Enforcement Of Act On Special Measures Concerning Fixed-Term Employees With Expert Knowledge, Etc.

On April 1, 2015, the Act on Special Measures concerning Fixed-Term Employees with Expert Knowledge, etc. (the "Act") came into force. The Act provides for certain exceptions to the "rule of conversion into indefinite-term contracts." This rule, contained in the Labor Contract Act, provides that an employee may convert a fixed-term contract into an indefinite-term contract if the fixed-term contract has been renewed for five years or more in the aggregate. Specifically, the Act exempts from this rule (i) certain employees with a high level of expert knowledge, skill, or experience ("High-Level Experts"), and (ii) employees who are continuously employed after they have reached retirement age ("Continuously Employed Elderly Employees"). Those exemptions apply only if the employer obtains approval of the employer's plan concerning employment management measures that enable employees to fulfill their potential effectively from the Minister of Health, Welfare and Labor.