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Dismissal Compensation and Labor Mobility in Japan

In: Severance Payment and Labor Mobility

Author

Listed:
  • Naohiro Yashiro

    (Showa Women’s University)

Abstract

This chapter discusses the economic impact of the employment law of Japan for large and small firms. It describes in detail the settlement process when employers and employees do not agree on the termination condition. It also advocates statutory monetary compensation because, in small firms, the cost to obtain legal protection from dismissal is high relative to the workers’ income. Therefore, the introduction of severance payment rule would increase mobility in the labor market. It may even contribute to the removal of mandatory retirement, a practice still legal in Japan.

Suggested Citation

  • Naohiro Yashiro, 2018. "Dismissal Compensation and Labor Mobility in Japan," Economics, Law, and Institutions in Asia Pacific, in: Tatsuo Hatta & Shinya Ouchi (ed.), Severance Payment and Labor Mobility, chapter 0, pages 17-38, Springer.
    • Handle: RePEc:spr:eclchp:978-981-13-2149-8_2
    DOI: 10.1007/978-981-13-2149-8_2
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