Hello, everyone.

This is Enta.

The "2024 Problem" seems to be causing major headaches, particularly for large general contractors.

The other day, I was having a drink with someone from a major general contractor and got some information from them.

 

As some of you may already know,

Regulations capping working conditions will take effect in April 2024.

 

Until now,

・Up to 8 hours per day (excluding a 1-hour break)
・Up to 40 hours per week

There was a statutory working hour limit, and any hours worked beyond that were considered overtime.

As a result of this amendment to the law,

The cap is enshrined in law, with penalties for violations

It is specified as “45 hours per month, 360 hours per year.”

 

In cases where both the employee and the employer agree due to unforeseen circumstances (special provision), the following applies as the upper limit:

 

(1) As a general rule, 45 hours per month and 360 hours per year... Article 36, Paragraph 4

・Set a maximum number of overtime hours that cannot be exceeded even under special provisions

 

(1) 720 hours per year (average of 60 hours per month) ... Article 36, Paragraph 5

(2) Set a cap that cannot be exceeded even in cases where the administrative workload temporarily increases, within the limit of 720 hours per year

a. An average of no more than 80 hours over a 2- to 6-month period (including work on holidays) ... Article 36, Paragraph 6, Item 3

b. Less than 100 hours in a single month (including work on holidays) ... Article 36, Paragraph 6, Item 2

c. Months in which the hours exceed the standard (45 hours per month) are limited to a maximum of six times per year... Article 36, Paragraph 5

 

(2) Treatment of the Construction Industry: The current system shall apply for five years following the enactment of this Act... Article 139, Paragraph 2

(Article 36, paragraphs (3), (4), (5), and (6), items (2) and (3), shall not apply.)

 

・The general rules will apply five years or more after the law takes effect. However, with regard to recovery and reconstruction following a disaster,

The provisions in (1) (ii) a. and b. above do not apply (*), but the goal is to apply the general rule in the future. ... Article 139, Paragraph 1

*Since Article 33 of the Labor Standards Act is limited to disasters and other events that cannot be predicted in advance, it does not apply to recovery and reconstruction efforts unless there is a temporary need.

Source:Ministry of Land, Infrastructure, Transport and Tourism

 

Simply put, this means it will become harder to work.

Even if employees want to work, if the company faces penalties, it’s only natural that the company will tell them not to work or do overtime.

Given the current salary structure in Japan, it’s a world where you’re only as good as the overtime you put in.

In other words, to put it simply, the construction schedule will be extended.

Consequently, general and administrative expenses, common temporary facility costs, and other such expenses will increase, leading to a higher contract amount.

Since this applies to the entire industry, an increase in total contract value means that the number of construction projects will decrease.

 

When construction projects decline, price wars break out, and both general contractors and subcontractors end up struggling.

With the subcontracting workforce aging and shrinking rapidly these days, this trend is only going to accelerate, isn't it?

It’s just like the old days of low enrollment all over again. (Although the reasons were different back then.)

 

I wonder what the future holds for the construction industry...

To be honest, the thought of not being able to work makes me scared—I can’t help but imagine all sorts of things.

Well, I guess things will work out somehow.

The government really needs to do something about this... We're already short-staffed as it is...

 

See you later.