Japan has introduced the Freelance Protection Law to enhance the working conditions of freelancers. Effective from 1st November 2024, this law addresses the growing gig economy and provides better protection, job security, and clarity for freelancers. By focusing on contracts, payment terms, job postings, and harassment prevention, this legislation aims to establish a fairer and more transparent working environment for individual freelancers.
What Does the Freelance Protection Law Cover?
The Freelance Protection Law introduces several important changes that affect both freelancers and employers. Below are the key provisions of the law:
1. Clear Written Contracts
The law requires that freelancers now receive clear, written contracts from their clients. This measure helps prevent misunderstandings or disputes regarding work expectations, deadlines, and payment terms. Written agreements ensure that both freelancers and clients are on the same page, which reduces the potential for confusion and legal issues later on.
2. Timely Payment
One of the most significant changes is the mandatory 60-day payment rule. Freelancers are entitled to receive payment within 60 days of the agreed payment date. By enforcing this provision, the law seeks to tackle the common issue of late payments. This ensures freelancers are paid promptly, improving financial stability and reducing stress related to cash flow problems.
3. Accurate Job Postings
Another key aspect of the law is the requirement for accurate job postings. Employers must ensure that job descriptions are truthful and provide a clear outline of the work, expected deliverables, and compensation. This provision prevents misleading job offers and allows freelancers to make informed decisions before accepting work.
4. Protection Against Harassment
The law also includes provisions to safeguard freelancers from harassment. This can range from verbal abuse to discriminatory behaviour. Freelancers will now have more protection in place and a clear legal process to address any harassment they face in the workplace. As a result, freelancers will experience a safer and more respectful working environment.
How the Freelance Protection Law Benefits Freelancers
With the introduction of this law, freelancers in Japan will experience several advantages. These include:
- Legal Recourse for Payment Issues: Freelancers will now have legal grounds to pursue unpaid fees or breach of contract claims. This offers greater peace of mind when it comes to financial security.
- Improved Working Conditions: Clear contracts and enforced payment deadlines will help freelancers establish more stable working conditions and ensure that clients adhere to agreed-upon terms.
- Encouraging Fair Treatment: The law promotes fair practices in the workplace by ensuring transparency in job postings and protecting freelancers from workplace harassment.
How Freelancers Can Take Advantage of the Law
Freelancers can now enjoy a more structured and secure working environment. To make the most of these changes, freelancers should:
- Understand Your Rights: Familiarise yourself with the provisions of the Freelance Protection Law. This includes knowing your right to a written contract, timely payment, and protection from harassment.
- Negotiate Better Terms: With written contracts now mandatory, freelancers have more room to negotiate terms that benefit them. This could include clearer expectations, better payment schedules, or additional work-related protections.
- Report Harassment: If harassment occurs, the law provides a means to address the issue. Freelancers should use the legal recourse available to them to ensure they are treated with respect.
The Freelance Protection Law represents a significant step forward for freelancers in Japan. By enforcing clear contracts, timely payments, accurate job postings, and robust harassment protection, the law creates a fairer, more transparent freelance landscape. Starting from 1st November 2024, both freelancers and employers must adapt to these changes. Freelancers can now benefit from greater job security, legal protections, and a more stable working environment.
Speak to an Expert
At 360 Business Law, our experienced lawyers in Japan can assist if you need help navigating the new regulations. Whether you require support with contract issues, payment disputes, or understanding your rights, we are here to guide you through the process. Stay informed, take full advantage of the protections available to you, and enjoy a more secure freelance career in Japan.
Written by Takeshi Ishida