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2020/05/01 Update


Q&A: Employee benefits when businesses are closed due to COVID-19

Will I be eligible for an allowance when being asked to take a leave of absence as a prevention of the coronavirus spread?

According to Article 26 of the Labour Standard Atc: “In the event of an absence from work for reasons that are attributable to the employer, the employer shall pay an allowance equal to at least 60 percent of the worker's average wage to each worker during the period of absence”

In addition, it is desirable for each company to stipulate in its employment regulations, etc., that it will pay more than 60 percent of average wages (e.g., 100 percent). In this case, you will be eligible for the allowance if you meet the requirements.

Will I be eligible for an allowance when I am absent from work because of coronavirus disease (in case you have been contracted the virus).

In the event that a worker does not receive wages because the worker is unable to work by reason of medical treatment, insurance companies (which are in charge of the company’s employee health insurance) shall pay compensation for absence from work at the rate of 60 percent of the worker's average wage.

Will I be eligible for an allowance if I am suspected of having the disease and required to take a leave of absence?

For those who are suspected to be infected, please consult with the nearest Consultation Center. If the employee is still capable of continuing his/her duties based on the the result of the Consultation Center but the employer voluntarily allow him/her to take a leave of absence, the worker is entitled to an allowance of at least 60 percent of their average wage, as it generally falls under the category of “absence from work for reasons that are attributable to the employer”

Will I be eligible for an allowance if I voluntarily take days off from work due to a fever or other symptoms of the coronavirus?

If you voluntarily take days off from work due to a fever or other symptoms at a time when it is not known whether or not it is the novel coronavirus, your absence will be treated in the same way as normal sick leave and the sick leave system should be used.

As an employer, what should I keep in mind when I have to suspend my business due to the novel coronavirus spread?

When an employee is asked to take a leave of absence due to the suspension of the business, it is important for the employer to discuss with the workers and make efforts to avoid disadvantages to the worker.

However, if the absence is inevitable, the employer must pay the allowance of at least 60 percent of their average wage for the period of absence, according to the Article 26 of the Labour Standard Atc.

Source: Ministry of Health, Labour and Welfare