{"id":48866,"date":"2023-04-17T08:00:30","date_gmt":"2023-04-16T23:00:30","guid":{"rendered":"https:\/\/norimen.net\/wordpress\/?p=48866"},"modified":"2026-05-16T13:46:53","modified_gmt":"2026-05-16T04:46:53","slug":"construction-2024-problem","status":"publish","type":"post","link":"https:\/\/norimen.net\/en\/construction-2024-problem\/","title":{"rendered":"I wonder what will happen to the construction industry with the \"2024 Problem\"?"},"content":{"rendered":"<p>Hello, everyone.<\/p>\n<p>This is Enta.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-48819\" src=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2023\/04\/2023-01-12-10.16.14-1.jpg\" alt=\"Drilling Machine\" width=\"600\" height=\"450\" srcset=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2023\/04\/2023-01-12-10.16.14-1.jpg 600w, https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2023\/04\/2023-01-12-10.16.14-1-300x225.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/p>\n<p>The \"2024 Problem\" seems to be causing major headaches, particularly for large general contractors.<\/p>\n<p>The other day, I was having a drink with someone from a major general contractor and got some information from them.<\/p>\n<p>&nbsp;<\/p>\n<p>As some of you may already know,<\/p>\n<p>Regulations capping working conditions will take effect in April 2024.<\/p>\n<p>&nbsp;<\/p>\n<p>Until now,<\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #0000ff;\">\u30fbUp to 8 hours per day (excluding a 1-hour break)<\/span><\/strong><\/span><br \/>\n<span style=\"font-size: 130%;\"><strong><span style=\"color: #0000ff;\">\u30fbUp to 40 hours per week<\/span><\/strong><\/span><\/p>\n<p>There was a statutory working hour limit, and any hours worked beyond that were considered overtime.<\/p>\n<p>As a result of this amendment to the law,<\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #ff0000;\">The cap is enshrined in law, with penalties for violations<\/span><\/strong><\/span><\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #ff0000;\">It is specified as \u201c45 hours per month, 360 hours per year.\u201d<\/span><\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>In cases where both the employee and the employer agree due to unforeseen circumstances (special provision), the following applies as the upper limit:<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #ff0000;\">(1) As a general rule, 45 hours per month and 360 hours per year... Article 36, Paragraph 4<\/span><\/strong><\/span><\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #ff0000;\">\u30fbSet a maximum number of overtime hours that cannot be exceeded even under special provisions<\/span><\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #ff0000;\">(1) 720 hours per year (average of 60 hours per month) ... Article 36, Paragraph 5<\/span><\/strong><\/span><\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #ff0000;\">(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<\/span><\/strong><\/span><\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #ff0000;\">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<\/span><\/strong><\/span><\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #ff0000;\">b. Less than 100 hours in a single month (including work on holidays) ... Article 36, Paragraph 6, Item 2<\/span><\/strong><\/span><\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #ff0000;\">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<\/span><\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #ff0000;\">(2) Treatment of the Construction Industry: The current system shall apply for five years following the enactment of this Act... Article 139, Paragraph 2<\/span><\/strong><\/span><\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #ff0000;\">(Article 36, paragraphs (3), (4), (5), and (6), items (2) and (3), shall not apply.)<\/span><\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #ff0000;\">\u30fbThe general rules will apply five years or more after the law takes effect. However, with regard to recovery and reconstruction following a disaster,<\/span><\/strong><\/span><\/p>\n<p><span style=\"font-size: 130%;\"><strong><span style=\"color: #ff0000;\">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<\/span><\/strong><\/span><\/p>\n<p>*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.<\/p>\n<p>Source:<a title=\"Ministry of Land, Infrastructure, Transport and Tourism\" href=\"\/\/www.mlit.go.jp\/policy\/shingikai\/content\/001314888.pdf\" target=\"_blank\" rel=\"noopener\">Ministry of Land, Infrastructure, Transport and Tourism<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>Simply put, this means it will become harder to work.<\/p>\n<p>Even if employees want to work, if the company faces penalties, it\u2019s only natural that the company will tell them not to work or do overtime.<\/p>\n<p>Given the current salary structure in Japan, it\u2019s a world where you\u2019re only as good as the overtime you put in.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-45494\" src=\"https:\/\/norimen.net\/wordpress\/wp-content\/uploads\/2021\/10\/sowa20180523.jpg\" alt=\"Overtime\" width=\"500\" height=\"500\" \/><\/p>\n<p>In other words, to put it simply, the construction schedule will be extended.<\/p>\n<p>Consequently, general and administrative expenses, common temporary facility costs, and other such expenses will increase, leading to a higher contract amount.<\/p>\n<p>Since this applies to the entire industry, an increase in total contract value means that the number of construction projects will decrease.<\/p>\n<p>&nbsp;<\/p>\n<p>When construction projects decline, price wars break out, and both general contractors and subcontractors end up struggling.<\/p>\n<p>With the subcontracting workforce aging and shrinking rapidly these days, this trend is only going to accelerate, isn't it?<\/p>\n<p>It\u2019s just like the old days of low enrollment all over again. (Although the reasons were different back then.)<\/p>\n<p>&nbsp;<\/p>\n<p>I wonder what the future holds for the construction industry...<\/p>\n<p>To be honest, the thought of not being able to work makes me scared\u2014I can\u2019t help but imagine all sorts of things.<\/p>\n<p>Well, I guess things will work out somehow.<\/p>\n<p>The government really needs to do something about this... We're already short-staffed as it is...<\/p>\n<p>&nbsp;<\/p>\n<p>See you later.<\/p>","protected":false},"excerpt":{"rendered":"<p>Hello, everyone. This is Enta. It seems the \u201c2024 Problem\u201d is causing major headaches, especially for large general contractors. The other day, I had a drink with someone from a super general contractor and got some information from them.   As some of you may already know, starting in April 2024, there will be caps on working conditions\u2026<\/p>","protected":false},"author":2,"featured_media":48867,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[753,1178,1679,4020,5668,5669,5670],"class_list":["post-48866","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-753","tag-1178","tag-1679","tag-4020","tag-5668","tag-5669","tag-5670"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.2 (Yoast SEO v28.2) - 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