JAPAN Trends and Developments Contributed by: Shiro Kato and Chihiro Shimaoka, Nagashima Ohno & Tsunematsu
missal under Article 22 of the Labour Standards Act. Regulations on working hours Regulations on working hours also apply to ath - letes, who fall under the category of an “employ- ee” . The Labour Standards Act stipulates that the legal working hours are, in principle, 40 hours per week and eight hours per day (Article 32), and employers are subject to penalties if they allow “employees” to work beyond these working hours unless they comply with certain requirements (Article 119). In addition, extra wages must be paid for overtime and holiday work (Article 37). Industrial accident compensation insurance Regular “employees” are covered by industrial accident compensation insurance. Under the Industrial Accident Compensation Insurance Act, any person who is subject to an injury, ill - ness, disability or death occurring in the course of employment is eligible for insurance benefits. Therefore, if an athlete who falls under the cat - egory of an “employee” suffers these accidents in the course of their employment, they will be entitled to benefits under the insurance scheme. Selecting the Type of Contract With Athletes Even if the contract is called “service contract” rather than an “employment contract” , labour laws would apply if the person concerned falls under the category of an “employee” . When there is such a discrepancy between the name of the contract and the true nature of the contract from the perspective of labour laws, there is an increased risk of labour law violations and dis - putes between the parties, as well as the unex - pected application of labour laws and burdens on the company.
Therefore, when a company enters into a con - tract with an athlete, it is important to consider what type of relationship is preferable for the company and to structure it accordingly, so that the name and content of the contract accu - rately reflects the true nature of the relationship between the company and the athlete. If a company hires an athlete as an “employee” , it is also important to clarify whether sports activi - ties are included in their duties as an “employ- ee” , rather than the sports activities being mere leisure or recreation. Whether the sports activities are included in the scope of work is to be judged on the basis of whether the sports activities are carried out under the direction and supervision of the employer and whether the remuneration for the sports activities constitutes compensation for work, in line with this criteria. More specifically, with respect to the existence of the company’s direction and supervision, it is important to consider, for example, whether and to what extent there is direction or involve - ment by the company with respect to the time, place and nature of the athlete’s participation in competitions and training (including whether the athlete is free to accept or reject this direction or involvement). With regard to remuneration, it is also important to compare the athlete’s remu - neration with that of ordinary “employees” . If sports activities are included in the duties of the athlete as an “employee” , the hours of sports activities will be subject to the working hour reg - ulations. In addition, an important practical con - sideration is that injuries resulting from sporting activities are also covered by industrial accident compensation insurance, as these injuries occur in the course of employment.
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