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Labor Policy

This article provides a historical overview of Japan's unemployment insurance system, detailing significant legislative milestones from the adoption of ILO Convention No. 44 in 1934 to the Employment Insurance Law revisions. Key developments include the 1947 Unemployment Insurance Law, adjustments to the benefit terms based on service length and age, and the introduction of various employment-related benefits, such as Childcare Leave Benefits and Continued Employment Benefits. The article also discusses the legal nature of unemployment benefits as social insurance and employment policy instruments aimed at reintegrating jobless individuals into the workforce.

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Labor Policy

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  1. Labor Policy Keiichiro HAMAGUCHI

  2. Chapter 2 Labor Market Policy

  3. Section 2 Employment insurance system

  4. Unemployment Benefit(a) Historical Overview • ILO Convention No. 44 on unemployment benefit adopted in 1934. • Retirement Funds and Retirement Allowances Law enacted in 1936. • Unemployment Insurance Law enacted in 1947. • Term of benefit: 180 days.

  5. 1955 revised UI Law distributed the term of benefit from 90 to 270 days according to length of service. • 1974 Employment Insurance Law distributed the term of benefit from 90 to 300 days according to age. • 1984 revised EI Law introduced length of service again. • 2000 revised EI Law introduced reason of job loss (voluntary quit: 180 days).

  6. (b) Legal nature of unemployment benefit • As a social insurance scheme: to compensate the lost income of the jobless • As an employment policy instrument: to assist the jobless to be re-employed • Subjective requirement of willing to work is difficult to distinguish from pretending. • Moral hazard has been the central issue.

  7. Benefit rate of basic allowance

  8. Term of benefits for the ordinary unemployed

  9. Term of benefits for the unemployed as a result of bankruptcy or dismissal, etc.

  10. (2) Employment-related benefits • Childcare Leave Benefits are paid to workers who take childcare leave under 1 (benefit rate: 25%, 40% in 2000, 50% in 2007 revision). • Continued Employment Benefits for Older Workers are paid to older workers working after mandatory retirement age (benefit rate: 25%, down to 15% in 2003). • Educational Training Benefits are paid to workers who take training course (benefit rate: 80%, 40% in 2003, 20% in 2007 revision).

  11. (3) Employment subsidies • Employment Adjustment Subsidy is paid to employers who, without dismissals, adopt measures as temporary leave with pay, in-house training, temporary transfer to other companies (half of paid wages). • Specified Job Applicant Employment Development Subsidy • Regional Employment Development Subsidy • Career Formation Promotion Subsidy

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