A common question from members who have converted to an unlimited-term contract is whether their employer can now change their working conditions.

The short answer is no – not simply because they have converted. 

In general, existing working conditions carry over when a worker converts from a fixed-term contract to an unlimited-term contract. A UTC is meant to provide greater job security, not create an opportunity for employers to rewrite the terms of employment. 

That means an employer cannot announce that your salary will be reduced, your working hours increased, or your workplace changed just because you are now on an unlimited-term contract. If an employer wants to make disadvantageous changes to your employment conditions, they must follow the requirements of Japan’s labour laws – and telling workers “this is our new policy” is not enough.

However, unlimited-term conversion does not completely freeze your employment conditions.This also applies to positive changes. If, for example, your workplace has an established system of annual pay increases or salary progression, those should normally continue after conversion. Employers should not use a UTC as an excuse to stop raises or place employees on a separate pay system because they exercised a legal right.

Every workplace is different, and whether a particular change is lawful depends on the facts. That’s why it’s important to seek advice before assuming that an employer’s explanation is correct.

If you’ve been told that your pay will no longer increase, that your working conditions must change because you now have a UTC, or you’re simply unsure whether a change is legal, the General Union can help. We can review your situation, explain your rights, and, when warranted, support you in discussions or negotiations with your employer.