Japanese Employment Law Update (By Mariko Eto and Mamiko Omura)

In this issue, we provide a summary of a recent court decision on a case involving a dismissal for redundancy in a multi-national company. As we reported in our twenty-third Japanese Employment Law Update, there are strict requirements on dismissals in Japan. This decision demonstrates that the same requirements imposed on dismissals by Japanese companies extend to dismissals for redundancy in foreign-owned companies. The decision suggests a need to review the content of employment agreements considered common in Japan if companies expect to dismiss an employee when the need arises.