Labor standard law prohibits discrimination based on nationality, belief, social status.
Employer cannot terminate employment contract at will. He/she needs cause
such as the employee’s wrong doing or inappropriate conduct that is grave
enough for dismissal.
Traditionally, termination of employment contract by the employer for the purpose of reducing costs was considered abuse of power unless:
1. There is need to reduce number of employees;
2. The employer has tried other measures to reduce costs so that reduction of employees would be unnecessary;
3. Selection of employees to dismiss is based on appropriate criteria; and
4. The employer has adequately negotiated with the labor union or the employee.
Today, the court does not render termination of employment contract null and void just because it does not fulfill all four conditions. It takes into consideration these four conditions to determine whether the termination constitutes abuse of power.
Employer must pay increased wages for overtime:
FUKUYA BLDG 5th FL