Chapter 7 Employment

The Law for Employment Promotion, etc. of the Disabled Persons mandates that private corporations and national and local public entities employ a certain quota or more of persons with physical, intellectual or mental disabilities.

(As of July 1, 1998)

Private corporations Regular private corporation 1.8%
Special juridical person etc 2.1%
National and local
public entities
National and local public entities 2.1%
Prefectural Boards of Education, and other Boards of Education designated by the Minister

of Health, Labor and Welfare

2.0%

Persons with severe disabilities are counted as two when calculating the number of persons with disabilities who are employed. Persons with severe disabilities who cannot work full-time are counted as one for the purpose of promoting their employment.

2. Levy and Grant System for Employing Persons with Disabilities go to 3

The Levy and Grant System for Employing Persons with Disabilities is intended to alleviate the economic burden on employers who employ persons with disabilities and to further improve the employment standard of persons with disabilities. Levies are collected from corporations with 301 or more regular workers that have not met the employment quota. Adjustment allowance and rewards are provided to corporations that have met the quota. Grants are provided to employers and others who establish or improve work facilities for employing persons with disabilities or hire workplace attendants for employment management of persons with severe disabilities.

[Collection of Levies]

Corporations who fail to employ the legally required number of persons with disabilities are collected the levy of \50,000 per person per month.

[Payment of Adjustment Allowance, Rewards and Grants]

  • Payment of Adjustment Allowance (Corporations with more than 301 regular workers)

    ¥27,000 for each person in excess of the quota per month

  • Payment of rewards (Corporations with 300 or fewer regular workers which employ more than 4 % or 6 persons with disabilities)

    ¥21,000 for each person in excess of the quota per month

  • Grants for:
    • Provision of workplace facilities, etc for persons with disabilities
    • Improvement of workplace facilities for persons with disabilities
    • Workplace attendants for persons with severe disabilities
    • Commuting measures for persons with severe disabilities
    • Skill development of persons with disabilities

3. Vocational Rehabilitation at the Vocational Rehabilitation Centers for Persons with Disabilities go to 4

There are three types of vocational rehabilitation centers for persons with disabilities.

(1) National Institute of Vocational Rehabilitation (Chiba City)

National Institute of Vocational Rehabilitation, serving as the core facility for all vocational rehabilitation centers in Japan, conducts a high level of research and development on vocational rehabilitation skills, disseminates the results of research and development, and provides trainings for specialists.

(2) Area Vocational Rehabilitation Centers for Persons with Disabilities

Area vocational rehabilitation centers provide systematic vocational rehabilitation services in larger regions in close corporation with the Vocational Ability Development Centers for Persons with Disabilities and medical institutions.

  • National Vocational Rehabilitation Center (Saitama Prefecture)
  • National Kibi-Kogen Vocational Rehabilitation Center for Persons with Disabilities (Okayama Prefecture)
  • Vocational Rehabilitation Center for Persons with Spinal Injuries (Fukuoka Prefecture)

(3) Local Vocational Center for Persons with Disabilities

Local vocational centers are established in every prefecture and provide specialized and comprehensive vocational rehabilitation services ranging from consultations concerning employment to follow-ups in close corporation with Public Employment Security Offices (PESO). They also dispatch job coaches to corporations, support persons with disabilities in adapting to their workplaces, and provide trial-employment programs for employees who have never hired persons with disabilities before.

4. Vocational Ability Development Centers for Persons with Disabilities go to 5

Vocational Ability Development Centers for Persons with Disabilities provide persons with disabilities, who have difficulties in receiving vocational training at regular public vocational ability development facilities, with trainings appropriate to their capacities.

5. An exceptional subsidiary company go to 1

It is mandatory for companies to employ persons with disabilities. However a parent company can establish an exceptional subsidiary company which is considered as a business establishment of the parent company. In an application of the Levy and Grant System, if the exceptional subsidiary company does special considerations for the employment of persons with disabilities, these employees may be deemed to be those employed by the parent company in case a Public Employment Security Offices (PESO) authorizes. Therefore a parent company can reduce the amount of the levy or receive the grant for employing legally required number or more of persons with disabilities by establishing the exceptional subsidiary company.

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