relating to the security of employment

of mariners.

(Affairs Processed by Municipalities)

Article 11 (1) Mayors of municipalities having jurisdiction over areas designated

by the Minister of Health, Labour and Welfare as those for which, due to the

inconvenience of transportation to the Public Employment Security Offices, it

is found difficult to file offers for posting job offerings or offers for registering

as a job seeker directly with the Public Employment Security Offices concerned

(hereinafter referred to as "designated areas" in this paragraph) shall carry out

the following affairs:

(i) acting as an intermediary in the filing of offers for posting job offerings by

places of business located in designated areas and offers for registering as a

job seeker by job seekers who reside in designated areas with the Public

Employment Security Office concerned;

(ii) investigation of necessary matters concerning job offerers pertaining to

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places of business located in designated areas and the employment

placement of job seekers who reside in designated areas, when requested by

the Public Employment Security Office concerned;

(iii) publicizing information from the Public Employment Security Office

concerned concerning job offering or job seeking to job offerers pertaining to

places of business located in designated areas and job seekers who reside in

designated areas.

(2) The Chiefs of the Public Employment Security Offices concerned may give

necessary instructions to mayors of municipalities if they find it particularly

necessary with respect to the affairs set forth in the preceding paragraph.

(3) The mayors of municipalities shall not collect, under any name, actual costs

or any other fees for the affairs set forth in paragraph 1, from job offerers or

job seekers.

(4) The affairs to be processed by municipalities pursuant to the provisions of

paragraph 1 shall be Item 1 Statutory Commissioned Affairs provided in

Article 2, paragraph 9, item 1 of the Local Autonomy Act (Act No. 67 of 1947).

Article 12 Deletion

(Form for Activity Reports)

Article 13 (1) The Director-General of the Employment Security Main Bureau

shall establish forms for activity reports of Prefectural Labour Offices and

Public Employment Securities Offices to be made pursuant to the provisions of

this Act.

(2) The Prefectural Labour Offices and the Public Employment Security Offices

shall submit activity reports in accordance with the forms prescribed set forth

in the preceding paragraph.

(Survey, etc. of Demand for and Supply of Labor)

Article 14 The Director-General of the Employment Security Main Bureau shall,

in order to contribute to the appropriate and smooth adjustment of demand for

and supply of the labor force, endeavor to collect, through the surveys and

reports of Prefectural Labour Offices and Public Employment Security Offices

on the demand for and supply of labor, information concerning the

circumstances of employment and unemployment and take necessary measures

such as organizing, analyzing and publishing said information.

(Standard Job Titles, etc.)

Article 15 The Director-General of the Employment Security Main Bureau shall,

based on the results of surveys and research on employment, establish

standard job titles to be commonly used in employment placement businesses,

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recruitment of workers and labor supply businesses, prepare job descriptions

and occupational classification tables, and endeavor to disseminate the same.

(Standards for Employment Placement, etc.)

Article 16 The Minister of Health, Labour and Welfare may establish necessary

standards concerning the implementation of employment placement and

vocational guidance for the physically or mentally disabled, those seeking to

newly enter employment, middle-aged and older unemployed persons and

others in need of special consideration with respect to obtaining employment

Section 2 Employment Placement

(Area of Employment Placement)

Article 17 (1) To the extent possible, Public Employment Security Offices shall

endeavor to introduce job seekers to positions that do not necessitate a change

of domicile or residence at the time of employment.

(2) Public Employment Security Offices shall conduct employment placement

activities over wide areas if, within their jurisdictional district, they are unable

to introduce job seekers to employment compatible with their wishes and

abilities or are unable to supply job offerers with the desired job seekers or fill

the number of positions offered.

(3) Neighboring Public Employment Security Offices shall endeavor to cooperate

to the extent possible with respect to the employment placement activities over

wide areas set forth in the preceding paragraph.

(4) Necessary matters concerning the employment placement activities over wide

areas provided for in paragraph 2 shall be specified by an Ordinance of the

Ministry of Health, Labour and Welfare.

(Development of Job Offerings and Job Applications, Etc.)

Article 18 (1) In addition to duties performed based on the provisions of other

Acts, Public Employment Security Offices shall, in accordance with the

prescriptions of an Ordinance of the Ministry of Health, Labour and Welfare,

develop necessary job offerings and job applications in order to give job seekers

the opportunity to obtain jobs conformed to their abilities and to enable job

offerers to secure the necessary labor force.

(2) Public Employment Security Offices may request the provision of information

and other necessary liaison and cooperation from local public entities,

employer organizations, labor unions and other persons concerned with respect

to the development of job offerings and job applications set forth in the

preceding paragraph.

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(Arrangement for Public Vocational Training)

Article 19 The Public Employment Security Offices shall arrange job seekers in

undergoing vocational training conducted by human resources development

centers (including that conducted by the Polytechnic University).

(Non-Intervention in Labor Disputes)

Article 20 (1) In order to maintain their neutrality regarding labor disputes, the

Public Employment Security Offices, shall not introduce job seekers to a place

of business in which there is a strike or lock-out.

(2) In addition to the case prescribed in the preceding paragraph, in the event

that the Labour Relations Commission notifies the Public Employment

Security Office that a dispute which is likely to develop into a strike or lock-out

has arisen at a place of business and that unlimited introduction of job seekers

will hamper the settlement of the dispute, the Public Employment Security

Office shall not introduce job seekers to that place of business; provided,

however, that this shall not apply to the introduction of workers up to the limit

necessary to maintain the number of workers normally employed prior to the

occurrence of the dispute.

(Implementation Provision)

Article 21 Procedures for employment placement and other necessary matters

concerning employment placement shall be specified by an Ordinance of the

Ministry of Health, Labour and Welfare.

Section 3 Vocational Guidance

(Implementation of Vocational Guidance)

Article 22 The Public Employment Security Offices shall provide vocational

guidance for the physically or mentally disabled, those seeking to newly enter

employment and others in need of special guidance with regard to obtaining

employment.

(Aptitude Inspections)

Article 23 When they find it to be necessary, the Public Employment Security

Offices may conduct aptitude inspections with respect to those persons who

receive vocational guidance.

(Coordination with Public Human Resources Development Facilities, etc.)

Article 24 The Public Employment Security Offices may request necessary

cooperation from public human resources development facilities and other

persons concerned when they find it to be necessary to provide persons

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receiving vocational guidance with information, consultation or any other

assistance concerning vocational training conducted by public human resources

development facilities (including that conducted by the Polytechnic University).

(Implementation Provisions)

Article 25 Methods of vocational guidance and other necessary matters

concerning vocational guidance shall be specified by an Ordinance of the

Ministry of Health, Labour and Welfare.

Section 4 Employment Placement, etc. for Students, Pupils or School

Graduates

(Employment Placement, etc. for Students, Pupils, etc.)

Article 26 (1) With respect to employment placement for students or pupils of or

graduates from schools provided in Article 1 of the School Education Act (Act

No. 26 of 1947) (hereinafter referred to as "schools") (such students, pupils and

graduates exclude those specified by a Cabinet Order; hereinafter referred to

as "students, pupils, etc."), the Public Employment Security Offices shall

endeavor, in cooperation with the schools, to provide students, pupils, etc. with

employment information and results of occupational surveys and research, give

them vocational guidance, and, through liaison between Public Employment

Security Offices, develop as many job offerings as possible that are found to be

appropriate to be introduced to students, pupils, etc., and arrange students,

pupils, etc. to obtain jobs conformed to their abilities.

(2) Public Employment Security Offices shall cooperate with vocational guidance

that schools give to students and pupils.

(3) In order to effectively and efficiently provide vocational guidance to students,

pupils, etc., Public Employment Security Offices shall, in cooperation with

schools and other persons concerned, create opportunities for employment

experience and take any other necessary measures for deepening the interest

and understanding of students and pupils concerning the choice of employment.

(Undertaking of Businesses of Public Employment Security Offices by Schools)

Article 27 (1) The Chiefs of the Public Employment Security Offices may, when

they deem it to be necessary for smoothly conducting employment placement

for students, pupils, etc., have the heads of schools undertake a part of the

businesses of the Public Employment Security Offices, with the consent, or at

the request, of the heads of those schools.

(2) The businesses that the Chiefs of the Public Employment Security Offices

may have the heads of schools undertake pursuant to the provisions of the

preceding paragraph shall be limited to the following matters:

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(i) accepting offers for posting job offerings and forwarding the accepted offers

for posting job offerings to the Public Employment Security Offices;

(ii) accepting offers for registering as a job seeker;

(iii) introducing job seekers to job offerers;

(iv) providing vocational guidance;

(v) providing guidance after employment;

(vi) rendering arrangement for admission to public human resources

development facilities (including training conducted by the Polytechnic

University).

(3) Heads of schools who undertake a part of the businesses of the Public

Employment Security Offices pursuant to the provisions of paragraph 1

(hereinafter referred to as "business-undertaking school heads") may reject

offers for posting job offerings or offers for registering as a job seeker, with

respect to jobs that are not relevant to the courses of education given by the

schools, notwithstanding the provisions of the main clause of Article 5-5 and

the main clause of Article 5-6, paragraph 1.

(4) Business-undertaking school heads may, upon consultation with the Chiefs of

the Public Employment Security Offices, appoint persons responsible for

employment security from among the personnel of the school and have them

take charge of the businesses provided for in the items of paragraph 2 and

engage in the liaison with the Public Employment Security Offices.

(5) The Chiefs of the Public Employment Security Offices shall provide business-

undertaking school heads with employment information, the results of surveys

and research relating to employment and other assistance in the performance

of the businesses provided for in the items of paragraph 2 undertaken by

business-undertaking school heads, and may also provide business-

undertaking school heads with economic assistance, when it is found to be

especially necessary.

(6) Business-undertaking school heads shall comply with the standards

established by the Minister of Health, Labour and Welfare in consultation with

the Minister of Education, Culture, Sports, Science and Technology concerning

the performance of their businesses.

(7) When a business-undertaking school head has violated laws or ordinances or

the standards set forth in the preceding paragraph, the Chief of the Public

Employment Security Office may suspend the businesses provided for in the

items of paragraph 2 undertaken by said business-undertaking school head.

(8) The provisions of the preceding paragraphs shall not apply to the case where

the heads of schools provide free employment placement businesses based on

the provisions of Article 33-2.

(Implementation Provisions)

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Article 28 Methods of liaison, assistance or cooperation between Public

Employment Security Offices and schools and other necessary matters

concerning employment placement for students, pupils, etc. shall be specified

by an Ordinance of the Ministry of Health, Labour and Welfare.

Article 29 Deletion

Chapter III Employment Placement by Persons Other Than Employment

Security Agencies

Section 1 Fee-Charging Employment Placement Businesses

(License for Fee-Charging Employment Placement Businesses)

Article 30 (1) A person who intends to carry out a fee-charging employment

placement business shall obtain a license from the Minister of Health, Labour

and Welfare.

(2) A person who intends to obtain the license set forth in the preceding

paragraph shall submit to the Minister of Health, Labour and Welfare a

written application that states the following matters:

(i) the name, domicile and, if a juridical person, the name of its representative

person;

(ii) if a juridical person, the names and domiciles of its officers;

(iii) the name and location of the place of business carrying out the fee-

charging employment placement business;

(iv) the name and domicile of the employment placement manager appointed

pursuant to the provisions of Article 32-14;

(v) any other matters specified by an Ordinance of the Ministry of Health,

Labour and Welfare.

(3) The written application set forth in the preceding paragraph shall be

accompanied by a business plan pertaining to the fee-charging employment

placement business and other documents specified by an Ordinance of the

Ministry of Health, Labour and Welfare for each place of business carrying out

said service.

(4) The business plan set forth in the preceding paragraph shall, pursuant to the

provisions of an Ordinance of the Ministry of Health, Labour and Welfare,

state the number of projected job seekers pertaining to the fee-charging

employment placement business and other matters concerning employment

placement for each place of business carrying out said service.

(5) When the Minister of Health, Labour and Welfare grants the license provided

for in paragraph 1, he/she shall consult with the Labour Policy Council in

advance.

(6) A person who intends to obtain the license provided for in paragraph 1 shall

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pay the fee specified by an Ordinance of the Ministry of Health, Labour and

Welfare by considering the actual costs into account.

(Standards, etc. for Licenses)

Article 31 (1) When the Minister of Health, Labour and Welfare finds that an

application for the license provided for in paragraph 1 of the preceding Article

conforms with the following standards, he/she shall grant the license provided

for in said paragraph:

(i) the applicant has a sufficient financial basis to soundly perform the

business concerned;

(ii) the applicant has taken necessary measures to appropriately manage

personal information and keep the secrets of job offerers and job seekers;

(iii) in addition to what is provided for in the preceding two items, the

applicant has the ability to appropriately perform the business concerned.

(2) When the Minister of Health, Labour and Welfare does not grant the license

provided for in paragraph 1 of the preceding Article, he/she shall give notice to

such effect to the applicant concerned, stating the reasons therefor, without

delay.

(Reasons for Disqualification of License)

Article 32 Notwithstanding the provisions of paragraph 1 of the preceding

Article, the Minister of Health, Labour and Welfare shall not grant the license

provided for in Article 30, paragraph 1 to a person who falls under any of the

following items:

(i) a person who has been sentenced to imprisonment without work or a severer

punishment or who has been sentenced to a fine pursuant to the provisions of

this Act or the provisions of another Act concerning labor that are specified

by an order or the provisions of the Act for the Prevention of Unjust Acts by

Organized Crime Groups (Act No. 77 of 1991) (excluding the provisions of

Article 48 of said Act), or for having committed an offense under Article 204,

Article 206, Article 208, Article 208-3, Article 222 or Article 247 of the Penal

Code (Act No. 45 of 1907), or an offense under the Act for the Punishment of

Acts of Violence (Act No. 60 of 1926), or an offense under Article 73-2,

paragraph 1 of the Immigration Control and Refugee Recognition Act (Act No.

319 of 1951), and with respect to whom five years have not yet passed

calculated from the day on which execution of said sentence was completed or

the sentence became no longer applicable;

(ii) an adult ward, a person under curatorship or a bankrupt whose civil rights

have not been restored;

(iii) a person whose license for an employment placement business was

rescinded pursuant to the provisions of Article 32-9, paragraph 1 (including

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the case where it is applied mutatis mutandis pursuant to Article 33,

paragraph 4), and with respect to whom five years have not yet passed

calculated from the day of the said rescission;

(iv) a minor who does not possess the same capacity to act as an adult with

regard to business and whose statutory representative falls under any of the

preceding three items;

(v) a juridical person any of whose officers falls under any of the preceding

items.

Article 32-2 Deletion [Act No. 82 of June 2003]

(Fees)

Article 32-3 (1) Except in the following cases, a person who has obtained the

license provided for in Article 30, paragraph 1 (hereinafter referred to as "fee-

charging employment placement business provider") shall not receive, under

any name, the actual costs or any other fees or compensation with respect to

employment placement:

(i) a case where a fee of a type and amount specified by an Ordinance of the

Ministry of Health, Labour and Welfare, considering expenses ordinarily

necessary for employment placement, is collected;

(ii) a case where a fee is collected based on a schedule of fees (which means a

schedule specifying the types and amounts of fees and other matters

concerning fees) notified in advance to the Minister of Health, Labour and

Welfare.

(2) Notwithstanding the provisions of the preceding paragraph, a fee-charging

employment placement business provider shall not collect any fees from job

seekers; provided, however, that in a case specified by an Ordinance of the

Ministry of Health, Labour and Welfare as one where collection of a fee from a

job seeker is found to be necessary for the interest of said job seeker, a fee may

be collected though only in the cases listed in the items of the preceding

paragraph.

(3) The schedule of fees provided in paragraph 1, item 2 shall be prepared by a

method specified by an Ordinance of the Ministry of Health, Labour and

Welfare.

(4) When the Minister of Health, Labour and Welfare finds that a fee based on

the schedule of fees provided in paragraph 1, item 2 falls under any of the

following items, he/she may order the fee-charging employment placement

business provider concerned to change the schedule of fees within a set due

date:

(i) when the fee unjustly discriminates against particular persons;

(ii) when the fee is found to be substantially unjust due to a failure to clearly

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specify the types and amounts of fees and other matters concerning fees.

(License Certificate)

Article 32-4 (1) When the Minister of Health, Labour and Welfare has granted

the license provided for in Article 30, paragraph 1, he/she shall, pursuant to

the provisions of an Ordinance of the Ministry of Health, Labour and Welfare,

issue a license certificate(s) according to the number of the place(s) of business

carrying out the fee-charging employment placement business.

(2) A person who has received issuance of a license certificate shall post said

license certificate at each place of business carrying out the fee-charging

employment placement business, and present it upon demand from a person

concerned.

(3) If the license certificate concerned is lost or destroyed, the person who

received issuance of the license certificate shall promptly notify the Minister of

Health, Labour and Welfare to such effect and receive reissuance of the license

certificate.

(Conditions on License)

Article 32-5 (1) Conditions may be attached to the license provided for in Article

30, paragraph 1 and such conditions may be changed.

(2) The conditions set forth in the preceding paragraph shall be limited to the

minimum necessary in the light of the purpose of the license provided for in

Article 30, paragraph 1 or for achieving the secure implementation of matters

pertaining to said license, and shall not impose any undue obligation on the

person receiving the license concerned.

(Valid Period, etc. of License)

Article 32-6 (1) The valid period of the license provided for in Article 30,

paragraph 1 shall be three years calculated from the day of the grant of said

license.

(2) A person who intends to continue to provide a fee-charging employment

placement business to which a license pertains after the expiration of the valid

period of the license prescribed in the preceding paragraph (in the case where

the valid period of said license has been renewed pursuant to the provisions of

this paragraph, the valid period of the license as so renewed) shall receive a

renewal of the valid period of the license.

(3) When there has been an application for renewal of the valid period of the

license prescribed in the preceding paragraph, the Minister of Health, Labour

and Welfare shall renew the valid period of said license if he/she finds that the

application conforms with the standards listed in the items of Article 31,

paragraph 1.

15

(4) A person who intends to receive a renewal of the valid period of a license

provided in paragraph 2 shall pay a fee the amount of which is specified by an

Ordinance of the Ministry of Health, Labour and Welfare, by considering the

actual costs into consideration.

(5) The valid period of the license provided for in Article 30, paragraph 1 in a

case where a renewal thereof has been received pursuant to the provisions of

paragraph 2 shall be five years calculated from the day following the day of

expiration of the valid period of the license prior to renewal.

(6) The provisions of Article 30, paragraphs 2 to 4 inclusive, Article 31,

paragraph 2 and Article 32 (excluding item 3) shall apply mutatis mutandis to

renewal of the valid period of a license provided in paragraph 2.

(Notification of Change)

Article 32-7 (1) A fee-charging employment placement business provider shall,

when there has been a change to any of the matters listed in the items of

Article 30, paragraph 2 (excluding one specified by an Ordinance of the

Ministry of Health, Labour and Welfare), notify the Minister of Health, Labour

and Welfare of such change without delay. In this case, where the changed

matter relates to the establishment of a new place(s) of business for conducting

the fee-charging employment business, the notification shall be accompanied

by a business plan pertaining to said place of business and any other

documents specified by an Ordinance of the Ministry of Health, Labour and

Welfare.

(2) The provisions of Article 30, paragraph 4 shall apply mutatis mutandis to the

business plan set forth in the preceding paragraph.

(3) Upon receiving a notification of change pertaining to the establishment of a

place(s) of business for conducting the fee-charging employment business filed

under paragraph 1, the Minister of Health, Labour and Welfare shall, pursuant

to the provisions of an Ordinance of the Ministry of Health, Labour and

Welfare, issue a license certificate(s) according to the number of place(s) of

business to be established.

(4) Where a fee-charging employment business provider files the notification

under paragraph 1, and the matters pertaining to said notification under falls

any of the matters stated in the license certificate, he/she shall, pursuant to

the provisions of an Ordinance of the Ministry of Health, Labour and Welfare,

apply for the revision of the license certificate.

(Abolition of Business)

Article 32-8 (1) When a fee-charging employment placement business provider

has discontinued the fee-charging employment placement business concerned,

he/she shall, pursuant to the provisions of an Ordinance of the Ministry of

16

Health, Labour and Welfare, give notification to such effect to the Minister of

Health, Labour and Welfare without delay.

(2) Upon receiving the notification under the preceding paragraph, the license

provided for in Article 30, paragraph 1 shall cease to be effective.

(Rescission, etc. of License)

Article 32-9 (1) The Minister of Health, Labour and Welfare may, if a fee-

charging employment placement business provider falls under any of the

following items, rescind the license provided for in Article 30, paragraph 1:

(i) when the fee-charging employment placement business provider falls under

any of the items of Article 32 (excluding item 3);

(ii) when the fee-charging employment placement business provider has

violated any provisions of this Act or the Worker Dispatching Act (excluding

the provisions of Chapter 3, Section 4) or any order or disposition based on

such provisions;

(iii) when the fee-charging employment placement business provider has

violated any conditions attached to the license pursuant to the provisions of

Article 32-5, paragraph 1.

(2) When the fee-charging employment placement business provider falls under

item 2 or item 3 of the preceding paragraph, the Minister of Health, Labour

and Welfare may order the suspension of all or part of the fee-charging

employment placement business concerned for a set period.

(Prohibition on Lending Name)

Article 32-10 A fee-charging employment placement business provider shall not

allow another person to conduct a fee-charging employment placement

business under the name of said fee-charging employment placement business

provider.

(Scope of Employment Handled)

Article 32-11 (1) A fee-charging employment placement business provider shall

not introduce job seekers to any employment in which they perform port

transport work (which means port transport work provided in Article 2, item 2

of the Port Labor Act or work specified by an Ordinance of the Ministry of

Health, Labour and Welfare as work equivalent thereto that is performed at a

port other than a port provided in item 1 of the same Article), any employment

in which they perform construction work (which means work pertaining to civil

engineering, architecture and other work of constructing, remodeling,

preserving, repairing, modifying, demolishing or dismantling a structure or

any work in preparation therefor) or any other employment specified by an

Ordinance of the Ministry of Health, Labour and Welfare as one where

17

provision of arrangement to obtain such employment through a fee-charging

employment placement business presents the risk of interfering with the

protection of workers who obtain such employment.

(2) The provisions of Article 5-5 and Article 5-6, paragraph 1 shall not apply to

offers for posting job offerings and offers for registering as a job seeker

concerning the employment prescribed in the preceding paragraph pertaining

to a fee-charging employment placement business provider.

(Notification, etc. of the Scope of Employment Handled, etc.)

Article 32-12 (1) When a person who intends to provide a fee-charging

employment placement business or a fee-charging employment placement

business provider has decided on the scope of employment to be handled by the

fee-charging employment placement business or the scope of other businesses

(hereinafter referred to as "scope of employment handled, etc." in this Article

and the following Article), he/she shall notify it to the Minister of Health,

Labour and Welfare. The same shall apply when a person who intends to

provide a fee-charging employment placement business or a fee-charging

employment placement business provider has made a change thereto.

(2) In the case where a person who intends to provide a fee-charging employment

placement business or a fee-charging employment placement business provider

has given the notification of the scope of employment handled, etc. pursuant to

the provisions of the preceding paragraph, the provisions of Article 5-5 and

Article 5-6, paragraph 1 shall apply only within the scope of employment

handled, etc.

(3) When the Minister of Health, Labour and Welfare finds that the scope of

employment handled, etc. that has been notified pursuant to the provisions of

paragraph 1 unjustly discriminates against particular persons, he/she may

order the person who intends to provide a fee-charging employment placement

business or the fee-charging employment placement business provider to

change the scope of employment handled, etc. within a set due date.

(Clear Indication, etc. of the Scope of Employment Handled, etc.)

Article 32-13 Fee-charging employment placement business providers shall,

pursuant to the provisions of an Ordinance of the Ministry of Health, Labour

and Welfare, clearly indicate to job offerers and job seekers the scope of

employment handled, etc., matters concerning fees, matters concerning the

processing of complaints, and other matters specified by an Ordinance of the

Ministry of Health, Labour and Welfare as appropriate for job offerers and job

seekers to be informed of in advance with regard to the contents of the

operations of the employment placement business.

18

(Employment Placement Manager)

Article 32-14 Fee-charging employment placement business providers shall,

pursuant to the provisions of an Ordinance of the Ministry of Health, Labour

and Welfare, appoint an employment placement manager from among persons

(excluding minors) who do not fall under items 1 to 3 inclusive of Article 32 in

order to have him/her supervise and manage the following matters concerning

employment placement:

(i) matters concerning the processing of complaints received from job offerers

and job seekers;

(ii) matters concerning the management of information on job offerers (limited

to information pertaining to employment placement) and personal

information of job seekers;

(iii) matters concerning the administration and improvement of the acceptance

of offers for posting job offerings and offers for registering as a job seeker,

giving advice and guidance to job offerers and job seekers, and other

businesses of fee-charging employment placement businesses;

(iv) matters concerning the liaison and coordination with employment security

agencies.

(Keeping of Books)

Article 32-15 Fee-charging employment placement business providers shall

prepare books and documents specified by an Ordinance of the Ministry of

Health, Labour and Welfare with respect to their operations and keep same at

their place(s) of business.

(Business Reports)

Article 32-16 (1) Fee-charging employment placement business providers shall,

pursuant to the provisions of an Ordinance of the Ministry of Health, Labour

and Welfare, prepare a business report pertaining to the fee-charging

employment placement business for each place of business carrying out said

business, and submit it to the Minister of Health, Labour and Welfare.

(2) The business report set forth in the preceding paragraph shall, pursuant to

the provisions of an Ordinance of the Ministry of Health, Labour and Welfare,

state the number of job seekers pertaining to the fee-charging employment

placement business for each place of business carrying out said business, the

amount of fees concerning employment placement, and other matters

concerning employment placement.

Section 2 Free Employment Placement Businesses

(Free Employment Placement Businesses)

19

Article 33 (1) A person who intends to carry out a free employment placement

business (excluding one conducted by an employment security agency; the same

shall apply hereinafter) shall, except in the case of carrying out such business

pursuant to the provisions of the following Article to Article 33-4, obtain a

license from the Minister of Health, Labour and Welfare.

(2) Prior to granting the license referred to set forth in the preceding paragraph,

the Minister of Health, Labour and Welfare shall hear the opinion of the

Labour Policy Council; provided, however, that this shall not apply in the case

of granting a license to a labor union, etc.

(3) The valid period of the license referred to in paragraph 1 shall be five years

calculated from the day of the grant of said license.

(4) The provisions of Article 30, paragraphs 2 to 4 inclusive, Article 31, Article 32,

Article 32-4, Article 32-5, Article 32-6, paragraph 2, paragraph 3 and

paragraph 5, Articles 32-7 to 32-10 inclusive, and Articles 32-12 to 32-16

inclusive shall apply mutatis mutandis to the free employment placement

business conducted under the license provided for in paragraph 1 and the

person who obtained said license. In this case, the phrase "the license set forth

in the preceding paragraph" in Article 30, paragraph 2, the phrase "the license

provided for in paragraph 1 of the preceding Article" in Article 31, and the

phrase "the license provided for in Article 30, paragraph 1" in Article 32,

Article 32-4, paragraph 1, Article 32-5, Article 32-6, paragraph 5, Article 32-8,

paragraph 2 shall be deemed to be replaced with "the license provided for in

Article 33, paragraph 1," the phrase "preceding paragraph" in Article 32-6,

paragraph 2 shall be deemed to be replaced with "Article 33, paragraph 3," the

phrase "matters concerning fees, matters concerning complaints" in Article 32-

13 shall be deemed to be replaced with "matters concerning complaints," the

phrase "the amount of fees concerning employment placement, and other

matters" in Article 32-16, paragraph 2 shall be deemed to be replaced with

"and other matters."

(5) The provisions of Article 30, paragraphs 2 to 4 inclusive, Article 31,

paragraph 2, and Article 32 (excluding item 3) shall apply mutatis mutandis to

renewal of the valid period of the license provided for in Article 32-6,

paragraph 2 as applied mutatis mutandis pursuant to the preceding paragraph.

(Free Employment Placement Businesses Conducted by Schools, etc.)

Article 33-2 (1) The heads of the facilities listed in the following items may

conduct, after giving notification to the Minister of Health, Labour and Welfare,

free employment placement businesses for the persons stipulated in the

respective items (including the persons specified by an Ordinance of the

Ministry of Health, Labour and Welfare as those equivalent thereto):

(i) schools (excluding elementary schools and kindergartens) -- students, pupils,

20

etc. of said schools;

(ii) special training colleges -- students of said special training colleges or

graduates of said special training colleges;

(iii) facilities listed in the items of Article 15-6, paragraph 1 of the Human

Resources Development Promotion Act (Act No. 64 of 1969) -- those receiving

vocational training conducted by said facilities or those who have completed

said vocational training;

(iv) Polytechnic University -those receiving vocational training conducted by

the Polytechnic University or instructor training provided in Article 27,

paragraph 1 of the Human Resources Development Promotion Act, or those

who have completed said vocational training or said instructor training.

(2) The heads of the facilities listed in the items of the preceding paragraph

conducting free employment placement businesses pursuant to the provisions

of said paragraph may designate persons to be in charge of the businesses

concerning the employment placement business from among the personnel of

said facilities, and may have those persons conduct such matters in their place.

(3) The Minister of Health, Labour and Welfare may establish standards

concerning the execution of the businesses of free employment placement

businesses carried out by the heads of the facilities listed in the items of

paragraph 1 pursuant to the provisions of said paragraph.

(4) When the Minister of Health, Labour and Welfare intends to establish

standards under the preceding paragraph pertaining to the heads of the

facilities listed in item 1 and item 2 of paragraph 1, he/she shall consult with

the Minister of Education, Culture, Sports, Science and Technology in advance.

(5) The heads of the facilities listed in the items of paragraph 1 who intend to

carry out a free employment placement business pursuant to the provisions of

said paragraph may determine the scope of employment placement to be

handled by the facility and give the notification provided for in said paragraph.

(6) In a case where the heads of the facilities listed in the items of paragraph 1

have determined the scope of employment placement and given the notification

pursuant to the provisions of the preceding paragraph, the provisions of Article

5-5 and Article 5-6, paragraph 1 shall apply only within the scope of

employment placement.

(7) The provisions of Article 32-8, paragraph 1, Article 32-9, paragraph 2, Article

32-10, Article 32-13, Article 32-15, and Article 32-16 shall apply mutatis

mutandis to the free employment placement business conducted by the heads

of facilities listed in the items of paragraph 1 pursuant to the provisions of said

paragraph. In this case, the phrase "item 2 or item 3 of the preceding

paragraph" in Article 32-9, paragraph 2 shall be deemed to be replaced with

"item 2 of the preceding paragraph," the phrase "matters concerning fees,

matters concerning complaints" in Article 32-13 shall be deemed to be replaced

21

with "matters concerning complaints," the phrase "a business report pertaining

to the fee-charging employment placement business for each place of business

carrying out said business" in Article 32-16, paragraph 1 shall be deemed to be

replaced with "a business report," the phrase "the fee-charging employment

placement business for each place of business carrying out said business" in

paragraph 2 of said Article shall be deemed to be replaced with "the fee-

charging employment placement business," and the phrase " the amount of fees

concerning employment placement, and other" in said paragraph shall be

deemed to be replaced with "and other."

(8) In the case where the Minister of Health, Labour and Welfare intends to

order the head of any of the facilities listed in item 1 or item 2 of paragraph 1

who is conducting a free employment placement business pursuant to the

provisions of said paragraph to suspend such business pursuant to the

provisions of Article 32-9, paragraph 2 as applied mutatis mutandis pursuant

to the preceding paragraph, he/he shall notify the educational administrative

agency in advance.

(Free Employment Placement Businesses Conducted by Special Juridical

Persons)

Article 33-3 (1) A juridical person incorporated pursuant to a special Act and

which is specified by an Ordinance of the Ministry of Health, Labour and

Welfare may, after giving notification to the Minister of Health, Labour and

Welfare, conduct free employment placement businesses in which the job

offerers are direct or indirect members (hereinafter referred to as "members" in

this paragraph) of said juridical person or the job seekers are members of said

juridical person or persons employed by such members.

(2) The provisions of Article 30, paragraphs 2 to 4 inclusive, Article 32, Article

32-4, paragraph 2, Article 32-7, paragraph 1 and paragraph 2, Article 32-8,

paragraph 1, Article 32-9, Article 32-10, and Articles 32-12 to 32-16 inclusive

shall apply mutatis mutandis to the free employment placement business

conducted after giving the notification set forth in the preceding paragraph and

the juridical person that has given the notification provided for in said

paragraph. In this case, the terms and phrases listed in the middle column of

the following table in the provisions listed in the left column of said table shall

be replaced respectively with the terms and phrases listed in the right column

of said table.

22

Article 30, A person who A juridical person that intends to give

paragraph 2 intends to obtain the the notification provided for in Article

license set forth in 33-3, paragraph 1

the preceding

paragraph

written application written notice

Article 30, written application written notice

paragraph 3

Article 32 Notwithstanding the A juridical person that falls under any

provisions of of the following items

paragraph 1 of the

preceding Article,

the Minister of

Health, Labour and

Welfare

shall not grant the shall not carry out a free employment

license provided for placement service by establishing a

in Article 30, new office for free employment

paragraph 1 to a placement service

person who falls

under any of the

following items

Article 32-4, A person who has A juridical person that has given the

paragraph 2 received issuance of notification provided for in Article 33-

a license certificate 3, paragraph 1

said license the document stating that said

certificate notification has been given and other

matters specified by an Ordinance of

the Ministry of Health, Labour and

Welfare

Article 32-9, , rescind the license order discontinuance of said free

paragraph 1 provided for in employment placement service, and if

Article 30, the free employment placement service

paragraph 1 provider falls under Article 32, item 3

at the time of commencement of the

free employment placement service (in

the case of conducting free employment

placement services by establishing two

or more places of business, the free

employment placement service for each

place of business; the same shall apply

hereinafter in this paragraph), order

discontinuance of said free employment

placement service

Article 32-9, item 2 or item 3 of item 2 of the preceding paragraph

paragraph 2 the preceding

paragraph

23

Article 32-13 matters concerning matters concerning complaints

fees, matters

concerning

complaints

Article 32- the amount of fees and other matters

16, concerning

paragraph 2 employment

placement, and other

matters

(Free Employment Placement Businesses Conducted by Local Public Entities)

Article 33-4 (1) When a local public entity finds it to be necessary to conduct free

employment placement businesses as businesses incidental to those concerning

a policy for supporting welfare service users or a policy for promoting the

establishment of company sites within the area of the local public entity or any

other policy contributing to the promotion of resident welfare or the

development of industry and the economy within said area, it may carry out

said free employment placement businesses after giving notification to the

Minister of Health, Labour and Welfare.

(2) The provisions of Article 30, paragraphs 2 to 4 inclusive, Article 32-7,

paragraph 1 and paragraph 2, Article 32-8, paragraph 1, Article 32-9,

paragraph 2, Article 32-10, and Articles 32-12 to 32-16 shall apply mutatis

mutandis to the free employment placement business conducted after giving

the notification set forth in the preceding paragraph and the local public entity

that has given the notification provided for in said paragraph. In this case, the

phrase "A person who intends to obtain the license set forth in the preceding

paragraph" in Article 30, paragraph 2 shall be deemed to be replaced with "A

local public entity that intends to give the notification provided for in Article

33-4, paragraph 1," the term "written application" in said paragraph and

paragraph 3 of the same Article shall be deemed to be replaced with "written

notice," the phrase "item 2 or item 3 of the preceding paragraph" in Article 32-

9, paragraph 2 shall be deemed to be replaced with "item 2 of the preceding

paragraph," the phrase "matters concerning fees, matters concerning

complaints" in Article 32-13 shall be deemed to be replaced with "matters

concerning complaints," and the phrase "the amount of fees concerning

employment placement, and other matters" in Article 32-16, paragraph 2 shall

be deemed to be replaced with "and other matters."

(Assistance by Public Employment Security Offices)

Article 33-5 Public Employment Security Offices may provide persons who

conduct free employment placement businesses by obtaining the license

provided for in Article 33, paragraph 1 or giving the notification pursuant to

24

the provisions of Article 33-2, paragraph 1, Article 33-3, paragraph 1, or

paragraph 1 of the preceding Article with employment information and results

of research and study relating to employment and give them other assistance

with respect to the administration of said free employment placement

businesses.

Section 3 Auxiliary Provisions

(Responsibility of Employment Placement Business Providers)

Article 33-6 In administrating the businesses concerned, employment placement

business providers shall, in coordination with employment security agencies,

endeavor to take necessary measures to promote the improvement thereof.

(Guidance, etc. of the Minister of Health, Labour and Welfare)

Article 33-7 If particularly necessary for the adjustment of demand for and

supply of the labor force, the Minister of Health, Labour and Welfare may,

pursuant to the provisions of an Ordinance of the Ministry of Health, Labour

and Welfare, give necessary guidance, advice and recommendations to

employment placement business providers concerning the scope, timing, means,

and number of cases of employment placement, and methods of conducting

employment placement.

(Application Mutatis Mutandis)

Article 34 The provisions of Article 20 shall apply mutatis mutandis to cases

where an employment placement business provider conducts an employment

placement business. In this case, the phrase "Public Employment Security

Offices" in paragraph 1 of said Article shall be deemed to be replaced with

"employment placement business providers" and the phrase "the Public

Employment Security Office" in paragraph 2 of said Article shall be deemed to

be replaced with "the Public Employment Security Office shall report to such

effect to the employment placement business provider, and the employment

placement business provider who receives said report."

(Implementation Regulations)

Article 35 In addition to what is provided for in this Chapter, procedures for

applying for licenses for employment placement businesses and other necessary

matters concerning employment placement businesses shall be specified by an

Ordinance of the Ministry of Health, Labour and Welfare.

Chapter III-2 Labor Recruitment

25

(Commissioning of Recruitment)

Article 36 (1) When a person who intends to employ workers wishes to have a

person other than his/her employee engage in labor recruitment by giving

compensation to such person, he/she shall obtain a license from the Minister of

Health, Labour and Welfare.

(2) Approval of the Minister of Health, Labour and Welfare shall be obtained in

advance for the amount of the compensation set forth in the preceding

paragraph.

(3) When a person who intends to employ workers wishes to have a person other

than his/her employee engage in labor recruitment without giving

compensation to such person, he/she shall give notification to such effect to the

Minister of Health, Labour and Welfare.

(Restrictions on Recruitment)

Article 37 (1) When, pursuant to the provisions of an Ordinance of the Ministry

of Health, Labour and Welfare, it is especially necessary in order to adjust the

demand for and supply of labor, the Minister of Health, Labour and Welfare or

the Chiefs of the Public Employment Security Offices may restrict the time of

recruiting, the number of persons to be recruited, the recruitment area and

other recruiting methods, indicating the reasons therefor, with respect to labor

recruitment (excluding recruitment under the provisions of paragraph 1 of the

preceding Article).

(2) In cases of granting licenses for labor recruitment pursuant to the provisions

of paragraph 1 of the preceding Article, the Minister of Health, Labour and

Welfare may give the person who intends to conduct the labor recruitment

necessary instructions concerning the time of recruiting, the number of persons

to be recruited, the recruitment area and other recruiting methods.

Article 38 Deletion

(Prohibition on Receipt of Compensation)

Article 39 Persons who carry out labor recruitment and persons engaged in labor

recruitment pursuant to the provisions of Article 36, paragraph 1 or paragraph

3 (hereinafter referred to as "commissioned recruiters") shall not receive any

compensation, under any name, with respect to such recruitment from a

worker so recruited.

(Prohibition of Giving Compensation)

Article 40 A person carrying out labor recruitment shall not give any of his/her

employees who is engaged in said labor recruitment or any commissioned

recruiter any compensation, except in the case of paying wages or salaries or

26

the equivalent thereof or in the case of giving compensation pertaining to the

approval provided for in Article 36, paragraph 2.

(Rescission, etc. of License)

Article 41 (1) When a person conducting labor recruitment under the license

provided for in Article 36, paragraph 1 or a person engaged in labor

recruitment pursuant to the provisions of said paragraph has violated any

provisions of this Act or the Worker Dispatching Act (excluding the provisions

of Chapter 3, Section 4) or any order or disposition based on such provisions,

the Minister of Health, Labour and Welfare may rescind the license provided

for in said paragraph or order the suspension of the businesses of the labor

recruitment concerned for a set period.

(2) When a person conducting labor recruitment having given the notification

provided for in Article 36, paragraph3 or a person engaged in labor recruitment

pursuant to the provisions of said paragraph has violated any provisions of this

Act or the Worker Dispatching Act or any order or disposition based on such

provisions, the Minister of Health, Labour and Welfare may order the abolition

of the businesses of the labor recruitment concerned or order the suspension of

the businesses of the labor recruitment concerned for a set period.

(Accurate Indication of Details of Recruitment)

Article 42 A person conducting labor recruitment by means of placing

advertisements in newspapers, magazines or other publications, or by posting

or distributing documents, or by other methods specified by an Ordinance of

the Ministry of Health, Labour and Welfare shall, in order to contribute to the

proper selection of occupations by workers, endeavor to provide an accurate

indication by using plain expressions and the like so as not to cause

misunderstanding by workers responding to said recruitment, in clearly

stating the contents, etc. of the business in which workers would be engaged

under said recruitment pursuant to the provisions of Article 5-3, paragraph 1.

(Application Mutatis Mutandis)

Article 42-2 The provisions of Article 20 shall apply mutatis mutandis to labor

recruitment. In this case, in paragraph 1 of said Article, the phrase "Public

Employment Security Offices" shall be deemed to be replaced with "person who

conducts labor recruitment (excluding a person provided by an Ordinance of

the Ministry of Health, Labour and Welfare; the same shall apply in the

following paragraph) and a commissioned recruiter (which means a

commissioned recruiter provided in Article 39; the same shall apply in said

paragraph)" and the phrase "shall not introduce job seekers to a place of

business" shall be deemed to be replaced with "shall not conduct labor

27

recruitment for work at a place of business," ; in paragraph 2 of said Article,

the phrase "unlimited introduction of job seekers" shall be deemed to be

replaced with "unlimited recruitment of workers" and the phrase "the Public

Employment Security Office shall not introduce job seekers to that place of

business" shall be deemed to be replaced with "the Public Employment Security

Office shall report to persons who conduct labor recruitment and commissioned

recruiters to such effect, and persons who conduct labor recruitment and

commissioned recruiters who receive said report shall not conduct labor

recruitment for work at said place of business," and the term "introduction" in

the proviso to said paragraph shall be deemed to be replaced with

"recruitment."

(Implementation Provisions)

Article 43 Procedures for applying for licenses for labor recruitment and other

necessary matters concerning labor recruitment shall be specified by an

Ordinance of the Ministry of Health, Labour and Welfare.

Chapter III-3 Labor Supply Businesses

(Prohibition of Labor Supply Businesses)

Article 44 No person shall carry out a labor supply business or have workers

supplied by a person who carries out a labor supply business work under

his/her own directions or orders, except in cases provided for in the following

Article.

(License to Carry Out a Labor Supply Business)

Article 45 A labor union, etc. may carry out a free labor supply business where it

has obtained a license from the Minister of Health, Labour and Welfare.

(Application Mutatis Mutandis)

Article 46 The provisions of Article 20, Article 33-5 and Article 41, paragraph 1

shall apply mutatis mutandis to the case where a labor union, etc. carries out a

labor supply business pursuant to the provisions of the preceding Article. In

this case, in Article 20, paragraph 1, the phrase "Public Employment Security

Offices" shall be deemed to be replaced with "labor supply business providers"

and the phrase "shall not introduce job seekers" shall be deemed to be replaced

with "shall not supply workers," in paragraph 2 of said Article, the phrase

"unlimited introduction of job seekers" shall be deemed to be replaced with

"unlimited supply of workers" and the phrase "the Public Employment Security

Office shall not introduce job seekers to that place of business" shall be deemed

to be replaced with "the Public Employment Security Office shall report to

28

labor supply providers to such effect, and labor supply providers who receive

said report shall not supply workers to said place of business," in the proviso to

said paragraph, the term "introduction" shall be deemed to be replaced with

"supply," and in Article 41, the phrase "the license provided for in the same

paragraph" shall be deemed to be replaced with "the license provided for in

said Article," the phrase "the businesses of the labor recruitment concerned"

shall be deemed to be replaced with ""all or part of said labor supply business."

(Implementation Provisions)

Article 47 Procedures for applying for licenses for labor supply businesses and

other necessary matters concerning labor supply businesses shall be specified

by an Ordinance of the Ministry of Health, Labour and Welfare.

Chapter III-4 Worker Dispatching Undertakings, etc.

Article 47-2 Worker dispatching undertakings, etc. shall be governed by the

provisions of the Worker Dispatching Act, the Port Labor Act, and the

Construction Work Act.

Chapter IV Miscellaneous Provisions

(Guidelines)

Article 48 The Minister of Health, Labour and Welfare may make public

necessary guidelines with respect to matters provided in Article 3, Artic le 5-3,

Article 5-4, Article 33-6 and Article 42 in order that employment placement

business providers, persons who conduct labor recruitment, commissioned

recruiters and labor supply providers handle said matters appropriately.

(Guidance and Advice)

Article 48-2 When the Minister of Health, Labour and Welfare finds it to be

necessary with respect to the implementation of this Act, he/she may give

necessary guidance and advice to employment placement business providers,

persons who conduct labor recruitment, commissioned recruiters and labor

supply providers in order to secure the appropriate administration of their

businesses.

(Order for Improvement)

Article 48-3 If, in a case when an employment placement business provider, a

person who conducts labor recruitment, a commissioned recruiter or a labor

supply provider violates any provision of this Act or any order based on this

Act in connection with the operations of such person, the Minister of Health,

29

Labour and Welfare finds it to be necessary in order to secure the appropriate

administration of said operations, he/she may order such person to take

necessary measures to improve the administration of said operations.

(Report to the Minister of Health, Labour and Welfare)

Article 48-4 (1) In a case where an employment placement business provider, a

person who conducts labor recruitment, a commissioned recruiter or a labor

supply provider violates any provision of this Act or any order based on this

Act, a job seeker who filed offers for registering as a job seeker with the

employment placement business provider concerned, a worker who responded

to the recruitment concerned, or a worker supplied by the labor supply

provider concerned may report such fact to the Minister of Health, Labour and

Welfare and request that appropriate measures be taken.

(2) Upon receipt of the report set forth in the preceding paragraph, the Minister

of Health, Labour and Welfare shall conduct the necessary investigation, and

when he/she finds the contents of the report to be true, he/she shall take

measures based on this Act and other appropriate measures.

(Request for Reports)

Article 49 The administrative agencies may, when they find it to be necessary,

have persons who employ workers submit reports necessary for employment

security on such matters as the circumstances of hiring and separation of

workers, wages and any other working conditions.

(Reports and Inspections)

Article 50 (1) To the limit necessary for the implementation of this Act,

administrative agencies may, pursuant to the provisions of an Ordinance of the

Ministry of Health, Labour and Welfare, have persons who carry out

employment placement businesses, labor recruitment or labor supply

businesses report on necessary matters.

(2) To the limit necessary for the implementation of this Act, administrative

agencies may have their officials enter the place(s) of business or other

facilities of persons who carry out employment placement businesses, labor

recruitment or labor supply businesses, question persons concerned, and

inspect books and documents as well as other articles.

(3) The officials who conduct the on-site inspections set forth in the preceding

paragraph shall carry identification cards and present them to persons

concerned.

(4) The authority for on-site inspections provided for in the provisions of

paragraph 2 shall not be construed as approved for the purposes of criminal

investigation.

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(Duty to Maintain the Confidentiality of Secrets)

Article 51 (1) No fee-charging employment placement business provider nor any

agent, employee or any other worker thereof shall, without just cause, divulge

any personal secret learned with respect to any matter handled in the course of

his/her work. The same shall apply even after such person ceases to be a fee-

charging employment placement business provider or any agent, employee or

any other worker thereof.

(2) In addition to the secrets set forth in the preceding paragraph, no fee-

charging employment placement business provider nor any agent, employee or

any other worker thereof shall, without permission, inform anyone else of any

personal information learned concerning his/her work or any other information

concerning persons specified by an Ordinance of the Ministry of Health, Labour

and Welfare. The same shall apply even after such person ceases to be a fee-

charging employment placement business provider or any agent, employee, or

any other worker thereof.

Article 51-2 No person who conducts a free employment placement business

after obtaining the license provided for in Article 33, paragraph 1 or giving the

notification pursuant to the provisions of Article 33-2, paragraph 1, Article 33-

3, paragraph 1, or Article 33-4, paragraph 1, person who conducts labor

recruitment, commissioned recruiter or labor supply business provider

(hereinafter referred to as "free employment placement business provider, etc."

in this Article), person who engages in the work of a Public Employment

Security Office or person who engages in the work of a free employment

placement business provider, etc. shall, without permission, inform anyone else

of any personal information learned concerning his/her work or any other

information concerning persons specified by an Ordinance of the Ministry of

Health, Labour and Welfare. The same shall apply even after such person

ceases to be a free employment placement business provider, etc., a person who

engages in the work of a Public Employment Security Office or person who

engages in the work of a free employment placement business provider, etc.

(Consultation and Assistance)

Article 51-3 Public Employment Security Offices may offer consultation,

necessary advice and other assistance to job seekers, etc. with respect to

matters concerning employment placement, labor recruitment and labor supply.

(Education and Training of Officials)

Article 52 The government shall formulate a plan and establish necessary

facilities for the education and training of officials engaged in employment

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placement, vocational guidance and other affairs concerning the enforcement of

this Act conducted by the government.

(Publicizing of Businesses)

Article 52-2 The government shall formulate and endeavor to implement a plan

for publicizing employment placement, vocational guidance, and employment

insurance offered by the government and for publicizing the purpose of this Act.

(Liaison Between Government Agencies)

Article 53 When it is found to be necessary for coordinating affairs concerning

employment placement, vocational guidance, surveys of labor supply and

demand or labor recruitment provided in this Act between related government

agencies and for consulting on methods to realize the most effective utilization

of the nation's labor resources, the government may establish a liaison council.

(Liaison or Cooperation of the Minister of Justice)

Article 53-2 (1) In order to achieve the appropriate and smooth adjustment, etc.

of demand for and supply of the labor force, the Minister of Health, Labour and

Welfare may request the Minister of Justice for the necessary liaison and

cooperation regarding the migration of foreign nationals who reside in Japan

for the purpose of employment.

(2) Should the Minister of Justice receive a request regarding the liaison or

cooperation referred to set forth in the preceding paragraph, he/she shall, to

the extent possible, respond to the request in a way that does not interfere

with the performance of his/her duties.

(Guidance Concerning Hiring Methods, etc.)

Article 54 The Minister of Health, Labour and Welfare may give guidance to

factories, workplaces, etc with regard to increasing production efficiency by

improving methods of hiring workers and enhancing retention of labor at

enterprises.

Articles 55 to 59 Deletion

(Delegation of Authority)

Article 60 The authority of the Minister of Health, Labour and Welfare provided

in this Act may be delegated, pursuant to the provisions of an Ordinance of the

Ministry of Health, Labour and Welfare, to the Director-General of the

Employment Security Main Bureau or the Prefectural Labour Directors.

(Delegation to an Ordinance of the Ministry of Health, Labour and Welfare)

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Article 61 In addition to what is provided for in this Act, procedures and other

matters necessary for the implementation of this Act shall be specified by an

Ordinance of the Ministry of Health, Labour and Welfare.

(Exemption of Mariners)

Article 62 This Act shall not apply to mariners provided in Article 6, paragraph

1 of the Mariners' Employment Security Act.

Chapter V Penal Provisions

Article 63 A person who falls under any of the following items shall be punished

by imprisonment with work for not less than one year and not more than ten

years or a fine of not less than two hundred thousand yen and not more than

three million yen:

(i) a person who has carried out or engaged in employment placement, labor

recruitment or labor supply by means of violence, intimidation, confinement

or other unjust restraint on mental or physical freedom;

(ii) a person who has carried out or engaged in employment placement, labor

recruitment or labor supply with an intention of having workers do work

harmful to public health or morals.

Article 64 A person who falls under any of the following items shall be punished

by imprisonment with work for not more than one year or a fine of not more

than one million yen:

(i) a person who has violated the provisions of Article 30, paragraph 1;

(i)-2 a person who has obtained, through deception or other wrongful act, a

license under Article 30, paragraph 1, a renewal of the valid period of a

license under the provisions of Article 32-6, paragraph 2 (including the cases

where it is applied mutatis mutandis pursuant to Article 33, paragraph 4), a

license under Article 33, a paragraph 1, a license under Article 36-1,

paragraph 1, or a license under Article 45;

(ii) a person who has violated an order for suspension of the service or business

under the provisions of Article 32-9, paragraph 2 (including the cases where

it is applied mutatis mutandis pursuant to Article 33, paragraph 4, Article

33-2, paragraph 7, and Article 33-3, paragraph 2);

(iii) a person who has violated the provisions of Article 32-10 (including the

cases where it is applied mutatis mutandis pursuant to Article 33, paragraph

4, Article 33-2, paragraph 7, and Article 33-3, paragraph 2);

(iv) a person who has violated the provisions of Article 32-11;

(v) a person who has violated the provisions of Article 33, paragraph 1;

(vi) a person who has violated an order for abolition of the service or business

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under the provisions of Article 32-9, paragraph 1 as applied mutatis

mutandis pursuant to Article 33-3, paragraph 2;

(vii) a person who has violated the provisions of Article 36, paragraph 1;

(viii) a person who has violated an order for suspension of the businesses of

labor recruitment or the labor supply business under the provisions of Article

41, paragraph 1 (including the cases where it is applied mutatis mutandis

pursuant to Article 46) or for discontinuation or suspension of the businesses

of labor recruitment under the provisions of Article 41, paragraph 2;

(ix) a person who has violated the provisions of Article 44.

Article 65 A person who falls under any of the following items shall be punished

by imprisonment with work for not more than six months or a fine of not more

than three hundred thousand yen:

(i) a person who has violated the provisions of Article 11, paragraph 3;

(ii) a person who has violated the provisions of Article 32-3, paragraph 1 or

paragraph 2;

(iii) a person who has carried out a free employment placement business

without giving the notification provided for in Article 33-2 paragraph 1 or

Article 33-3, paragraph 1;

(iv) a person who has violated the provisions of Article 36, paragraph 2 or

paragraph 3;

(v) a person who has failed to comply with a restriction or instruction under

the provisions of Article 37;

(vi) a person who has violated the provisions of Article 39 or Article 40;

(vii) a person who has violated an order under the provisions of Article 48-3;

(viii) a person who has carried out or engaged in employment placement, labor

recruitment, or labor supply by placing a false advertisement or by

presenting false conditions;

(ix) a person who has carried out or engaged in employment placement, labor

recruitment, or labor supply for a factory, workplace, etc. of which working

conditions are in violation of a law or regulation.

Article 66 A person who falls under any of the following items shall be punished

by a fine of not more than three hundred thousand yen:

(i) a person who has submitted a written application or written notice provided

in Article 30, paragraph 2 (including the cases where it is applied mutatis

mutandis pursuant to Article 32-6, paragraph 6, Article 33, paragraph 4 and

paragraph 5, and Article 33-3, paragraph 2) or a document provided in

Article 30, paragraph 3 (including the cases where it is applied mutatis

mutandis pursuant to Article 32-6, paragraph 6, Article 33, paragraph 4 and

paragraph 5, and Article 33-3, paragraph 2) by stating false matters;

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(ii) a person who has violated an order under the provisions of Article 32-3,

paragraph 4;

(iii) a person who has failed to give the notification under the provisions of

Article 32-7, paragraph 1 (including the cases where it is applied mutatis

mutandis pursuant to Article 33, paragraph 4 and Article 33-3, paragraph 2)

or has given false notification, or has submitted a document provided in

Article 32-7, paragraph 1 (including the cases where it is applied mutatis

mutandis pursuant to Article 33, paragraph 4 and Article 33-3, paragraph 2)

by stating false matters;

(iv) a person who has failed to give the notification under the provisions of

Article 32-8, paragraph 1 (including the cases where it is applied mutatis

mutandis pursuant to Article 33, paragraph 4, Article 33-2, paragraph 7, and

Article 33-3, paragraph 2) or has given false notification;

(v) a person who has violated the provisions of Article 32-14 (including the

cases where it is applied mutatis mutandis pursuant to Article 33, paragraph

4 and Article 33-3, paragraph 2);

(vi) a person who has failed to prepare or keep at a place(s) of business books

and documents in violation of the provisions of Article 32-15 (including the

cases where it is applied mutatis mutandis pursuant to Article 33, paragraph

4, Article 33-2, paragraph 7, and Article 33-3, paragraph 2), or a person who

has prepared false books and documents;

(vii) a person who has failed to make a report under the provisions of Article 49

or Article 50, paragraph 1, or has made a false report;

(viii) a person who has refused, obstructed or evaded an entry or inspection

under the provisions of Article 50, paragraph 2, or has failed to answer a

question under said provisions or made a false statement; or

(ix) a person who has violated the provisions of Article 51, paragraph 1.

Article 67 When the representative person of a juridical person or an agent,

employee or any other worker of a juridical person or an individual has

committed an act in violation of Article 63 to the preceding Article with respect

to the business of said juridical person or individual, not only the offender

shall be punished, but also said juridical person or individual shall be punished

by the fine prescribed in the respective Articles.

Supplementary Provisions

(1) This Act shall come into effect as from December 1, 1947.

(2) A person who was providing employment placement businesses or labor

supply businesses at the time of enforcement of this Act by obtaining the

approval of an administrative agency may continue to provide said businesses

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only for three months after the enforcement of this Act.

(3) The Employment Placement Act (Act No. 61 of April 1938) shall be abolished.

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