Workers at Kurosawa Sangyo Co., a tire recycling company, work on Wednesday, Aug. 26, 2026, in Chikusei, north of Tokyo. (AP Photo)
Japan is easing overtime regulation in a move meant to help spur economic growth but criticized as a relapse into the country's ingrained workaholic culture.
The move comes after the government led by Prime Minister Sanae Takaichi — a self-proclaimed workaholic — adopted a growth strategy in July calling for revisions to the current oversight of work hours.
The change in part reflects calls from certain business sectors for more flexible work styles as they grapple with a deepening labor shortage.
Roughly 40 percent of businesses in Japan are operating under specific labor-management agreements that legally allow monthly overtime of up to 100 hours, according to the Labor Ministry.
But those companies were still advised by authorities to cap overtime at 45 hours each month, with that guidance considered on par with regulation.
That was because exceeding that threshold can increase risks for so-called "karoshi", or deaths from overwork, a labor ministry official told AFP.
Under the new rule that took effect on Sept. 1, labor standards inspection offices will no longer pressure businesses into the 45-hour cap.
A Japan Chamber of Commerce and Industry survey showed in May that this pressure was "restricting" activity of around 20 percent of Japan's small and mid-sized businesses, especially in short-staffed industries such as construction, transport and hospitality.
Critics, however, said the move reversed steps taken by Japan to modernize its corporate culture long centered around marathon work hours.
