Freelance Law: Companies Should Take Lead in Protecting Workers in Weak Position

Yomiuri Shimbun

27-04-2025

Freelancers who receive jobs from companies are in a weak position. The Japan Fair Trade Commission has taken steps to correct problematic transactions and prevent these workers from being treated unfairly.
It is hoped that company executives will take this opportunity to thoroughly comply with the rules for transactions with such workers.
Based on the Freelance Law, the JFTC has issued administrative guidance to 45 companies in four industries, such as animation production, calling for them to fix how they commission freelancers. This is the first time such guidance has been given since the law took effect last November.
The law requires, among other things, that businesses outsourcing work to freelancers specify the details of the work and the amount of remuneration in document form or by email and pay for the work within 60 days of completion.
Freelancers, who are in a weak position, often receive job requests verbally, and some have experienced companies cutting their pay or asking them to work without days off to meet deadlines, taking advantage of their weak position. The law is aimed at rectifying such practices.
The recently issued administrative guidance has revealed that unfair practices in transactions with freelancers were not corrected even after the law came into force. The JFTC needs to strengthen its monitoring.
The JFTC had been investigating four industries that are said to have had many complaints from freelancers. These are the animation, gaming, fitness club and relaxation services industries.
After the law went into effect, the JFTC made a thorough investigation of 77 companies in these four industries and found violations at slightly less than 60% of them, or 45 firms.
Specifically, one company commissioned freelancers to create illustrations for games without specifying how much they would be paid or when the company would receive the work. Among fitness club operators and other companies, the JFTC has also found cases where specific payment due dates were not set.
These are prime examples of the sorts of practices prohibited under the law. Companies that place orders must take the guidance seriously and put internal systems in place to ensure proper business transactions.
According to a survey by the Internal Affairs and Communications Ministry, the number of people who primarily work as freelancers comes to 2.09 million. Freelancers are typically IT engineers, animators, writers or interpreters.
As working styles diversify, it will become increasingly important to aim for a society where freelancers and companies can grow together.
The government is looking to cultivate Japanese-made anime and games as growth industries by exporting them overseas. To strengthen the development of human resources in anime production, the government reportedly plans to establish a new support organization by the end of this fiscal year.
Many young people aspire to become animators or game creators. Improving the working environment for freelancers will likely contribute to the development of these sectors.
(From The Yomiuri Shimbun, April 27, 2025)