To: Don Green who wrote (979 ) 10/15/2002 7:54:42 PM From: Don Green Respond to of 48848 Govt To Require Firms To Have 'Valid Reasons' For Firing Workers Wednesday, October 16, 2002 TOKYO (Nikkei)--The Ministry of Health, Labor and Welfare Tuesday proposed inserting a rule prohibiting companies from firing employees without valid reasons into the Labor Standards Law. The rule, proposed at a meeting of the Labor Policy Council, an advisory panel to the health minister, would allow dismissed employees, who are dissatisfied with how they were fired, to settle lawsuits through damage payments by their former employers, if a court rules the dismissal to have been invalid. Currently, even if a court comes up with such a verdict, the only way to compensate a dismissed employee is to allow them to return to their former workplace. For employers, the new rule could be construed as legalizing employee dismissals. For employees, meanwhile, it could be seen as making it impossible for employers to fire employees without a valid reason. The ministry expects the rule to curb easy employee dismissals, while making it easier for employers to fire problematic employees. Currently, the Labor Standards Law forces companies dismissing employees to give them either 30-days notice or pay them compensation worth at least 30 days. It does not mention the terms of their dismissals, leaving the decision on the validity of their dismissals to the courts. European countries, such as Germany, have a law allowing the settlement of a legal battle between former employees and employers via monetary payments. The labor ministry is set to submit a related bill to the next regular Diet session to be convened in January. (The Nihon Keizai Shimbun Wednesday morning edition)