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Japan's hiring and firing practices in the spotlight

Publish date: 21 August 2013
Issue Number: 2
Diary: Legalbrief Workplace
Category: Labour

The battle of hiring and firing practices in Japan, where lifetime employment has long been the norm and where large-scale layoffs remain a social taboo, is intensifying, reports The New York Times.

As Japan's economic recovery slows, Prime Minister Shinzo Abe wants to loosen rigid rules on job terminations for full-time staff. Economists say bringing flexibility to the labour market would help struggling companies to better compete in the global economy. But critics say something more important is at stake. They warn that making it easier to cut jobs would destroy Japan's social fabric for the sake of corporate profits, causing mass unemployment and worsening income disparities. Full report in The New York Times