Enterprises are at the center of economic activity. They carry out production and create employment. Workers' rights are protected by law.
Basic Knowledge
Classification of enterprises:
・Public enterprises (nationally or locally operated): water services, municipal buses, and so on
・Private enterprises: individual businesses and companies (joint-stock companies, limited liability companies, and so on)
A joint-stock company raises funds by issuing shares. Shareholders have voting rights at the general meeting of shareholders and receive dividends. Management is carried out by the board of directors, and the separation of ownership and management is a characteristic feature.
The three labor laws that protect workers (the three labor laws) are: the Labor Standards Act (minimum standards for working conditions), the Labor Union Act (guaranteeing union activities), and the Labor Relations Adjustment Act (resolving labor disputes).
Main provisions of the Labor Standards Act include: 40 hours of work per week, 8 hours per day, minimum wages, equal pay for men and women, and a ban on child labor.
Joint-stock company (a form of company that raises funds by issuing shares)
General meeting of shareholders (the highest body in which shareholders decide important management matters)
Dividend (a portion of company profits distributed to shareholders)
Labor Standards Act (a law establishing minimum standards for working conditions)
Minimum Wage Act (establishing minimum wages by region and industry)
CSR (Corporate Social Responsibility = a company's social responsibility)
In Depth (Background and Significance)
Enterprises are expected not only to pursue profits but also to fulfill their social responsibility (CSR). This includes environmental consideration, contributions to local communities, compliance (observance of laws and regulations), and mecénat (support for culture).
Issues in the workplace include the increase in nonregular employment (part-time, temporary agency, and contract workers), long working hours, work-life balance, gender inequality, and foreign workers. The Work Style Reform Laws (2018) established regulations limiting overtime and equal pay for equal work. Diverse work styles, such as telework and side jobs, are also spreading.
- Joint-stock company = raising funds by issuing shares and separating ownership from management
- Shareholders have voting rights and receive dividends according to their investment
- The three labor laws = Labor Standards Act, Labor Union Act, and Labor Relations Adjustment Act
- The three labor rights = organization, collective bargaining, and collective action (Article 28)
- Labor Standards Act = 40 hours per week and 8 hours per day
- CSR = corporate social responsibility
- Work Style Reform Laws 2018
Points to Note (Easily Confused)
① Distinguish the three labor laws (names of laws) from the three labor rights (rights under Article 28 of the Constitution). ② Shareholders have limited liability up to the amount invested. ③ There is an inequality problem between regular employment and nonregular employment (part-time, temporary agency, and contract work). ④ The Labor Standards Act sets minimum standards, and employment contracts below these standards are invalid.
Practice
- Give all three labor laws.
- Explain the “separation of ownership and management,” a characteristic of joint-stock companies.
- What is the maximum number of working hours per week established by the Labor Standards Act?