UT Group Co., Ltd.

Revised Worker Dispatch Law: Impacts and Measures [for Dispatch Workers]


UT Group is actively promoting regular employment so that all of our employees can work free from anxiety on a stable basis.

Revised Worker Dispatch Law: Impacts and Measures [for Dispatch Workers]

1. Summary of the Revised Worker Dispatch Law (enacted on September 30, 2015)

【1】Creation of a sounder dispatch business
The notification system was abolished and the license system was adopted.
【2】Stable employment and career advancement opportunities for dispatch workers
Obligations of dispatch companies
  • Provision of systematic training programs;
  • Provision of career consulting if requested by dispatch workers;
  • Adoption of measures to stabilize employment of dispatch workers after conclusion of term of employment (obligation after the three-year period concludes and efforts to be made when the period is 1-3 years)
    1. Asking corporate clients to hire workers directly;
    2. Provision of new corporate client for employment;
    3. Offering of open-ended employment at the dispatcher; and
    4. Adoption of other measures required to provide continuous, stable employment.
【3】Clarification of the positioning of worker dispatch
Clarified as temporary and tentative
【4】Easier-to-understand regulation on dispatch duration
Introduction of a new three-year limit for dispatch workers in the 26 specified job categories
  • A new three-year limit
  • The dispatcher is obliged to ask the opinion of a majority labor union to receive a dispatch worker after the three-year term
  • If the opinion is raised, the dispatcher is obliged to explain its response, etc.
Categories 26 specified job categories
Clerical work Operation of business equipment: Filing; Secretarial work; Financial arrangement; Business document preparation; Research
Technology OA instructors; Software development; Machinery design; Research and development
Media Editing work in producing books; Advertising design; Announcers; Operation of broadcasting equipment; Production of broadcast programs; Stage sets and props designers and coordinators for broadcast programs
Service and sales Demonstrations of machinery; Telemarketing; Tour conducting work; Sales engineer; financial products sales; Building cleaning work; Operation, checking, and maintenance of building equipment; Reception and guide services, parking management
Others Interpretation, translation, and shorthand writing work; Planning of the development of business operation systems; Interior coordinators
【5】More equitable treatment of dispatch workers compared to direct-hire employees)
Prevention of extension of dispatch work by changing the worker. (Prevention of immobilization of dispatch worker; prevention of replacement of a regular worker with a dispatch worker); both the dispatcher and the client company have to enhance measures to ensure more equitable treatment of dispatch workers (There is a move to promote a bill to ensure the same wage for the same work.)
【6】Provisions
The law will be revised three years after its enactment.
In light of the trend in the number of regular employees and dispatch workers, and if there is a risk of impairment of employment practices that contribute to the stable employment and effective demonstration of workers’ abilities, research and other measures shall be taken to promptly review how to ensure more equitable treatment.

2. Issues associated with the Revised Worker Dispatch Law

Dispatch workers have to change the client company every three years.

再雇用
Before the revision, dispatch workers could continue to work at the same company for many years. After the revision, dispatch workers cannot work at the same workplace for more than three years.
仕事紹介
Dispatch workers have to find work every three years but older you get, harder to receive more job offers.
正社員登用
Host employers (client companies) can keep using alternate dispatched worker every three years, they may become less inclined to hire regular employees.
キャリアアップ
Host employers are less likely to give dispatch workers opportunities to develop skills or careers, due to their three-year limit.

3. Measures to be taken by dispatch workers

Revised matters Details Measures to be taken by dispatch workers Actions taken by UT Group
1.Creation of a sounder dispatch business ◯ License system
× Notification system
Have a contract with a dispatch company with a license, not with a company that operates under the notification system, as it may discontinue or sell their business. Changed to the license system.
2. Stable employment and career advance opportunities for dispatch workers Provide systematic training programs and career consulting Ask the host company for regular employee employment. Implemented stepwise systematic training plans and career consulting
Ask the dispatch company for termless employment (regular employee dispatch.)
Find a new workplace every three years.
Take measures to stabilize employment of dispatch workers after term concludes Aim to be employed as regular employee, not dispatch worker. Termless employment (regular employee dispatch)
In the case a dispatch worker wants to work in the same workplace for more than three years, ask the dispatch company to get opinion of a majority labor union of the client company at the time of contract extension.
If opposition is raised, ask the dispatch company what action to be taken.
3.Clarification of the positioning of worker dispatch As temporary and tentative Promote termless employment contract Systematic support for diverse career development
4. Easier-to-understand regulation on dispatch duration New three-year limit for dispatch workers in 26 specified job categories Ask the opinion of a majority labor union of a client company No need to change as termless employment has been adopted
Obliged to explain what action to take, if opposition is raised.
5. More equitable treatment of dispatch workers Requirement to be attentive to more equitable treatment Ask the dispatch company to explain attentive arrangement as desired. Explain attentive arrangement as desired by a dispatch worker

4. Actions taken by UT Group

UT Group’s Mission and Strategy

20 years of growth since foundation

Achievement in volume: Manufacturing dispatch

Balanced client portfolio, while maintaining semiconductors as No. 1 client sector

Achievement in volume: Engineer dispatch

Build an infrastructure to become a top group three years after start-up

chievement in quality: Management resources (VRIO analysis)

Have both a system to support career development and to timely provide superior employees

Value provided
Value for employees
Combine career development and fluctuation adjustment
Stable employment based on achievement of area dominance
Value for corporations
Nationwide work force: 3,000 applicants and 500 hires per month
Skill enhancement based on a high retention rate → Higher productivity
Rareness
The only leading manufacturing dispatch company centered on regular employee dispatch
Expected to benefit most from abolition of termless employment dispatch due to the revised WDL
Imitability
Unique know-how in regular employee dispatch
Low turnover rate
Monthly turnover rate Industry average 8% vs. UT Group 3-4%
Ability to deploy know-how nationwide
Organization
Unique organization to support regular employees
Entry System for Executive Positions
Career development support
System to raise technical skills, based on a low turnover rate
Skill enhancement based on a high retention rate → Higher productivity
Career advancement in different jobs (job change)

Achievement in quality: Career development support

Systemization
System to support career development and to timely provide quality workers
Job change
Career change from manufacturing outsourced worker to engineer
Transfer to a client company
Transfer by a hundred workers to regular employees of a client company
Opportunity for promotion
Executive entry system for dispatch workers
Diversity and stability
Early promotion, expertise, work-life balance, stable employment

Present initiatives to enhance functions

The industry’s most systematic, diverse, proven career development structure

Strategy orientation to enhance functions

Coping with the Revised Worker Dispatch Law

UT Group will derive the maximum benefit from the revised law.

Materials for downloading

Reference materials on the Revision of Worker Dispatch Law are available.

Download

* The link site is only available in Japanese text.

Companies who are thinking about termless dispatch (regular employee dispatch) and companies who are considering corporate transfers or sales should please feel free to contact the Business Development Department of UT Group.

03-5447-1711

Available from 9:00 to 18:00,
except Saturdays, Sundays, and holidays

Inquiry form

* The link site is only available in Japanese text.