Abstract
Since the administration of former Prime Minister Abe, the need for employment and labor reforms to relax dismissal regulations has been discussed as an important issue in order to promote economic growth through job mobility, but it has not yet been realized. Economic growth should be achieved by moving and optimally deploying talent to growth areas, but Japan's employment practices have hindered the liquidity of the labor market.
On the other hand, the awareness of young people these days, who are not particular about Japan's employment practices, is changing, and their resistance to job changes is gradually diminishing. Meanwhile, with the acceleration of population decline, labor shortages are expected, and companies are beginning to switch to job-based hiring and year-round hiring. In the midst of these changes, it is desirable to introduce a financial compensation scheme. The dismissal provisions should be maintained based on the existing legal doctrine of abuse of the right to dismiss in the current Labor Contract Act.
