Labor & Employment

When a dismissal or a requested resignation is challenged

An employee who signed a resignation agreement later sends a notice, through a lawyer, saying that the agreement is invalid. An employee who was given notice of dismissal sends a written demand to be allowed to work, together with a claim for wages. An employee refused a request to resign voluntarily, was dismissed on the ground of poor work performance, and has applied for labor tribunal proceedings, a Japanese court procedure for individual employment disputes. The legal relationships surrounding the end of employment can turn into disputes in these ways.

At this stage, a company can easily fall into trying to decide first whether its own judgment was correct. What is needed first, however, is to check the records made at the time. The company needs to check the records of guidance given to the employee, the course of the meetings held, the wording of the notice, and the basis relied on in the rules of employment.

The framework to be considered also changes according to what is actually in dispute. The facts to be checked, and the response, differ depending on whether a resignation agreement was concluded, whether an agreement that was concluded may still be rescinded, and whether the reason for the dismissal is the employee's ability or conduct at work, misconduct, or the company's business circumstances. This page sets out those distinctions and how each may be approached.

Last updated: September 18, 2026

What to check first

The following are matters we ask you to share with us, so far as they are known, when you contact us. You can contact us even at a stage where it has not been settled whether the company's judgment was correct.

The documents received from the other party, and any procedural deadlines — the company preserves the notice of objection, the demand, and any emails from the other party's lawyer, and checks what the other party is seeking, the deadline by which a response is requested, and whether any documents from the court are included. If an application for labor tribunal proceedings or a summons has arrived, the company checks the deadline for filing a written answer and the date of the first hearing.

The employment contract and the rules of employment — the company secures the employment contract, the version of the rules of employment that applied at the relevant time together with material showing how they were made known to employees, the notice of dismissal, and the resignation agreement. Where the rules have been revised, the company checks which version applies.

The course of events from the request to resign through to the notice or the agreement — the company sets out, in chronological order and by speaker, the dates and times of the meetings, who attended, what was said, and how the employee responded. It checks whether recordings, notes or emails remain.

The underlying records supporting the facts the company relies on as its reasons — the company preserves the employee's appraisals, records of guidance given, material showing that the work of the business was affected, records relating to misconduct, and the employee's own explanation. It secures the material created at the time, rather than material prepared afterwards.

The nature of the employment relationship and the type of measure the company took — the company checks whether the contract is for an indefinite or a fixed term, whether the employee was within a probationary period, whether what was given was notice of ordinary dismissal or of disciplinary dismissal, or whether the matter went no further than a request to resign. It also checks whether advance notice of dismissal was given and whether an allowance in lieu of advance notice was paid.

Whether circumstances restricting dismissal are present — the company checks the timing of the measure in relation to matters such as absence from work for medical treatment for an injury or illness arising in the course of employment, leave before and after childbirth, childcare leave, trade union activities, and complaints of harassment.

The current treatment of work, wages and social insurance — the company checks whether the employee is still working, whether wages are being paid, and how the employee's social insurance status has been handled. Where reinstatement is being sought, it also checks what exactly is being requested.

On the basis of the records available, we set out what is in dispute and consider the order in which matters should be answered and the direction a resolution may take.

How we can helpChecking the content of notices and claims and the deadlines / organizing the course of events leading to the dismissal or resignation and the records of it / handling a certificate stating the reason for the dismissal / considering wages for the period after dismissal / preparing a written reply and negotiating / considering resolution by agreement / responding in labor tribunal proceedings and litigation

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Contents

1. Which ending of the employment relationship is in dispute
2. Checking the reasons for the dismissal and the procedure followed
3. Responding to an objection or a request for reinstatement after notice of dismissal
4. Considering how the dispute may be resolved
Key legislation and official sources
Frequently asked questions

1. Which ending of the employment relationship is in dispute

Saying that "the dismissal is in dispute" covers two different situations: cases where the issue is whether a resignation agreement was concluded, and cases where the issue is the validity of the dismissal itself. Where the matter is a dismissal, the framework for analysis also changes according to the reason the company has given.

Conduct during a request to resign, and the conclusion and validity of a resignation agreement

A request to resign invites the employee to resign and asks the employee to decide; the employee is under no obligation to agree to it. Accordingly, where the manner of the request goes so far as to make free decision-making difficult — for example, where an employee who has made clear an intention not to resign is pressed repeatedly, over long periods and on many occasions, with dismissal being hinted at — the request may be unlawful and may constitute a tort. In such a case there are risks that the resignation agreement may be denied effect and that the employer may become liable in damages.

Even where an employee has signed a resignation agreement prepared following such a request, that signature does not by itself settle the validity of the agreement. Where there is mistake, fraud or duress meeting the requirements set out in the Civil Code, the manifestation of intention may be rescinded, and an employee may assert that the resignation agreement is rescinded. The company needs to check how the resignation came about, what motivated it, what was explained to the employee and how, and what was said at the meetings at which the request to resign was made and the resignation agreement concluded.

Ordinary dismissal for reasons of ability, conduct at work or workplace order

An ordinary dismissal that lacks objectively reasonable grounds and is not considered appropriate in general societal terms is treated as an abuse of right and is void. The company needs to check whether the facts it relies on as the reason for the dismissal, and the seriousness of those facts, can be supported by evidence. An assessment that the employee "lacks ability" or "does not work well with others" does not by itself determine the outcome.

Disciplinary dismissal for misconduct

A disciplinary dismissal that, in light of the nature and manner of the employee's conduct and the other circumstances, lacks objectively reasonable grounds and is not considered appropriate in general societal terms is treated as an abuse of right and is void.

When a disciplinary dismissal is under consideration, the company checks the provision relied on, the grounds for discipline and the types of discipline provided for, whether that provision applied to the employee concerned and had been made known to the employee, and whether the procedure followed was appropriate.

On a related point, an employer that regularly employs 10 or more workers and that establishes provisions on sanctions must state their types and degrees in the rules of employment and file them with the authorities. An employer must also make the rules of employment known to its workers by a method prescribed by law.

Dismissal for business reasons as part of a workforce reduction

A dismissal for business reasons as part of a workforce reduction is generally analyzed from the standpoints of the need to reduce the workforce, the efforts made to avoid dismissal, the reasonableness of the selection of those to be dismissed, and the adequacy of the procedure followed, including explanation and consultation.

2. Checking the reasons for the dismissal and the procedure followed

Contract term, rules of employment, and restrictions on dismissal

Under a fixed-term employment contract, an employer may not dismiss the worker before the end of the contract term unless there are unavoidable grounds. Dismissal during the term and a refusal to renew at the end of the term need to be treated as separate questions.

In addition, subject to the exceptions provided by law, an employer may not dismiss a worker during a period of absence from work for medical treatment for an injury or illness arising in the course of employment, or during the statutory period of leave before and after childbirth, nor during the 30 days following either period. This needs to be distinguished from leave for injury or illness not arising in the course of employment.

As to advance notice of dismissal, subject to the exceptions provided by law, an employer must give at least 30 days' advance notice, and, where no such notice is given, must pay at least 30 days' average wages. The notice period may be shortened by the number of days for which average wages are paid. Exclusions are provided for workers employed on a daily basis and for workers within a probationary period, among others, although the requirement does apply to a worker within a probationary period once the worker has been employed continuously for more than 14 days.

The company's explanation, and the facts and records supporting it

It is advisable to set out, in chronological order, the records made at the time and the employee's own explanation regarding the guidance given to the employee, the ways in which the work of the business was affected, and the content of any misconduct. Keeping objective facts, the parties' explanations and the company's own assessment separate makes it easier to build a stable position later.

Explanation to the employee, opportunities for guidance and improvement, and the opportunity to respond

The company checks how the facts it relies on as the reason for the dismissal or other measure were communicated to the employee, what opportunity to improve was given, and what opportunity to respond was provided before the measure was taken. These need to be checked both against what the rules of employment provide and against how matters were actually handled.

3. Responding to an objection or a request for reinstatement after notice of dismissal

The reasons already notified, and the answer given in a certificate

Where, during the period between the giving of advance notice of dismissal and the day of separation, or after separation, the worker requests a certificate stating the reason for the dismissal, the employer must, subject to the exceptions provided by law, deliver it without delay, and must not enter matters that the worker has not requested. An exception is also provided for cases where, after the day on which advance notice was given, the worker leaves employment for a reason other than that dismissal.

In answering such a request, it is important not to add new reasons that are inconsistent with the reasons already notified, and not to substitute one reason for another. Where the reason given is that the employee falls within a particular provision of the rules of employment, the certificate states the content of that provision and the facts by reason of which the employee came to fall within it. There is a risk that a certificate will be regarded as lacking specificity if it contains only abstract assessments such as "lack of ability" or "does not work well with others", or merely lists provisions of the rules of employment.

Unpaid wages for the period after dismissal

Where a dismissal is void, the employment contract is treated as having continued after the dismissal, and, on the basis that the employee became unable to provide work due to grounds attributable to the company as the party to whom the work was owed, the company cannot refuse to pay wages. That said, where the employee worked for another employer during the period after the dismissal and earned wages, the company may in some circumstances deduct those earnings from the wages payable.

A claim for wages for the period after a dismissal is analyzed by reference to the validity of the dismissal, the employee's intention and ability to work, and the circumstances on the company's side.

Separately from this, where an absence from work is due to grounds attributable to the employer, the employer must pay, for the period of absence, an allowance for absence from work of at least 60 percent of the average wage. That provision concerns the allowance for absence from work, however, and is not intended to set wages after a dismissal at 60 percent across the board.

Responding to approaches from a lawyer or a trade union

An employer may not refuse, without justifiable grounds, to engage in collective bargaining with the representatives of the workers it employs. Whether the company needs to engage in collective bargaining concerning a worker who has left employment is considered separately, by reference to that person's relationship with the company, the subjects proposed for bargaining, and how matters have developed. On this point, see the guide on responding to a request for collective bargaining.

4. Considering how the dispute may be resolved

Where continued employment or withdrawal of the dismissal is under consideration

A notice from the company to the employee withdrawing the dismissal does not, by itself, necessarily bring the dispute over the end of the employment relationship and over wages to an end. The starting points differ between a case where the company withdraws a valid dismissal and a case where the dismissal was void from the outset so that the employment contract has continued. Where withdrawal of a dismissal is under consideration, the validity of the dismissal, the conditions on which the employee would work after reinstatement, the treatment of wages and other working conditions, and the handling of the period that has already elapsed since the dismissal all need to be addressed together.

Material and issues in preparing for labor tribunal proceedings or litigation

Labor tribunal proceedings are a Japanese court procedure for individual employment disputes. Cases are heard by a panel comprising a judge and members with experience in labor relations. Where an application for labor tribunal proceedings or a summons has arrived, the company checks the deadline set by the court for filing a written answer and the date of the first hearing, and prepares on the basis of the application and the documents attached to it.

After the court has issued its decision in labor tribunal proceedings, a party may file an objection with the court within an unextendable period of two weeks from the day on which the written decision was served or the day of notification in the form provided by law. If a lawful objection is filed, the labor tribunal decision ceases to have effect, and the claim is deemed to have been brought as an action at the time the application for labor tribunal proceedings was filed. If no lawful objection is filed, the labor tribunal decision has the same effect as a settlement in court. An objection filed after the unextendable two-week period is dismissed as unlawful, so a decision has to be reached within that period.

Alongside advice on the legal risks associated with requests to resign and with dismissals, and advice on labor tribunal proceedings and litigation, our ongoing legal advisory services are available where a company wishes to review its rules and practices on the ending of employment on a continuing basis, and our in-house training services are available where a company wishes to share with its managers how records of guidance given to employees should be kept and what steps need to be taken before a dismissal or similar measure.

Key legislation and official sources

English translations of legislation are provided for reference. The Japanese texts are authoritative.

Where it appears	Legislation	Source type
Ordinary dismissal; disciplinary dismissal; dismissal during a fixed term	Labor Contracts Act（労働契約法）	Japanese legislation
Provisions on sanctions in, and making known, the rules of employment	Labor Standards Act（労働基準法）	Japanese legislation
Restrictions on dismissal during absence for treatment and around childbirth	Labor Standards Act（労働基準法）	Japanese legislation
Advance notice of dismissal and the allowance in lieu	Labor Standards Act（労働基準法）	Japanese legislation
Certificate stating the reason for dismissal	Labor Standards Act（労働基準法）	Japanese legislation
Allowance for absence from work due to grounds attributable to the employer	Labor Standards Act（労働基準法）	Japanese legislation
Restriction on dismissal during childcare leave	Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members（育児休業、介護休業等育児又は家族介護を行う労働者の福祉に関する法律）	Japanese legislation
Rescission for mistake, fraud or duress; wages where performance is prevented by grounds attributable to the obligee	Civil Code（民法）	Japanese legislation
Refusal of collective bargaining without justifiable grounds	Labor Union Act（労働組合法）	Japanese legislation
Objection to a labor tribunal decision and its effect	Labor Tribunal Act（労働審判法）	Japanese legislation

Legal information reviewed: 2026-09-18

Frequently asked questions

If an employee refuses a request to resign, can the company switch to dismissal?

The fact that an employee did not agree to a request to resign is not in itself a reason for dismissal. If the company dismisses the employee, separate facts and a separate course of events are needed to support the reason relied on. Where dismissal was hinted at during the request to resign, what was said and how matters developed may be examined when the dismissal is later assessed.

If an employee's work performance is poor, is an ordinary dismissal permitted?

An assessment that work performance is poor does not by itself determine the outcome. An ordinary dismissal that lacks objectively reasonable grounds and is not considered appropriate in general societal terms is treated as an abuse of right and is void. The company needs to check whether the facts it relies on as the reason for dismissal, and their seriousness, are supported by records, what opportunity to improve was given, and whether a change of position was considered.

Even if a resignation agreement has been signed, can it be challenged later?

It may be. The signature is an important fact, but it does not by itself settle the validity of the resignation agreement. Where there is mistake, fraud or duress under the Civil Code, the manifestation of intention may be rescinded. The company therefore checks how the resignation came about, what was explained to the employee, and what was said at the meeting at which the resignation agreement was concluded.

If the company pays an allowance in lieu of advance notice, does that make the dismissal valid?

The question of advance notice and the allowance in lieu of it is considered separately from the validity of the dismissal itself. Subject to the exceptions provided by law, at least 30 days' advance notice or payment of at least 30 days' average wages is required, but meeting that requirement does not necessarily make the dismissal valid.

If the company is operating at a loss, is a dismissal as part of a workforce reduction permitted?

Operating at a loss does not by itself determine the outcome. The general framework for assessment looks at the need to reduce the workforce, the efforts made to avoid dismissal, the reasonableness of the selection of those to be dismissed, and the adequacy of the procedure followed, including explanation and consultation, and each case is examined on its own facts.

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