Chapter I General Provisions (Object)

Article 1. The object of unemployment insurance shall be to grant an unemployment benefit to the insured person when he is out of a job for the purpose of stablizing his livelihood.

(Insurer) Article 2. The undertaking of unemployment insurance shall be managed by the Government.

(Definitions) Article 3. The term "unemployment" in this Law shall signify the condition in which an insured person is out of a job and cannot be employed in spite of his will and ability to work. The term "separation" in this Law shall signify the condition in which the employment relationship of an insured person has terminated.

(Wage) Article 4. In this Law, the wage shall be defined as the wage, salary, allowance, bonus and all other payments to the worker from the employer as remuneration for labor under whatever name these may be. However, wages shall not include "extraordinary" wages, wages which are paid periodically at intervals longer than three months and wages which are paid by anything other than money that is not regulated by ordinance. When wage is paid by anything other than money as mentioned in the proviso of the preceding paragraph, matters necessary for the valuation of it shall be defined by ordinance.

Article 5. The amount of premium and insurance benefit shall be calculated on the basis of the wage of the insured.

Chapter II The Insured Person

(Compulsory) Article 6. All workers who are employed in the working places corresponding to any of the following items shall be regarded as the insured persons in this Law: 1. Working places of enterprises listed below in which not less than five workers are habitually employed: (a) Enterprises engaging in manufacturing, rebuilding, improving, repairing, cleaning, sorting, packing and decoration, finishing, tailoring for the purpose of selling, destruction or breaking up, of goods and alteration of material (including enterprises which generate, transform, and transmit electricity, gas, and various forms of power and also water works); (b) Mining, sand mining, stone cutting, and other extraction of gravel or minerals; (c) Enterprises engaging in the transportation of freight and passengers by roads, railroads, street-car lines, cable lines, vessels and airplanes; (d) Enterprises engaging in the handling of freight at docks, on vessels, at jetties, piers, railroad stations and warehouses; (e) Enterprises engaging in the selling, delivery, storing and landing of commodities; (f) Banking, insurance agency, brokerage, bill collection, information and advertising enterprises; (g) Enterprises engaging in incineration, cleaning, and butchery. 2. Offices of juridical persons in which not less than five workers are habitually employed; 3. Governmental and other public offices which do not come under any of the foregoing items.

(Special provision concerning the employees of the government and local public entity) Article 7. The employees of the national, prefectural, municipal, town or village government agencies or others of the similar kind shall be excluded from coverage under this Law, irrespective of the preceding Article, according to the provisions of Cabinet Order, provided they are eligible for pension, retirement allowance or other benefits of a similar kind according to laws, ordinances, orders, etc., in case they are out of jobs, which are substantially equal as a minimum to the benefits provided under this Law.

(Voluntary inclusion of insured person) Article 8. Employers of working places not designated in Art.6 may apply for the sanction of the Labor Minister to have their workers insured as a whole under unemployment insurance. The approval of more than one half of the number of persons to be insured is necessary to apply for the sanction mentioned in the preceding paragraph. When more than one half of the number of persons to be insured wishes to be insured, the employer shall have to apply, for the sanction mentioned in Par.1. When the sanction mentioned in Par.1 is granted, the workers of the said working place shall be regarded as the persons insured under unemployment insurance.

Article 9. In case the working place designated in Article 6 ceases to meet the provisions of the said Article, the employees of the said working place shall be regarded as insured under the provisions of the preceding Article.

(Exclusion of insured persons) Article 10. Irrespective of the provisions of Arts.6 and 9 and the preceding Article, persons who come under any of the following items shall not be insured persons. However, in case a person who comes under Item 1 has been continuously employed by the same employer for more than one month on in case a person who comes under Item 2 or 3 has been continuously employed by the same employer for a period longer than stipulated in each item, this shall not be applicable: 1. Workers who are employed on the day basis; 2. Workers who are employed for a specific term of employment which is less than two months; 3. Workers who are employed in a seasonal enterprise with a term of employment which is less than four months; 4. Insured persons under the Seamen's Insurance; 5. Workers who are employed on probation for a period not longer than 14 days; 6. Workers who are employed in enterprise which have no definite location.

(Term of acquiring qualification) Article 11. A person who is to become an insured person in accordance with the provisions of Art.6 or Art.8 shall have the qualification for it as from the day on which he becomes an employee of the working place or on which the said working place comes under the provisions of Art.6 or the proviso to the preceding Article.

(Term of losing quaification) Article 12. An insured person shall lose his qualification as from the following day of the date of his death or unemployment or as from the following day of his coming under any of the items of Art.10. However, in case he comes under the provisions of the preceding Article on the very day when the fact happens, he shall lose his qualification on the day of happening.

Article 13. The employer of the insured persons mentioned in Art.8 may apply for the sanction of the Labor Minister to abolish the qualification as a whole of the insured persons who acquired the qualification according to the provisions of the said Article. The approval of more than three fourths of the number of the insured persons is necessary to apply for the sanction mentioned in the preceding paragraph. The insured persons shall lose their qualification as from the next day of the sanction.

(Calculation of the period for being insured) Article 14. The insured period shall be calculated by the month. In case the labor days of a month (in case the wage is defined by the month, week, or any other fixed period, the days to be paid) are 11 or more the month shall be counted as a completed month, and in case the labor days are 10 or less, that month shall not be counted.

Chapter III Unemployment Insurance Benefit

(Requisites for receipt) Article 15. In case an insured person is unemployed after he has been insured for more than six months in total during the year preceding the date of separation, he shall be eligible for unemployment insurance benefits. In case a person who is authorized to receive unemployment insurance benefits according to the provisions of the preceding paragragh is again unemployed after being employed in the course of the benefit year stipulated in Art.18, he shall be eligible for unemployment insurance benefits according to the previous qualification, even, if he is not eligible on the basis of a new calculation according to the last paragraph.

Article 16. To receive unemployment insurance benefits a person who comes under the provisions of the preceding Article (hereinafter called a qualified recipient) must present himself at the Public Employment Security Office to apply for a job and receive the recognition of his unemployment according to the provisions of Cabinet Order.

(Amount of benefit) Article 17. The unemployment insurance benefit shall be calculated on the basis of the quotient of the total amount of wages, divided by the number of all days during the last two months as are calculated into the insured period, prior to the claimant's separation from employment (in the case of being separated on the last day of the month, that month shall be used in the calculation together with the next prior month of a minimum of 11 days of covered employment). However, in case the wage paid in the last completed month is higher than that of the previous month on account of a wage raise according to laws, ordinances, orders, etc. or labor contracts or rules of employment, unemployment insurance benefits shall be calculated on the basis of the quotient of the total amount of the wage paid in the last completed month divided by the number of all days during that period. In case the amount determined by the preceding method does not equal the amount calculated on the basis of the following method, the unemployment insurance benefit shall be paid as follows, irrespective of the provisions of the preceding paragraph: 1. In case the wages are computed by labor days or labor hours or defined by piece-rate or other contract price, 70 per cent of the quotient obtained by dividing the total sum of wages by the number of the labor days during that period; 2. In case a part of the wages is defined by the month, week, or any other fixed period, aggregate of the quotient obtained by dividing the total sum of these by the number of all days during that period and sum of those computed by the foregoing item. The unemployment insurance benefits shall be the fixed amount which shall be stated in relation to wages grouped into wage classes in a Table of Benefit issued by the Labor Minister. However, the maximum amount of wages on which unemployment insurance benefits shall be calculated shall be fixed at 170 yen per diem. The median amount of insurance benefits shall be fixed at approximately 60% of the wage which is calculated according to the provisions of Pars.1 and 2 of this Article in case it falls in wage classes of 40 or more yen and less than 80 yen;in case the wage falls in wage classes of 80 or more yen and up to and including 170 yen, the benefit shall be a gradually decreasing percentage of the wage amounting down to approximately 40% of 170 yen maximum, and in case the wage falls in wage classes of less than 40 yen and down to 10 yen (including all per diem wage of less than 10 yen), the benefit shall be a gradually increasing percentage of the wage amounting up to apprximately 80% of 10 yen. When the Labor Minister finds that a change amounting to 25% or more has occured in average wages paid to workers in manufacturing industries as determined by the Cabinet Bureau of Statistics'Index of wages in manufacturing industry compared with the average wages computed by the same index for the month in which the Table of Benefits took effect, he shall issue a new Table of Benefits fixingg new benefit amounts for new wage classes. The wage which falls in wage classes specified in the preceding paragraph shall be changed in the new Table of Benefits in the same proportion that average wages have changed. Benefit rates as percentages shall remain the same. When a new Table of Benefits is issued benefits specified therein shall be paid regardless of the provisions of Pars.3 and 4 from the date of the promulgation of the new Table of Benefits. When the qualified recipient has earned some income by his labor during a period of unempleyment for which he has received recognition by the Public Employment Security Office, in accordance with the provisions of Art.16, he shall be permitted to receive the amount of benefits necessary to bring his earnings to approximately 80% of the normal wage which his benefit was calculated. The specific amount of benefitss in such cases shall be specified by Cabinet Order. In case the qualified recipient receives a sickness allowance in accordance with the provisions of Art.55 of the Health Insurance Law, only that part of the insurance benefit in excess of the sickness allowance shall be paid.

(Benefit year) Article 18. The benefit year in which a qualified recipient is eligible for receiving unemployment insurance benefits shall be one year as from the following day of the date of the first separation when he comes under the provision of Art.15, Par.1. In case a qualified recipient is again unemployed after being employed during the course of the benefit year and newly meets the provision of Art.15, Par.1, the benefit year stipulated in the preceding paragraph shall newly be calculated as from the date of the separation.

(Waiting period) Article 19. The unemployment insurance benefit shall not be paid unless a qualified recipient has been unemployed for a period of seven days in total after his first application for a job to the Public Employment Security Office, after-he-became unemployed. In case, however, the person who has become eligible to receive the unemployment insurance benefit is again unemployed in the course of the benefit year stipulated in the preceding Article, he shall not have to serve an additional waiting period.

(Term of Benefits) Article 20. The unemployment insurance benefits shall not be paid for more than one hundred and eighty days in total in one benefit year stipulated in Art.18. In case a qualified recipient comes under the provisions of Art.18, Par.2 the unemployment insurance benefit according to the previous qualification shall not be paid to him.

(Restriction on benefit) Article 21. In case a qualified recipient refuses to accept the job to which he is referred by the Public Employment Security Office or does not obey the direction of the same concerning vocational training, the unemployment insurance benefit shall not be paid to him for one month after the date. However, in case a person comes under any of the following items, this shall not be applicable: 1. In case it is found that the job to which he is referred or the job in reference to which vocational training is recommended is unsuitable as compared with the ability of the qualified recipient; 2. In case the movement of domicile or temporary domicile for the purpose of accepting the job to which be is referred is difficult; 3. In case the wage is unreasonably lower than the provailing wage of other workers of the same kind and skill in the same locality; 4. In case the qualified recipient is referred in violation of the provisions of Art.20 of the Employment Security Law to the working places where a labor dispute is arising; 5. In case there are other justifiable reasons. The Public Employment Security Office must determine whether or not the qualified recipient comes under any of the items of the preceding paragraph according to the standards set by the Labor Minister after consulting with the Unemployment Insurance Advisory Committee.

Article 22. In case an insured person is discharged due to his grave misconduct or other reasons which fall on his responsibility or in case he resigns at his own request without any sufficient reason to justify it, the unemoloyment insurance benefit shall not be paid to him for the term not less than one month and not more than two months after the lapse of the waiting period stipulated in Art.19, the length of which shall be directed by the Public Employment Security Office. The Public Employment Security Office must determine whether or not the unemployment of a qualified recipient is casued by any of the facts mentioned in the preceding paragraph according to the standards set by the Labor Minister after consulting with the Unemployment Insurance Advisory Committee.

Article 23. In case a qualified recipient receives or attempts to receive unemployment insurance benefits by means of a false statement or other unfair conducts the unemployment insurance benefits shall not be paid to him. In case the fact mentioned in the preceding paragraph happens, the Government may order the person who thus received the unemployment insurance benefits or his successor to refund the sum corresponding to the amount of the benefits received.

(Method and time of payment) Article 24. Insurance benefits shall be paid once a week for the preceding seven days'amount (excluding the amount for the days which a qualified recipient did not have the recognition of unemployment) at the Public Employment Security Office. However, the Minister of Labor may, when necessary, establish standards for the payment of the unemployment insurance benefits in a different manner after consultation with the Unemployment Insurance Advisory Committee. The day for the payment of the unemployment insurance benefits shall be decided for each claimant by the Public Employment Security Office and shall be made known to each claimant.

(Prohibition of transference and impounding) Article 25. The right to receive unemployment insurance benefits shall not be transferred nor impounded.

(Exemption from taxes and duties) Article 26. No taxes nor duties shall be levied on unemployment insurance benefits.

(Payment of travelling expenses) Article 27. In case a qualified recipient agrees to remore his domicile or temporary domicile to engage in a job placed by the Public Employment Security Office, the expenses required for removal of the qualified recipient and his dependants (including the one who actually live together with him though not legally married) may be paid by the Government. Necessary matters concerning the payment of expenses as provided for by the preceding paragraph shall be fixed by the Labor Minister after consulting with the Unemployment Insurance Advisory Committee. The provisions of Art.23 shall apply mutaits mutandis to the case of Par.1.

Chapter IV Expenses

(Expenditure of the National Treasury) Article 28. The National Treasury shall bear one third of the amount of the expenses necessary for insurance benefits. The National Treasury shall bear the expenses necessary for the administration of the unemployment insurance program within the annual budget, besides the expenses prescribed in the preceding paragraph.

(Collection of premium) Article 29. The Government shall collect the premium for the purpose of meeting the expenses required for the unemployment insurance program.

(Rate of premium) Article 30. The Premium rate during the first six months after the enforcement of this Law shall be 1.1 per cent for the employer and 1.1 per cent for the insured person. In accordance with the provisions of a Cabinet Order, the Labor Minister shall, after consultation with the Unemployment Insurance Advisory Committee, take the procedures to charge the rate of premium. In case of emergency, the premium rate may be changed by the Labor Minister after consulting with the Unemployment Insurance Advisory Committee when, after balancing the amounts of premiums and benefits of the preceding six months at the end of March and September of every year, the total amount of the reserve fund of the Unemployment Insurance Special Account is found to be smaller than the anticipated benefit payment for the next four months. In the case of the latter sentence of the preceding paragraph, the Labor Minister shall recommend changing the premium rate at the next session of the Diet. Unless the new rate is confirmed by the Diet within one year of the day when the change was made, it shall be deemed to have reverted to the rate fixed in the first paragraph at the and of one year after the day when the change was made.

(Amount and division of premium) Article 31. The monthly amount of premium shall be a definite sum based on the wage which was paid during the month multiplied by the premium rate in accordance with the Table of Premium issued by the Labor Minister based on wage classes. However, the maximum amount of wages on which premiums shall be calculated shall be fixed at 5,100 yen per month. The provisions of Article 17, Paragraphs 5 and 6 shall apply mutatis mutandis to the change of the maximum amount of wages fixed by the preceding paragraph. The insured person and employer shall pay equal amount of premium.

(Employer's Duty of payment of premium) Article 32. An employer shall be responsible for paying the portion of the premium to be borne by the insured person in his employment.

(Deduction of premium from wages) Article 33. The employer may deduct the employer's portion of the premium which he is responsible for paying for the insured from the wages according to the provisions of the preceding Article. In such cases the employer must maintain records and inform the insured of the amount of all such deductions.

(Time of Payment) Article 34. Premium shall be payable monthly. The due date for payment shall be provided for by Cabinet Order.

(Disposition of Premium in Arrear) Article 35. In case a person fails to pay the premium, the Government shall urge him to pay it specifying a time limit for the payment. In urging the dayment in accordance with the provisions of the preceding paragraph, the Government shall send out a notice of demand to the person responsible for the payment. In this case the charge for demand shall be collected in accordance with the provisions of Cabinet Order. When a person who is urged payment in accordance with the provisions of the preceding two paragraphs fails to pay the premium or other assessments specified in this Law within the designated period, the Government may dispose of him in accordance with the procedure for disposition of national taxes in arrear or may request such disposition to the municipality, town or village (including special ward hereinafter) in which the delinquent lives or his property lies. In case the Government requests disposition by the municipality, town or village according to the provisions of the preceding paragraph, the latter shall dispose of the case in the way similar to local taxes. In this case, the Government shall pay four per cent of the amount collected to the municipality, town or village.

Article 36. When urging of payment is thus made according to the provisions of the preceding Article, the Government shall, at the rate of four sen per one hundred yen per diem, collect interest for delay calculated by the number of days from the following day of the date designated for payment to the day before the date of full payment of assessments or of impounding of the property. In case, however, the assessments and charges for demand are paid in full within the term mentioned in the notice of demand or in other cases design ated by Cabinet Order, the above provision shall not apply.

Article 37. The order of preference of the premium and other assessments prescribed in this Law shall be next to that of assessments of municipalities, towns, village or others of the similar kind, and shall precede other public imposts.

Article 38. The provisions of Articles 4-(7) and 4-(8) of the National Tax Collection Law shall be applicable mutatis mutandis to the forwarding of documents concerning the premium and other assessments prescribed in this Law.

Chapter V The Unemployment Insurance Advisory Committee

(Unemployment Insurance Advisory Committee) Article 39. The Unemployment Insurance Advisory Committee shall be organized for the purpose of deliberating on important matters concerning unemployment insurance. The Labor Minister must determine important matters concerning the administration of the unemployment insurance program after consulting with the Unemployment Insurance Advisory Committee. When deemed necessary, the Unemployment Insurance Advisory Committee may make suggestions to the administrative agencies concerned, or may request necessary reports concerning the administration of the unemployment insurance program in order to consult mere effectively with the Labor Minister. The Unemployment Insurance Advisory Committee shall consist of the same number of members representing the insured, employers and the public interest respectively, and shall be appointed by the Labor Minister. Matters of an administrative nature other than stipulated in the preceding paragraphs regarding the Unemployment Insurance Advisory Committee shall be provided for by Cabinet Order.

Chapter VI Request For Hearing, Petition and Lawsuit

(Request for Hearing) Article 40. Any person who is dissatisfied with a decision with regard to payment of unemployment insurance benefits may request a hearing by the Unemployment Insurance Referce. When dissatisfied with the dicision thus given, he may request a hearing by the Unemployment Insurance Appeal Board. When dissatisfied with the decision given by the latter, he may institute a lawsuit in an ordinary court. Request for hearing stipulated in the preceding paragraph shall be regarded as juridical demand in connection with the interruption of prescription.

(Unemployment Insurance Referce) Article 41. The Unemployment Insurance Referee shall be appointed by the Labor Minister and his duties shall be as defined in this Law. The Unemployment Insurance Referee may make investigation with authority wherever he deems necessary. When it is deemed necessary for investigation, the Unemployment Insurance Referce may ask the opinion of the government officials who have decided upon the payment of unemployment insurance benefits or may direct the qualified recipients or employers to make reports or to present themselves at the office.

(Petition) Article 42. In case a person is dissatisfied with the mposition or procedure of collection of premium or other assessments under the provisions of this Law, he may institute a petition to the Labour Minister. The Labor Minister shall be obliged to give his decision concerning the above petition through the investigation of the Unemployment Insurance Appeal Board.

(Unemployment Insurance Appeal Board) Article 43. The Unemployment Insurance Appeal Board shall consist of the same number of members representing the insured, employers and the public interest respectively, and shall be appointed by the Labor Minister.

(Evidence examination) Article 44. The Unemployment Insurance Referee or the Unemployment Insurance Appeal Board may, when considered necessary for investigation, question witnesses or expert witnesses or make other evidence examination. As for the evidence examination, provisions concerning evidence examination of the Civil Procedure Law and the provisions of Arts.9, 11, 12 and 13 of the Civil Procedure Expenses Law shall apply mutatis mutandis. However, no fine may be imposed nor custody be ordered.

(Terms of request) Article 45. Request for hearing, institution of a lawsuit or petition shall be made within sixty days from the date of receipt of written decision. In this case, the provisions of Art.8, Par.3 of the Petition Law shall apply mutatis mutandis to the request for hearing, and the provisions of Art.158, Par.2 and Art.159 of the Civil Procedure Law to the institution of a lawsuit.

(Detailed regulations) Article 46. Necessary matters of an administrative nature other than those stipulated in this Chapter regarding the Unemployment Insurance Referee and the Unemployment Insurance Appeal Board shall be provided for by Cabinet Order.

Chapter VII Miscellaneous Provisions

(Prescription) Article 47. The right to collect, or to be refunded premiums or to receive unemployment insurance benefits shall be voided by prescription after the lapse of twe years. As for the interruption, suspense, and other matters of prescription mentioned in the preceding paragraph, the provisions of the Civil Code concerning prescription shall apply mutatis mutandis. Notices for collecting premiums and other assessments made by the administrative offices according to the provisions of ordinance shall have the effect of interrupting prescription irrespective of the provisions of Art.153 of the Civil Code.

(Exemption from stamp duties) Article 48. Stamp duties shall not be imposed on decuments concerning unemployment insurance.

(Duty of report, etc.) Article 49. The administrative office may, as provided for by ordinance, direct the employer who hires insured persons to make reports or to submit documents concerning the changes of employment, wages of the insured persons and other matters necessary for the administration of the unemployment insurance program. The unemployed insured may request the employer to certify information necessary to determine his eligibility for insurance benefits, as will be specified by ordinance. The employer must, when so requested, cerfity regarding the information concerned.

Article 50. The administrative office may direct an insured person or a qualified recipient to make reports or to submit documents necessary for the administration of the unemployment insurance program, or to present himself at the offices.

(Question and investigation) Article 51. The administrative office may, when deemed necessary, have the competent officials enter the working places where insured persons are employed or qualified recipients were employed, question the person concerned or investigate the pertinent documents and ledgers, relating to employment and wages. In case of the preceding paragraph, the officials shall bear identification cards to show their authority.

(Delegation of competence) Article 52. The Labor Minister may, according to the provisions of ordinance, delegate a part of his competence prescribed in this Law to the administrative offices.

Chapter VIII Penal Provisions

Article 53. An employer who comes under any of the following items shall be subject to imprisonment of not more than six months or to a fine not exceeding ten thousand yen for willful violation: 1. In case he violates the provisions of Art.8, Par.3; 2. In case he fails to pay premiums when due which he has deducted from the insured person's wages in violation of the provisions of Art.32; 3. In case he refuses to certify in violation of Art.49, Par.2; 4. In case he fails to make a report, makes a false report, fails to submit documents, submits false documents, or fails to present himself at the office in violation of the provisions of this Law; 5. In case he fails to make an answer or makes a false answer to a question or refuses, interrupts or evades the inspection of the competent officials in violation of the provisions of this Law.

Article 54. An insured person, a qualified recipient or other person concerned, who comes under any of the following items shall be subject to imprisonment of not more than six months or to a fine not exceeding five thousand yen for willful violation: 1. In case he fails to make a report, makes a a false report, fails to submit documents, submits false documents or fails to present himself at the office in violation of the provisions of this Law; 2. In case he fails to make an answer or makes a false answer to a question or refuses, interrupts or evades the inspection of the competent officials in violation of the provisions of this Law.

Article 55. In case the conduct of a representative of a juridical person, an agent of a juridical or natural person, an employee, etc. concerning the business of a juridical or natural person comes under the provisions of the preceding two Articles, the said juridical or natural person shall be subject to a fine of stipulated in those Articles, besides the conductor himself is punished.