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🇯🇵 JapanLabor Law··2 min read

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.

🇯🇵 Japan · Labor Law

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.

Source · MHLWPublished 2026-04-22

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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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