Japan Publishes 3 Key Compensation Rights Workers and Families Must Know

Japan Publishes 3 Key Compensation Rights Workers and Families Must Know

  • Japan's Labour Standards Act sets out specific compensation employers must pay when a worker dies or suffers a prolonged injury on the job
  • The law covers bereaved family payments, funeral expenses, and a discontinuation clause that applies after three years of medical treatment
  • The compensation amounts are calculated using the worker's average wage and can run into thousands of day-equivalents under the law

Japan's Labour Standards Act contains several provisions that directly protect workers and their families when workplace injuries or deaths occur, with employers legally required to pay defined amounts based on the affected worker's average daily wage.

Under Article 79 of Japan's labour law, an employer must pay compensation to the bereaved family of any worker who dies in the course of employment.

Under Japan labour law, employers pay statutory compensation and funeral expenses when a worker dies from a work-related incident.
Japan’s Labour Standards Act protects workers’ families by requiring workplace death compensation based on the employee’s average wage. Credit: AFP/Getty
Source: Getty Images

What the law says about workplace deaths

The amount is fixed at a value equal to 1,000 days of that worker's average wage. Separately, Article 80 requires the employer to pay funeral expenses to the person responsible for managing the funeral rites. That payment is set at 60 days of the deceased worker's average wage.

Read also

China announces 5 factors used to set minimum wage standards for workers

Together, the two provisions mean a bereaved family and funeral organiser can receive compensation worth more than 1,000 days of wages in total, all from the employer, following a work-related death.

The three-year rule on injury compensation

Japan's labour law also addresses situations where a worker is injured or falls ill on the job but does not fully recover over an extended period. Article 81 states that if a worker receiving medical compensation under the Act has not recovered within three years from the start of treatment, the employer has the option to pay a one-off discontinuation payment equivalent to 1,200 days of the worker's average wage.

Once that payment is made, the employer is no longer required to continue providing medical compensation under the Act.

The provision effectively gives employers a legal exit from ongoing compensation obligations after three years, provided they pay the lump sum amount in full.

Read also

Oman announces what employers must do for workers' repatriation within 30 days

Why these rules matter

The three articles together form part of the injury and death compensation framework within Japan's Labour Standards Act, which sets minimum obligations employers must meet when workers are harmed or killed on the job.

The calculations are tied directly to each individual worker's average wage, meaning the actual amounts paid will vary depending on earnings at the time of the incident.

Workers and their families are generally advised to understand these provisions before accepting any employer settlement, as the law specifies minimum entitlements that cannot be waived below the statutory floor.

Japan opens 18 industries to foreign workers

Legit.ng earlier reported that Japan has expanded access to its labour market for foreign nationals by listing 18 industries under its Specified Skilled Worker (i) programme, covering a broad sweep of sectors from healthcare to heavy industry.

Source: Legit.ng

Authors:
Basit Jamiu avatar

Basit Jamiu (Current Affairs and Politics Editor) Basit Jamiu is an AFP-certified journalist. He is a current affairs and politics editor at Legit.ng. He holds a bachelor's degree from Nasarawa State University (2023). Basit previously worked as a staff writer at Ikeja Bird (2022), Associate Editor at Prime Progress (2022). He is a 2025 CRA Grantee, 2024 Open Climate Fellow (West Africa), 2023 MTN Media Fellow. Email: basitjamiu1st@gmail.com and basit.jamiu@corp.legit.ng.