The labor ministry of Japan plans to include freelancers in all businesses. This is to expand the scope of workers’ accident compensation insurance. Furthermore, this program seeks to give freelancers navigating the changing terrain of varied working patterns a greater sense of security. This was addressed during a meeting by the Labour Policy Council’s subcommittee.
In other words, the government’s intention to create an atmosphere in which independent contractors may operate with confidence includes the proposed expansion, which is scheduled for execution by the fall of 2024. In addition, the scope of the national program known as personnel’ Accident Compensation Insurance, which mainly serves corporate personnel engaged in work-related accidents or commuting events, has historically been restricted.
Moreover, as things stand, program enrollment is open to freelancers and small company owners in specific industries, provided they pay the applicable rates. This method will be reviewed and will be applied to all independent contractors working on corporate outsourcing projects as recent modifications are done.
In Japan, there are 4.62 million independent contractors, of which 2.73 million work on corporate commissions, according to a government survey. In 2021, the current unique system—which was first sector-specific—welcomed workers in the animation production industry, bicycle delivery workers, and independent IT contractors. Only a year ago, dental technicians were added to the list.
To sum up, the planned extension is in line with the implementation of a new legislation in April that regulates economic operations between freelancers and organizations, further demonstrating the labor ministry’s commitment to protecting freelancers. According to The Japan Times, a supplemental resolution that accompanied the bill supported expanding the application of the special system to all independent contractors working on corporate commissions and encouraged the government to investigate ways to put it into practice.
