Changes to Childcare Leave in Japan Takes Effect in 2022

Significant amendments to the Childcare and Family Care Leave Act will be implemented in 2022. Employers should develop a comprehensive plan for how they will foster an environment where childcare leave is accepted and used by employees. Additionally, an expansion of employer requirements and reporting obligations on childcare leave program plans, outcomes, and improvement opportunities can be expected.  

Background 

Working parents in Japan face significant challenges in balancing employment and family life.  Long working hours, extended commuting times, and cultural expectations all impact on the role fathers play in child rearing. Japan has one of the most generous paternity leave provisions (up to one year unpaid). However, a 2017 study by the Japan Ministry of Health, Labor and Welfare found that only 7% of men in Japan utilized paternity leave provisions following the birth of a child. Many cited careers impact and a lack of acceptance within their organization and peer groups as reasons for this significant underutilization.    

The birthrate in Japan has declined year on year, from 14 births per 1000 in 1980, to just over 7 births per 1000 in 2021. In 2020, the fertility rate was amongst the lowest in the world at 1.34 (children per female). With this continued decline, coupled with an aging population, the Japanese workforce capacity is in a challenging period. The Japanese government has implemented a number of policy changes to increase the participation of women in the workforce and create a more sustainable employment model for Japanese men and women to balance work and raise children.  

In 2021, the Japanese government introduced a range of amendments to the Childcare and Family Care Leave Act – some of which will be implemented in 2022. 

Key items for 2022: 

• From April 2022 all employers are required to actively create and promote an environment that fosters the ability to take childcare leave.
  
  
• From April 2022, fixed term employees will be entitled to childcare leave, without the need for a 12 month service period.
  
  
• Fathers will be entitled to a new paid paternity leave period of up to four weeks following the birth of their child, and within the 8 weeks following the birth. This measure is due to take effect no later than December 2022. Fathers must provide two weeks’ notice to their employer and can take the time in a single period of four weeks, or in two leave periods.?
  
  
• From April 2023, employers with over 1000 employees will be required to report on the number of employees (female and male) who have taken childcare and family leave.  

Outlook: Employers are encouraged to develop a comprehensive plan for how they will foster an environment for the childcare leave to be used, including employee and management training, written policies, and the sharing of role model experiences. Within 12 months, Japanese organisations will be required to report on leave utilisation. As is often seen with similar endeavours, we can anticipate an expansion of employer requirements and reporting obligations on childcare leave program plans, outcomes, and improvement opportunities in this important space.