Advanced Professional System

The Advanced Professional System is designed for employees who have a high level of expertise, a clear scope of work and a certain level of annual income. Pursuant to a resolution of the labor-management committee and the consent of the worker, we may take measures to ensure health and welfare and to secure 104 or more days off per year, so that the provisions provided for in the Labor Standards Act concerning working hours, days off, rest periods, and late-night premium wages may not apply. Therefore, some people criticize it as a "Zero overtime pay system" because it can legally reduce overtime pay.

Salaries are determined not by working hours but by performance and apply only to workers with an annual income of 10.75 million yen or more. It is also used in the United States and the United Kingdom, and is sometimes called "white collar exemption"

In Japan, the first Abe administration tried to submit a bill as "White-color Execution" but it was not approved due to criticism from labor unions and opposition parties. Typical occupations covered include research and development, analysts, consultants, financial product development, and financial product dealers.

Doctors, certified public accountants, and lawyers, who are well known for their high incomes and have a high level of knowledge, are not covered by the system because it is difficult to leave working hours to their discretion.

Flow of Introduction of the Advanced Professional System

1. Establish a labor-management committee

Half of the members are labor representatives, and the minutes of the committee meetings should be prepared and preserved, and the workers at the workplace should be well informed.

2. Adopt by the labor-management committee

A majority vote is taken by at least 4/5 of the members. The resolutions include the following points.

Target Business

Scope of the covered workers
Method of ascertaining the hours of health care for the subject workers
Subject workers shall be provided with at least 104 days off per year and at least four days off in four weeks
Selective Measures for Subject Workers
Measures to Ensure Health and Welfare of Subject Workers in Accordance with Their Hours of Health Care
Procedures related to withdrawal of the committee of the subject worker, implementation of measures to handle complaints of the subject worker, and the details thereof
That workers who do not consent shall not be treated in a disadvantageous manner
Other matters as prescribed by an Ordinance of the Ministry of Health, Labour and Welfare (Term of validity of resolution, etc.)

3. Submit the resolution to the Chief of the Labour Standards Inspection Office

4. Obtain the consent of the Subject Worker in writing

mployers must obtain the worker's consent by obtaining the worker's signature on a document that clarifies the following three points:

A statement to the effect that the provisions of Chapter IV of the Labor Standards Act shall not apply to the case where the consent has been given
Period for which consent is required
Amount of wages expected to be paid during the period subject to consent

5. Assign target workers to target jobs

In the course of the operation, the employer shall report to the Chief of the competent Labour Standards Inspection Office every 6 months or less a part (Ascertaining the hours of health care for the subject workers; providing the subject workers with days off; and implementing selective measures for the subject workers and measures to ensure their health and welfare) of the contents of the resolution of the Labor-Management Committee mentioned in 2.

In addition, subject workers may withdraw their consent during the period for which they are subject to consent.

Benefits and disadvantages for each position

Benefits for workers

With the introduction of the advanced professional system, workers can freely decide their working and leaving hours, so they can spend their spare time not only on work, but also on domestic tasks such as childcare, hobbies, and nursing care. As a result, it is expected that work and life will be harmonized.

Benefits for companies

Under the Advanced Professional System, workers are encouraged to work in an effort to achieve results in a short period of time, which can improve the productivity of the entire company. Also, companies do not have to pay for overtime, which leads to cost reduction.

Disadvantages for part of workers

The Advanced Professional System allows employees to work shorter hours if they achieve results. In other words, unpaid overtime may become rampant because working hours may increase unless results are achieved. There is also concern about adverse health effects due to the lack of work hours restrictions.

Disadvantages for companies

Depending on the type of job in which the advanced professional system is applied, the evaluation standard of the result of the worker is vague, and there may be individual difference in the result of the evaluation and the worker may be dissatisfied.

Summary

The Advanced Professional System is intended for workers who have a high level of expertise, a clear scope of work and a certain level of income requirements.
Working hours may be shorter or longer under the advanced professional system.