Paid Leave

Annual paid leave is leave granted to workers who have been employed for a certain period, allowing them to take time off with pay (without a reduction in wages). This is stipulated by the Labor Standards Act. In this article, I will introduce the basic rules regarding annual paid leave.

Basic Requirements for Receiving Paid Annual Leave

Paid annual leave is a system that allows workers to take time off with pay for personal reasons or to rest and recharge. To be eligible for this leave, two main conditions must be met:

① At least six months of continuous employment

“Continuous employment” refers to the entire period during which the employee has been officially affiliated with the workplace—not just the days they actually worked. This is assessed based on the actual employment status.

For example, if someone is rehired as a fixed-term or part-time employee after retiring from a full-time position at the same company, their previous period of service may be counted as part of their continuous employment.

② Attendance rate of 80% or more during all scheduled workdays

The attendance rate is calculated based on how many days the employee actually worked compared to all scheduled workdays during the six-month period. However, there are important exceptions and considerations in this calculation:

● Days counted as “attended” even if not worked:

Some absences are still treated as if the employee had worked. These include:

• Periods of absence due to work-related injuries or illnesses
• Time taken for legally protected leave such as childcare leave or nursing care leave

● Days excluded from total scheduled workdays:

In cases where the company suspends operations and employees are asked not to report to work (such as company-mandated leave), those days are generally excluded from the total number of scheduled workdays. This ensures that the attendance rate is not unfairly reduced due to reasons beyond the employee’s control.

Once these two conditions are satisfied, the employee is legally entitled to receive paid annual leave. The first allotment is granted six months after joining the company, and additional days are provided annually based on length of service.

Paid Leave Days

The number of paid leave days you get depends on how long you’ve been with the company.

After 6 months, you get 10 days of paid leave. As you continue working, you’ll receive more days each year according to the law.

Years of Continuous Employment	0.5 year	1.5 years	2.5 years	3.5 years	4.5 years	5.5 years	6.5 years or more
Number of Paid Leave Days	10 days	11 days	12 days	14 days	16 days	18 days	20 days

When Can You Take Paid Leave?｜Timing and Employer’s Response

Employees generally have the right to choose the dates when they want to take their paid annual leave. So, if you tell your employer the day you want off, they are usually expected to approve it.

That said, this isn’t an absolute rule. If allowing leave on your chosen day would seriously disrupt the company’s operations, your employer can ask to change the date of your leave. This is called the “right to change the timing” (jiki henkōken in Japanese).

When can the employer use this right?

Employers can only use this right in certain situations. For example:

• When many employees want to take the same day off, making it hard for the business to run smoothly

But simply saying:

• “It’s a busy time” or “We’re short-staffed”

is usually not enough reason to change your leave date.

The key point is whether taking leave on the requested day would really interfere with normal business operations. Employers need to have a clear and reasonable cause to ask you to change your leave date.

Employer’s Obligation to Specify Timing for Paid Leave

Generally, employees choose when they want to take their paid annual leave. However, for employees who are granted 10 or more days of paid leave per year, the employer is legally required to designate the timing for at least 5 of those days. This obligation is known as the “employer’s duty to specify timing.”

In other words, when an employee has a sufficient number of paid leave days, the company also has some responsibility to ensure those days are actually taken.

What if the employee has already taken 5 or more days?

If the employee has already used 5 or more days of paid leave voluntarily, the employer does not need to designate additional leave dates.

Important points when the employer specifies leave dates

When an employer sets the timing for paid leave, they are required to consult with the employee and make a reasonable effort to respect their wishes.

This helps make sure the leave schedule takes into account the employee’s circumstances and preferences as much as possible.

This rule aims to encourage employees to take their paid leave, especially those who may find it difficult to request time off on their own. It also helps prevent employees from losing their earned leave simply because they couldn’t schedule it.

Paid Leave Expiry

Paid leave expires after 2 years. 

For example, if you carried over 10 days from last year and got 20 new days this year:

• If you use 15 days: 10 from last year, and 5 from this year’s new days, leaving 15 days to carry over to next year.
• If you use 5 days: 5 from last year, and the remaining 5 from last year expire, leaving 20 new days to carry over.

Hourly Paid Leave

You can take paid leave in hourly increments, like 1 hour or 3 hours, instead of whole or half days. However, it can’t be less than an hour. The law allows up to 5 days of paid leave to be taken in hourly increments each year. Beyond that, you must take it in full or half days.

Summary

Paid leave is essential for workers to rest and manage personal matters. If you meet the conditions, make sure to understand and use your paid leave. It helps you stay refreshed and more productive at work.