A few things you should know about labor tribunal proceedings

It's been over a decade since Japan introduced labor tribunal proceedings in 2006. For those who are not familiar with them, labor tribunal proceedings are legal proceedings to resolve individual (i.e., not collective) employment disputes, as an alternative to formal lawsuits, in district courts presided over by labor tribunals. While the number of employment cases has doubled since they were introduced, labor tribunals have taken more employment cases than regular courts over the last several years. Below is a summary of their characteristics, and a few things you should bear in mind when you are involved in these proceedings.

1. It may be over in a single hearing

The labor tribunal only holds up to three hearings. Each hearing usually lasts for two hours (or possibly less), and both parties need to appear in person. The labor tribunal consists of one judge and two private individuals who are familiar with employment disputes. Usually, they have experience in labor unions or corporate human resources. 

At the first hearing, the panel hears from both sides, who present their arguments and key legal issues. If the tribunal finds any issues that need to be elaborated or clarified, the proceeding continues for the next hearing, which is scheduled within a couple of weeks from the first hearing. When the case has matured, the tribunal either dismisses the case or renders a decision based on their findings. As such, it is imperative, and also expected, to prepare all of your allegations prior to the submission date for the first hearing. 

In many cases, the proceeding ends within a few months after a petition is filed.

2. No matter who is right, you are strongly encouraged to settle anyway

The labor tribunal proceeding is created to resolve employment disputes quickly as most employment litigation took more than 12 months before it was enacted. As the number of hearings is limited to three, the tribunal is motivated to resolve cases efficiently. This means that the tribunal spends more time on exploring the possibility of settlement than on weighing detailed facts asserted by parties. Roughly speaking, approximately 70% of the tribunal cases are resolved in settlement. 

During hearings, tribunals focus on grasping what the case is about, why it became a dispute, what the key deviations are between the parties, and under what conditions a settlement would be viable. On the other hand, compared to formal litigation proceedings, the fact finding process is less detailed and thorough. Due to that, parties need to employ a slightly different strategy from formal litigation cases when pursuing labor tribunal cases.

3.  You can challenge and reverse decisions without going to appeal courts

From a procedural standpoint, a labor tribunal proceeding is different from formal litigation. Unlike other litigation, the proceeding is not open to the public. The tribunal may render a decision, or close the case without a decision. Parties can challenge the decision if it is not favorable, which sends the case back to a local district court as the court of first instance. Then the case becomes pending as a formal proceeding. While trial judges respect what was found and rendered in labor tribunals, the tribunals do not necessarily have binding effects.

4.   Probably not the best route for discrimination and harassment claims

As the labor tribunal is designed to resolve disputes quickly, it is not the best choice for disputes with complex backgrounds or no possibility of settlement. In that sense, discrimination or harassment claims, and worker’s injury cases are more suited to formal litigation. For unlawful termination or transfer cases, it is more popular to use labor tribunal proceedings. These classifications are not mandatory, however. The tribunal hears any individual employment claim, as long as it can be handled within three hearings.

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