TOKYO -- The Japanese government will ask companies that prohibit their employees from taking a second job to explain their reasons, starting in July, Nikkei has learned, in a move aimed at encouraging more large companies to allow their employees to hold such jobs.
The rule is not mandatory, and companies that decline to provide reasons will not face a penalty. However, the government hopes to work with Keidanren, Japan's powerful business lobby, to urge more large companies, which have traditionally been cautious about allowing their employees to have a second job, to respond favorably to the request.
The government hopes that such disclosure will help job seekers find companies that are more open about side work. It also hopes this will foster greater diversity in Japan's work practices and encourage talent to move into growth areas.
The current government guidelines urge companies to allow their employees to take second jobs, in principle. However, many employers remain cautious, fearing that letting workers engage in side gigs will lead to poor performance, or that their skills and credibility might be used for moonlighting more than in their main jobs.
The guidelines also say companies can ban second jobs if they put an employee's safety or company secrets at risk, or for other reasons. The government will amend the guidelines and ask companies to disclose their stance on side jobs, and, in cases where they ban such work, their reasons for doing so.
The Japanese government will encourage companies to publicly announce their stance on employees' second jobs on their websites so investors and others can see it.
The move comes as the government hopes more human resources will shift to growth areas if more employees work a side job. The government will pour 400 billion yen ($2.9 billion) into career development support in the next three years and encourage workers to acquire the skills they need.
According to cloud sourcing company Lancers, an estimated 8.12 million workers in Japan worked a second job in 2021, up 15% from the previous year and accounting for around 10% of total workers in the country.
Workers often learn new skills through their second job. As teleworking has become more common, many people find it easier to juggle two jobs. This can be beneficial to their primary employers too, as their employees can bring new skills and knowledge that helps them grow or come up with new ideas for their own new projects.
In Western countries, many employers allow their employees to have a second job. In Germany and U.K., companies are not allowed to restrict employees from working a second job unless they want to work for a competitor or rival company. In the U.S., there are no legal bars on a second job and employees can engage in a second job if they want, in principle.
A survey conducted by Persol Research and Consulting in 2021 found that only 23.7% of Japanese companies fully allow employees to work a second job while 31.3% allow with conditions. Some large companies, including Kirin Holdings, Mitsubishi Estate and IHI, have started allowing their employees to have side jobs.
The government is also working on making rules to protect workers. In September 2020, it established rules for workers to report overtime hours in advance to their primary and secondary employers, in a move to prevent overwork.
Some companies have made their own rules to respond to overwork issues. Unicharm bans employees from engaging in side jobs after midnight both on weekdays and weekends. The company also checks its employees' health condition and progress of side jobs in quarterly meetings with their superiors. Japan's top potato chip maker Calbee asks its employees to submit their work schedules at their secondary job.