A major Osaka-based subcontractor is facing a business suspension order after it continued to dispatch temporary staff in violation of the Workers’ Dispatch Law, sources said.
They said the suspension order, to be served as early as this week, will cover all 84 offices of Collaborate Co., and will likely see the manufacturing subcontractor’s business activities halted for a two-week period.
The Ministry of Health, Labor and Welfare decided to go ahead with the measure after Collaborate ignored repeated requests to stop dispatching temp staff under the guise of subcontracted workers.
In recent years, a growing number of manufacturers has been found accepting workers on a subcontracted basis as a way to skirt employment-related responsibilities, particularly in regard to safety and supervision.
Furthermore, if labor is brought in through temporary staffing agencies, manufacturers are legally obliged to offer the workers full-time working contracts after a certain period of employment.
Under the Workers’ Dispatch Law, subcontractors are prohibited from supplying manpower to firms with which they have agreed to provide services or materials to meet other contracts.