Blog | Manpower Thailand

Executive SummaryJapan’s new Freelancer Protection Act (FPA) took effect in November 2024. Formally entitled the “Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators,” the law should bring welcome clarity to the legal status of freelancers and provide them with some much-needed protections, including some of a type that apply mostly in employment relationships, The new law will also increase the compliance burden and risks for companies using freelancers.Note that ManpowerGroup is not a law firm. This Alert is provided to facilitate understanding the services offered by our Japanese operations. Please consult with an attorney if you have any questions about employment law in Japan.What is a freelancer?The FPA defines a “freelancer” as an individual or corporation with only a single director and no employees that engages in outsourced activities. This definition is clearly intended to exclude SMEs with multiple employees or corporate officers from the scope of the law. However, guidance from the FPA’s principal regulator, Japan’s Fair Trade Commission (FTC) notes that freelancers who rely on the help of cohabitating family members (who are not corporate officers of the company) or the occasional part-time employee will not lose their status. Of course, merely describing an arrangement as “freelancing” will not make it so even if the “freelancer” meets the definitional criteria; if it is functionally an employment relationship, the law will treat it as such.The scope of “outsourced activity” covered by the FPA is broad, including manufacturing, content creation (programming, video, text, pictures, etc.) and the provision of services. This would mean both platform-based food delivery workers and lawyers handling trials for corporate clients as solo practitioners would be freelancers.Duties of users of freelancersMost of the FPA is directed at users of freelancers, which are essentially any businesses that use them but are not freelancers themselves. The underlying assumption is that freelancers have less bargaining power compared to the companies that use them.A similar assumption underlies the Subcontractor Protection Act.[1] This is an existing law that protects subcontractors from abusive commercial practices by general contractors, in particular delays in getting paid. Some freelancers may also be subcontractors for purposes of that law. However, the FPA extends additional protections to freelancers, as well as imposing duties on a broader range of businesses who use them. [2]For example, the FPA mirrors the Subcontractor Protection Act by prohibiting the imposition of payment terms longer than sixty days on freelancers. [3] There is an exception for contractors who are further outsourcing all or a part of a job to a freelancer, in which case payment is required no later than 30 days from the contractor being paid.The FPA requires that when engaging a freelancer, a business must identify in writing (which may include e-mail or text messages) basic information about the engagement, including:Identification of the client and freelancerDate of engagementNature of engagement (deliverables or services required)The date and place of delivery of deliverables or servicesThe amount of compensation to be paid and payment dateIn addition to protecting freelancers from excessively long payment terms, the FPA also prohibits users of freelancers from engaging in various other abusive practices such as:Refusing to accept deliverables or services for reasons that are not the freelancer’s faultReducing the compensation paid to freelancers for reasons that are not the freelancer’s faultSetting prices unreasonably low compared to prices for similar services or deliverablesForcing freelancers to use services or purchase items unless there is a valid reason for doing so, such as to ensure uniformity of output or improve quality of deliverablesRequiring freelancers to provide money, services, or other benefitsRequiring the freelancer to make changes or redo deliverables when the need to do so is not the freelancer’s fault.All of these protections reflect the assumption that users of freelancers will generally be larger business concerns with greater bargaining power that can be used abusively.Employee-style protectionsThe FPA differs from the Subcontractor Protection Act in that it also extends certain protections to freelance workers that are typically associated with the employer-employee relationship. First, the FPA imposes requirements on the content of advertisements soliciting freelancers that are similar to those that apply to job listings.Second, users of freelancers will have certain obligations with respect to those who are pregnant or have child-rearing or other caregiving responsibilities. If the freelancing arrangement is of an ongoing nature, the business usermustmake reasonable accommodations for the freelancer’s situation if requested to do so by the freelancer. If the engagement is not of a continuing nature, the business user must at least make efforts to consider what accommodations might be possible.Third, users of freelancers must have measures in place to prevent harassment and other similar behavior directed at the freelancer which negatively impact the freelancing arrangement or their working environment, and to enable freelancers to raise their concerns about such behavior if it occurs. Canceling a freelancing contract or taking similar retaliatory actions against a freelancer raising such concerns is prohibited.Finally, freelancers in an ongoing arrangement must be given at least thirty days’ prior notice of the termination or non-renewal of their contract, subject to certain exceptions when doing so is not possible. During the notice period the freelancer may request an explanation of the reason for termination or non-renewal and the business user is obligated to disclose their reason.EnforcementThe dual character of the protections in the FPA makes enforcement complicated. The provisions on payment and other terms can be enforced by raising a complaint to the FTC. Potential violations of the “employment” style provisions, however, should be reported to the Ministry of Health Welfare and Labor (MHLW). Both ministries are empowered to conduct investigations, demand information and issue recommendations and orders for improvement. The Small and Enterprise Agency can also become involved in certain problem situations.There are minor criminal and civil fines for failing to comply with an order or providing false information in response to a demand. The most likely-used sanction will probably be the “name-and-shame” power that seems increasingly common in Japanese regulations.Compliance issues and solutionsThe FPA will require companies that rely on freelancers to establish at least a minimalist compliance system to use them without unintentional violation. Regulatory guidance issued with the law suggests that such violations may easily occur. For example, deducting a bank transfer fee from a payment to a freelancer will constitute an abusive “reduction in compensation” unless the freelancer has been notified at the time of the engagement.Similarly, businesses that use freelancers to create content should be clear to specify in their terms of engagement that transfer of intellectual property rights are included in the deliverables and reflected in the compensation. Unilaterally declaring the intellectual property rights to belong to the freelancer user risks being deemed an abusive practice.Just casually inquiring to multiple freelancers about their interest in possible engagements risks violating the FPA requirements on solicitations. Soliciting freelancers through technology platforms is also subject to these requirements.Finally, one interesting area where both the FPA and related regulatory guidance are silent is their applicability to freelancers working from abroad for companies in Japan. The ability to work from anywhere is one of the growing attractions of freelancing, but it remains to be seen whether freelancers abroad are protected by the FPA. From a compliance standpoint, the safe assumption should be that they are.ManpowerGroup works with a broad range of freelancers and takes pride in providing compliant workforce solutions to clients in Japan and globally. If you have any questions about this Alert, please contact: [email protected].[1] The official title is the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors.[2] The Subcontractor Protection Act generally only applies to large general contractors whose capitalization exceeds certain thresholds depending on their line of business.[3] An exception is that in the case of contractors who are further subcontracting outsourced work to freelancers, the payment deadline is no later than thirty days from when the primary contractor is paid.HR compliance is often a complex subject, and ensuring that your organization meets regulations, especially across various countries, can be challenging. At ManpowerGroup, we offer a variety of HR compliance services. Whether you need assistance locally in Thailand or regionally, we are here to help. See here for more details: https://www.manpowerthailand.com/employers/our-services-manpower/compliance-services

In the vibrant landscape of Thailand's professional world, a new narrative is emerging—one that celebrates the achievements of women who have shattered glass ceilings and ascended to leadership positions. These trailblazers are not only reshaping corporate culture but also inspiring a new generation of job seekers to dream big and pursue their ambitions with unwavering determination.As we explore the success stories of Thai women leaders, we uncover valuable insights and advice that can guide both seasoned professionals and fresh graduates in their career journeys. Whether you're looking to climb the corporate ladder, switch careers, or enter the job market for the first time, these stories of resilience and triumph will provide you with the inspiration and practical wisdom to forge your own path to success.The Changing Face of Leadership in ThailandThailand has made significant strides in promoting gender equality in the workplace over the past few decades. According to the World Economic Forum's Global Gender Gap Report 2023, Thailand has jumped five places to rank 74th among 146 countries.While there's still room for improvement, the country has shown progress, particularly in educational attainment and economic participation.This progress is reflected in the increasing number of women taking on leadership roles across various sectors. From finance to technology, healthcare to hospitality, Thai women are making their mark and proving that gender is no barrier to success.The "World of Work Outlook for Women in 2024" report by ManpowerGroup highlights that while women are increasingly entering the workforce, true gender parity remains elusive. In 2023, for every 100 men promoted from entry-level to manager, only 87 women received similar promotions. This disparity underscores the need for organizations to accelerate their gender equality initiatives.Inspiring Success Storiesขอบคุณรูปภาพจาก: https://www.siampiwat.com/main/th/group-governance-chadatip.phpChadatip Chutrakul: The Real Estate Visionary As CEO of Siam Piwat Co., Ltd., Chadatip Chutrakul has led the development of some of Bangkok's most iconic shopping destinations, including Siam Paragon and ICONSIAM. Despite challenges in a male-dominated industry, she emphasizes the importance of continuous learning and adaptation to stay ahead.ขอบคุณรูปภาพจาก: https://www.bangkokpost.com/life/social-and-lifestyle/2409213/conservation-minded-businesswomen-honoured-for-green-initiativesKhunying Natthika Wattanavekin Angubolkul: A Force in Finance As Chairperson of Kasikorn Bank, Khunying Natthika has been a driving force in Thailand's banking sector. Her story of perseverance underscores the importance of balancing career success with personal well-being.ขอบคุณรูปภาพจาก: http://changeintomag.com/index.php/change-businessChantanida Sarigaphuti: A Trailblazer in FinanceAs the Chief Financial Officer (CFO) and Treasurer at The Siam Cement Public Co. Ltd., one of the oldest producers of cement in Southeast Asia.With extensive experience in finance and management, she has played a pivotal role in driving the company's growth and innovation. Her leadership exemplifies dedication and strategic vision, inspiring future generations of women leaders in Thailand.Key Lessons from Thai Women LeadersEmbrace Continuous Learning The rapid pace of change in today's business world means that the skills and knowledge you have today may not be sufficient tomorrow. Thai women leaders consistently emphasize the importance of lifelong learning.Build a Strong Network Networking is crucial for career growth. Many successful Thai women leaders attribute part of their success to the relationships they've built over the years.Develop Resilience The path to leadership is often fraught with challenges. The ability to bounce back from failures is a common trait among successful leaders.Advocate for Yourself Many Thai women leaders stress the importance of self-advocacy. Be proactive in seeking opportunities and making your achievements known.Strive for Work-Life Balance Success shouldn't come at the cost of personal life and well-being. Many leaders emphasize maintaining a healthy work-life balanceNavigating Career Growth in ThailandFor job seekers and professionals looking to advance their careers in Thailand, understanding the local business culture is crucial. Here are some key points to keep in mind:Respect for Hierarchy: Show respect for seniority and position, which is important in Thai business culture.Building Relationships: Networking and building genuine connections can open doors to new opportunities.Continuous Improvement: Demonstrate a commitment to personal and professional development.Adaptability: Be open to change and willing to take on new challenges as Thailand's economy evolves.Work Ethic: Hard work is highly respected in Thai culture, and dedication can help you stand out.Practical Tips for Job SeekersWhether you're looking to change jobs or searching for your first position, here are some practical tips:Tailor Your Resume: Customize your resume for each position, highlighting relevant skills and experiences.Leverage Online Platforms: Use job search websites and networking platforms like LinkedIn to find opportunities.Prepare for Interviews: Research companies thoroughly and practice common interview questions.Follow Up: After submitting an application or attending an interview, follow up politely to express continued interest.Continuous Learning: Develop your skills through online courses or certifications to enhance your marketability.The success stories of Thai women leaders serve as powerful inspiration for job seekers and professionals at all stages of their careers. These trailblazers have shown that with determination, continuous learning, and resilience, it is possible to overcome barriers and achieve remarkable success.As highlighted in the ManpowerGroup report, organizations must prioritize gender equality initiatives to retain talented women. By embracing the lessons shared by these leaders and leveraging the insights from the "World of Work Outlook for Women in 2024," you can navigate your own career path successfully.The landscape of work in Thailand is evolving, offering new opportunities for those who are prepared to seize them. By combining the wisdom of successful leaders with your own passion and dedication, you can pave your own way to a fulfilling and successful career.

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