Japan eases overtime oversight as labour shortages deepen

The move has sparked concerns that Japan could be backtracking on work-style reforms aimed at tackling excessive working hours and preventing karōshi.

Japan has relaxed its approach to overtime oversight, ending its long-standing practice of urging companies to keep monthly overtime below 45 hours even when longer working hours are legally permitted, according to multiple media reports.

From 1 September 2026, Labour Standards Inspection Offices will no longer uniformly pressure companies to adhere to the 45-hour monthly overtime benchmark. Employers with valid labour-management agreements may continue to require employees to work up to the legal ceiling of 100 hours of overtime per month.

The move follows a growth strategy adopted by Prime Minister Sanae Takaichi's government in July and comes amidst growing calls from business groups for greater labour flexibility as employers grapple with persistent labour shortages, particularly in the construction, transportation, and hospitality sectors.

Under Japan's labour laws, standard working hours are capped at eight hours per day and 40 hours per week. Employers that have concluded a labour-management agreement may require employees to work up to 45 hours of overtime per month, while special agreements allow overtime of up to 100 hours per month, including work on holidays.

However, due to concerns over karōshi, or death from overwork, authorities have continued urging companies to keep overtime within the 45-hour monthly benchmark, with the guidance often treated as effectively equivalent to regulation.

Under revised guidelines issued by Japan's labour ministry on 19 August 2026, inspections will now instead focus on whether companies have implemented adequate measures to protect employees’ health and prevent overwork-related illnesses, such as providing sufficient rest periods between shifts and arranging medical consultations for employees working long hours, according to The Japan Times.

The policy change has reignited debate over whether Japan is retreating from the work-style reforms introduced in recent years to address excessive working hours.

According to Agence France-Presse, as cited by the South China Morning Post, the National Confederation of Trade Unions in Tokyo, commonly known as Zenroren, described it as “an unacceptable shift away from, and abolition of, the policy that urged companies to shorten work hours”.

The Japan Times also cited a statement from a group of lawyers representing karōshi victims, which strongly protested the move and called it “a gross affront to the work-style reform, which the government and the labor ministry have pushed for”.

Questions about whether Japan is backtracking on its work-style reforms have also been fuelled by Takaichi's own remarks on work. In her post-election speech last October, she pledged to “work, work, work, work and work”, and has recently drawn criticism after saying she typically sleeps “zero to three hours” a night because of work.