Business & Human Rights 2025 Comparisons

In October 2020, the government launched Japan’s National Action Plan (NAP) on business and human rights (2020-2025) in response to increased international attention on the need for business enterprises to respect human rights. The NAP lists a series of measures and policies relating to BHR that the government should implement. It also sets out expectations for business enterprises to promote the introduction of human rights DDs in the context of their business activities.

The government annually reports on the progress of implementation of the NAP. For example, the report on the third-year review (April 2023 to March 2024) released in May 2024 covers discussions on measures to promote the NAP held in government meetings over the course of a year and on progress made, which includes the government’s policy on human rights considerations in public procurement, and the progress on the dissemination and aware-raising activities especially among SMEs regarding the Guidelines on Respecting Human Rights in Responsible Supply Chains.

In May 2024, the Inter-Ministerial Liaison Conference on the Implementation of the NAP on Business and Human Rights approved the start of the NAP revision work for next year, which will be revised in 2025.

In Japan, human rights DD has not been legislated, and private sectors have not imposed any legal requirements on conducting human rights-related DD. However, in 2021, the Ministry of Economy, Trade and Industry (METI) and the Ministry of Foreign Affairs (MOFA) conducted a questionnaire survey for private sectors as one of the implementation measures of the NAP, and the result of the survey showed that private sectors strongly requested the Japanese government establish guidelines on human rights DD. In response to the results of the survey, the “Guidelines on Respecting Human Rights in Responsible Supply Chains” (“Guidelines”) were established in 2022, and they were expected to serve as a soft law.

Following the release of the Guidelines, METI released “Reference Materials on Practical Approaches for Business Enterprises to Respect Human Rights in Responsible Supply Chains” (“Reference Materials”). The Guidelines suggested that the government prepare additional documents to share with the private sector more details on measures for human rights in a practical manner, including in-depth explanations and case examples. The Reference Materials provide practical guidance on how business enterprises should conduct human rights DD.

In addition, on 25 December 2023, the Ministry of Agriculture, Forestry and Fisheries released its “Guidebook for Respecting Human Rights in Food Enterprises” as a guideline on human rights DD for the food industry. This guideline points out that the food industry is responsible for implementing measures for human rights because it has extensive supply chains that cover production, manufacturing, distribution, and retailing.

As mentioned in 1.1 Business and Human Rights: A Summary, the Working Group toured Japan in 2023 and surveyed to assess the measures implemented by the government and the private sector. Based on their interviews with companies, the Working Group pointed out in their report published in 2024 that most private sector actors, including in the financial sector, indicated that it would be desirable to make it mandatory to conduct human rights DD. The Working Group said that it would level the playing field and enhance the consistency between government policies and UN policy on BHR.

Japan does not have a specific legal framework addressing modern slavery, such as bans on the import of products made with children or forced labour. However, Article 18 of the Constitution of Japan prohibits involuntary servitude. Child and forced labour are also prohibited and regulated under the Labour Standards Act (Act No 49 of 1947). Companies that violate these prohibitions face penalties, including fines.

Technical Intern Trainee Programme

Japan has been criticised by the international community for human rights violations related to its technical intern trainee programme. During the 4th Universal Periodic Review, held in February 2023, UN member states recommended that Japan improve the treatment of migrant workers, including foreign technical intern trainees.

For the proper implementation of the training of and the protection of technical intern trainees, the Act on Proper Technical Intern Training and Protection of Technical Intern Trainees (Act No 89 of 2016) was enacted, which stipulates prohibitions and penalties for violation of human rights for foreign technical intern trainees. However, even after the enactment of this Act, the working and living conditions of migrant workers, including technical intern trainees, have remained poor, and the need for improvement has been pointed out.

The serious issue of payment and debt incurred by technical intern trainees before they migrate to Japan has been highlighted as an example. The Technical Intern Training Programme was originally designed to enhance technical interns’ skills and contribute to international society by enabling them to apply those skills in their home countries. However, in practice, the programme is increasingly viewed as a way to address labour shortages by employing foreign workers. This has created a disconnect between the programme’s original purpose and its current implementation.

ESD Programme

In response to these issues, the Act was amended in June 2024 to adopt a new programme called the “Employment for Skill Development (ESD)” programme. The ESD programme aims to develop and secure human resources in industrial fields with labour shortages rather than international cooperation through skills transfer. Also, a basic policy for the ESD programme and field-specific operation policies for each ESD industrial field will be established. The field-specific operation policies will set out the expected number of acceptances for each field. An accreditation system by the Employment-for-Skill-Development Organisation (ESDO) for the ESD Plan prepared for each foreign national will also be established.

Children and Families Agency

With regard to human rights violations against children, the Children and Families Agency (CFA) was established in April 2023. The basic principle of this Agency includes the protection of children’s basic human rights and equal education for all children. In June 2024, the Child Sexual Abuse Prevention Law (the Japan DBS Law) was enacted and promulgated to prevent sexual violence against children, with the CFA playing a central role. This Act requires private sectors, such as schools and licensed nursery schools, as well as cram schools and swimming schools, to confirm the history of sexual crimes of their employees and prospective employees.

Due to an amendment to the Cabinet Office Order on Disclosure of Corporate Affairs (Ministry of Finance Order No 5 of 1973), it has become mandatory for listed companies to disclose sustainability information in their annual securities report. Specifically, a new section titled “Approach and Initiatives Relating to Sustainability” has been added to the “Business Overview” section of the annual securities report, requiring listed companies to report on four items: “governance”, “strategy”, “risk management” and “metrics and targets”. Companies obliged to submit an annual securities report under the Financial Instruments and Exchange Act (Act No 25 of 1948) (FIEA) must include such information. Companies that disclose information based on the Act on Promotion of Women’s Active Engagement in Professional Life (Act No 64 of 2015) and the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (Act No 76 of 1991), are required to disclose the ratio of female managers, the ratio of male employees taking childcare leave, and the gender wage gap between men and women in the annual securities report as part of the “Status of Employees.” For other items, companies will disclose relevant information when they determine it is important.

If false statements are made or material facts are not stated in the annual securities report, the company will incur civil liability under the FIEA and may additionally be subject to criminal penalties and the payment of surcharges.

In September 2023, the Financial Services Agency (FSA) highlighted changes to the Corporate Governance Code, emphasising the importance of understanding the relationship between financial and non-financial information and its contribution to enhancing corporate value. Regarding diversity, the FSA indicated that it was necessary to consider investments in human capital in accordance with the company’s characteristics and growth stage. It also emphasised the importance of considering resilience in relation to various risks that companies face, including those within their supply chains.

In April 2019, the Act on Promoting Measures to Achieve a Society in which the Pride of Ainu People is Respected (Act No 16 of 2019) was enacted to promote measures to protect Ainu traditions and culture. This Act clearly states that the Ainu people are Indigenous people of the northern part of the Japanese archipelago, in particular Hokkaido, and that it is prohibited for any person to discriminate against the Ainu people or commit any other act that infringes upon the rights or interests of an Ainu person for being Ainu. In addition, this Act stipulates subsidies for the promotion of Ainu culture and exceptional allowances for Ainu people in logging or fishing. However, this Act does not stipulate any penalties for the violation of its prohibition against discrimination or specific exceptional allowances for the use of land.

Japan has received recommendations from the United Nations Committee on the Elimination of Racial Discrimination to recognise the people in Okinawa as indigenous people and to guarantee their rights. However, no legislation has been enacted so far on this issue.

There is no comprehensive anti-discrimination law in Japan. However, regarding discrimination based on gender, race and origin, religion, disability, and age in the workplace, the Labor Standards Act and other labour laws and regulations stipulate a prohibition on discriminatory treatment and measures to eliminate discrimination.

The Act on Equal Opportunity and Treatment between Men and Women in Employment (Act No 113 of 1972) aims to promote equal opportunity and treatment between men and women in employment in accordance with the principles of the Constitution of Japan. This Act prohibits discrimination based on gender and any disadvantageous treatment due to marriage, pregnancy, and childbirth in the workplace. It also requires employers to take measures in employment management concerning sexual or other types of harassment.

Under the Act on Childcare Leave, Caregiver Leave and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (Act No 76 of 1991), rules are established governing childcare leave. In addition, since 1 April 2025, companies that regularly employ more than 300 employees are required to disclose the status of male employees who take childcare leave at least once every year.

Under the Act on the Promotion of Women’s Active Engagement in Professional Life, employers with more than 100 employees are required to monitor the status of female employees’ activities, including the percentage of female employees and their length of service, analyse issues to be improved, set numerical targets, and formulate and publish an action plan. Such employers are also obliged to implement measures based on the plan and make efforts to achieve the targets.

Under the Act on Comprehensively Advancing Labour Measures, Stabilising the Employment of Workers, and Enriching Workers’ Vocational Lives (Act No 132 of 1966), employers must take measures to prevent power harassment in the workplace.

The Act to Facilitate the Employment of Persons with Disabilities (Act No 123 of 1960) prohibits discrimination against persons with disabilities and stipulates that employers must take reasonable measures to consider them.

As stated in 2.2.2 Corporate Human Rights Due Diligence Legislation, METI published “Guidelines on Respecting Human Rights in Responsible Supply Chains” in September 2022. METI also released the Reference Materials on Practical Approaches for Business Enterprises to Respect Human Rights in Responsible Supply Chains in April 2023 to provide practical guidelines on how business enterprises should conduct human rights DD. These guidelines would function as soft laws regarding human rights initiatives, including human rights DD. The Working Group has pointed out that the current response to BHR is limited to a soft law approach rather than legislation and that consideration should be given to legislation.

In addition to the guidelines published by METI at the Inter-Ministerial Committee for Japan’s National Action Plan on Business and Human Rights in April 2023, it was decided that the government would work to ensure that companies bidding for government contracts respect human rights. Specifically, the government has decided that the bidding instructions and contracts for public procurement should include a clause that “the bidder/contractor shall endeavour to respect human rights in accordance with the Guidelines on Respecting Human Rights in Responsible Supply Chains.”

Although it is not a government guideline, the Japan Textile Federation, one of Japan’s industry associations, has published its “Guidelines for Responsible Corporate Behaviour in the Textile Industry”. This document has been prepared considering the characteristics of the Japanese textile industry, which is made up of many small and medium-sized enterprises and is meant to ensure that the Japanese textile industry takes action to respect human rights and fulfil its social responsibilities.

Further, the Center for International Economic Collaboration published its “Human Rights Due Diligence Guidelines for Small and Medium-sized Enterprises” in December 2022. SMEs generally have limited resources and information, and it is often difficult for them to take sufficient actions in relation to protecting human rights. In fact, the Working Group pointed out a gap between the large and the small and medium-sized companies in terms of understanding and implementing the UN Guiding Principles on Business and Human Rights. These guidelines explain specific examples and workflows to enable such companies to immediately promote action on human rights and are written in clear language.

As stated in 2.2.1 National Action Plan, the Inter-Ministerial Liaison Conference on the Implementation of the NAP on Business and Human Rights approved the start of the NAP revision work for next year. This revision is in progress with the relevant authorities and is scheduled to be released by the end of 2025.