Limited-term employees to be hired up to 10 years

Limited-term employees to be hired up to 10 years

JAPAN - To help companies secure the services of such professionals as lawyers, certified accountants and experts with a master's or doctor's degree, the government plans to double the current five-year limit on their contract terms, sources said Thursday.

Under the existing Labor Contract Law, employers must change the status of a limited-term employee who has worked for more than five years, if he or she wishes, to that of a regular employee with no contract term. If the law is altered to allow up to 10 years on their contract terms, companies doing work related to the 2020 Tokyo Olympics, for example, will be able to retain limited-term employees until the Games.

The government originally planned to ease the five-year rule only in national strategic special zones, where various regulations will be relaxed. However, it changed tack in the face of criticism that such a move would hinder fair competition.

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