Worker Dispatching Act / Social Security System

Establishment, development, subsequent major amendments and revisions

As companies began taking measures to cope with the changes in economic and industrial structures in Japan in 1980, the perspectives of workers varied and they began to pursue more flexible working styles. The temporary agency work system was prohibited at the time by Article 44; Labor Supply Business of the Employment Security Act.
However, for the purpose of accommodating the needs of companies that require temporary agency work when it is needed, and workers who wish to utilize their experience and skills, and choose the location, time, and type of job, the Worker Dispatching Act was established in 1985 and went into effect in 1986.

The important purpose of the Worker Dispatching Act is to "properly manage supply and demand in the labor market", and "achieve protection and stable employment of temporary agency workers".
As the economic and employment situations and labor policies in Japan have changed, and the needs of companies and workers have varied, amendments to the Act have been repeatedly discussed, and the regulations for types of jobs in which temporary agency workers are permitted to work, employment periods, and others have been revised over the years. Also, legislation ensuring "equal pay for equal work" for temporary agency workers has been passed and became effective since April 1, 2020. The chart below indicates the major amendments to the Act since its enforcement.

yy.mm Permitted sector Limitation on employment period in the client company Limitation on employment period for each temporary agency workers
Enforced in 1986.7 13 sectors only 9 months
Amended in 1996.6 26 sectors only 1 year
Amended in 1999.6 All sectors except for 5 sectors (Construction, Port operation, Security, Medicine, Manufacturing) No limitation (existing 26 sectors)
1 year (all sectors except for 26 sectors)
Amended in 2004.3 All sectors except for 4 sectors
* Manufacturing is permitted
No limitation (existing 26 sectors)
3 years (all sectors except for 26 sectors)
Amended in 2009.12 Stricter rules in distinguishing 26 sectors from other sectors. Permitted sectors and limitation on employment period remains the same.
Amended in 2012.3 New regulation: banning day-labor employment, 80% or less temporary agency worker within group companies, banning the hiring of ex-workers as a temporary agency worker within a year of leaving the job, newly established system to assume official contract being signed between workers and client companies. Permitted sectors and limitation on employment period remains the same.
Amended in 2015.9 3 years in the same company,
in principle
3 years in the same company,
in principle
Amended in 2020.4 To ensure equal pay for equal work for temporary agency workers, either the "system for equality and equitability enforced by the client company" or "system according to the staffing agency's labor-management agreement" must be followed.
Page Top