Context: Japan has eased enforcement of overtime limits to address a severe labour shortage and support economic growth, effective September 2026.
Around 40% of Japanese businesses operate under labour-management agreements permitting up to 100 hours of overtime per month in specified circumstances.
Authorities had advised these firms to keep overtime within 45 hours/month, citing the risk of Karoshi, meaning death caused by overwork.
Under the new rule, labour standards inspection offices will no longer pressure businesses to maintain the 45-hour limit.
The change particularly affects construction, transport and hospitality, where labour shortages are acute.
Prelims:Karoshi is a Japanese term referring to death resulting from overwork, commonly associated with excessive working hours and work-related stress.
