Japan tightens overtime cap enforcement for SMBs
Labor inspectors will prioritize SMB compliance checks on the 45-hour monthly overtime cap this fiscal year.
Enforcement is the change, not the rule. The 45-hour cap has been on the books — what is new is that the Labor Standards Inspection Office is specifically resourcing SMB sweeps this fiscal year.
If you have engineering staff in Japan, expect that any month with a major release will need active management. Document each instance of approved overtime above 45 hours, and the business justification.
What this means for solo HR
If your Japan team logs hours by spreadsheet, switch to a system that flags the cap automatically. Fines start at ¥300,000.
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Japan tightens overtime cap enforcement for SMBs If your Japan team logs hours by spreadsheet, switch to a system that flags the cap automatically. Fines start at ¥300,000. Full read on HR Asia → https://hrasia.co/news/japan-overtime-cap-smb
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