{"id":49200,"date":"2025-06-11T12:32:21","date_gmt":"2025-06-11T12:32:21","guid":{"rendered":"https:\/\/my.legal500.com\/developments\/?post_type=legal_developments&#038;p=49200"},"modified":"2025-06-11T12:32:21","modified_gmt":"2025-06-11T12:32:21","slug":"changes-to-whistleblower-protection-act-approved","status":"publish","type":"legal_developments","link":"https:\/\/my.legal500.com\/developments\/thought-leadership\/changes-to-whistleblower-protection-act-approved\/","title":{"rendered":"Changes to Whistleblower Protection Act Approved"},"content":{"rendered":"<p><strong>On June 5, 2025 the House of Councilors approved an amendment to Whistleblower Protection Act (\u201cAct\u201d) which strengthens whistleblower protections. The amendment will be promulgated in the near future and the amendment will take effect on some date which will be within 1 year and 6 months from the date of promulgation. The following chart shows the key amendments. For more information, please feel free to contact us.<\/strong><\/p>\n<p><!--more--><\/p>\n<h3>Protected Persons<\/h3>\n<p><u>Current Law<\/u><\/p>\n<ul>\n<li>Employees (full-time and part-time)<\/li>\n<li>Dispatched Workers<\/li>\n<li>Executive Officers<\/li>\n<li>Former Employees and Dispatched Workers (who have left within the last year)<\/li>\n<\/ul>\n<p><u>After Amendments<\/u><\/p>\n<ul>\n<li>Employees (full-time and part-time)<\/li>\n<li>Dispatched Workers<\/li>\n<li>Executive Officers<\/li>\n<li>Former Employees and Dispatched Workers (who have left within the last year)<\/li>\n<li><strong>Freelance Workers and Former Freelance Workers whose contract has ended within the last year)<\/strong><\/li>\n<\/ul>\n<h3>Definition of Whistleblowing<\/h3>\n<p><u>Current Law<\/u><\/p>\n<p>Reports of misconduct that fulfill certain requirements related to criminal acts or violations of designated laws are protected. Harassment claims are not considered whistleblowing.<\/p>\n<p>*Note there are a number of violations that are included and a company should confirm, which violations fall under whistleblowing.<\/p>\n<p><u>After Amendments<\/u><\/p>\n<p>Certain violations of this Act will also be considered whistleblowing.<\/p>\n<h3>Identification Protections<\/h3>\n<p><u>Current Law<\/u><\/p>\n<p>No current restrictions.<\/p>\n<p><u>After Amendments<\/u><\/p>\n<p>Identifying a whistleblower without a valid reason is prohibited.<\/p>\n<h3>Disadvantageous Treatments, Dismissal &amp; Disciplinary Action Presumptions<\/h3>\n<p><u>Current Law<\/u><\/p>\n<p><strong>Invalidation <\/strong><\/p>\n<p>Dismissing employees\/terminating worker dispatch agreements on the basis of the whistleblowing is invalid.<\/p>\n<p><strong>Prohibition <\/strong><\/p>\n<p>Any disadvantageous treatments* to whistleblowers on the basis of the whistle blowing are prohibited.<\/p>\n<p>*Disadvantageous treatment can include transfers, secondments, etc.<\/p>\n<p><u>After Amendments<\/u><\/p>\n<p><strong>Invalidation<\/strong><\/p>\n<p>Dismissals, termination of dispatch worker contracts and<strong> disciplinary actions <\/strong>made on the basis of the whistleblowing are invalid.<\/p>\n<p><strong>Newly Added Presumption for Invalidation:<\/strong><\/p>\n<p><strong>Dismissals or disciplinary actions to employees which occur within one year<\/strong> after the whistleblowing report is made would be presumed to have been made on the basis of whistleblowing and the company would have the <strong>burden of proof <\/strong>to prove that the action was <strong>not done \u201con the basis of\u201d<\/strong> the whistleblowing. Dismissals or disciplinary actions which are deemed to be made \u201con the basis of\u201d are considered invalid.<\/p>\n<h3>Whistleblowing Obstruction<\/h3>\n<p><u>Current Law<\/u><\/p>\n<p>No current restrictions.<\/p>\n<p><u>After Amendments<\/u><\/p>\n<p>Unless there is a valid reason, preventing or disincentivizing someone from making a whistleblowing report, such as by demanding an individual agree to not make a report, telling an individual that he\/she will be treated disadvantageously, etc. is prohibited.<\/p>\n<h3>Criminal Sanctions for Dismissal and Disciplinary Action<\/h3>\n<p><u>Current Law<\/u><\/p>\n<p>Currently no criminal sanctions for dismissal and disadvantageous treatment<\/p>\n<p><u>After Amendments<\/u><\/p>\n<p><strong>Newly Added Criminal Sanctions*<\/strong> for dismissals and disciplinary action on the basis of the whistleblowing:<\/p>\n<p>To individuals<\/p>\n<ul>\n<li>Imprisonment of up to 6 months, or<\/li>\n<li>Fine of up to 300,000 JPY<\/li>\n<\/ul>\n<p>To companies<\/p>\n<ul>\n<li>Fine of up to 30,000,000 JPY<\/li>\n<\/ul>\n<p>*Note the \u201con the basis of\u201d presumption does not apply to criminal cases.<\/p>\n<h3>Applicability to Companies<\/h3>\n<p><u>Current Law<\/u><\/p>\n<p><strong>Large Companies (300+ Employees):<\/strong><\/p>\n<p>Must establish internal reporting systems and designate responsible personnel.<\/p>\n<p><strong>Small Companies (&lt;300 Employees):<\/strong><\/p>\n<p>Not legally required to establish a reporting system, but must still respond appropriately if a report is made.<\/p>\n<p><u>After Amendments<\/u><\/p>\n<p>No Change<\/p>\n<p>Designating Responsible Personnel (300+ Employees)<\/p>\n<p><u>Current Law<\/u><\/p>\n<p><strong>Administrative Measures<\/strong><\/p>\n<p>For failure to designate responsible personnel, the following administrative measures can be taken:<\/p>\n<ul>\n<li>Administrative instructions<\/li>\n<li>Administrative recommendations<\/li>\n<\/ul>\n<p><u>After Amendments<\/u><\/p>\n<p><strong>Administrative Measures<\/strong><\/p>\n<p>For failure to designate responsible personnel, the following administrative measures can be taken:<\/p>\n<ul>\n<li>Administrative instructions<\/li>\n<li>Administrative recommendations<\/li>\n<li><strong>On-site inspections<\/strong><\/li>\n<li><strong>Administrative orders for non-compliance of administrative recommendations<\/strong><\/li>\n<\/ul>\n<p><strong>Criminal Sanctions (Newly Added)<\/strong><\/p>\n<p>Fine up to 300,000\u3000JPY can be imposed for:<\/p>\n<ul>\n<li>Noncompliance of the administrative order<\/li>\n<li>False Reporting\/non-reporting when required<\/li>\n<li>Inspection refusal<\/li>\n<\/ul>\n","protected":false},"featured_media":0,"template":"","class_list":["post-49200","legal_developments","type-legal_developments","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/legal_developments\/49200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/legal_developments"}],"about":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/types\/legal_developments"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/media?parent=49200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}