Freelance Law: Companies Must Make Efforts to Reform Their Mindset

Editorial

15:54 JST, July 12, 2025

It is unacceptable to outsource work or reduce remuneration in a way that disrespects freelancers, who are not affiliated with a company and take on work on an individual basis. Companies need to work to create an environment in which freelancers can work with peace of mind.

The Japan Fair Trade Commission (JFTC) has issued a recommendation to publishing companies Shogakukan Inc. and Kobunsha Co., demanding that they prevent a recurrence of violations of the law on improvement of transactions between freelancers and companies.

According to the JFTC, when the two companies outsourced production work for magazines and other publications to freelance writers and photographers, they did not clearly indicate the nature of the work or when their remuneration would be paid by, delaying payment to them.

The JFTC also issued a similar recommendation to Shimamura Music, a major musical instrument sales company that outsourced work related to performances at events to freelance musicians and others. It also asked animation and game production companies to correct their commissioning methods and other practices.

Freelancers tend to feel like they have no choice but to accept the situation if they are asked by companies to work based on verbal assurances or if their remuneration is reduced, fearing that they will lose work. Companies should be aware that outsourcing methods in a manner that takes advantage of the weak position of freelancers can lead even to a loss of trust in themselves.

With the diversification of work styles, the number of people whose primarily role is that of a freelancer stands at 2 million. The types of profession vary widely, including designers, programmers and interpreters.

For companies, freelancers with whom they have a long professional relationship and who can respond to urgent work requests are appreciated. For freelancers, this may also be an advantage.

Even so, it cannot be helped if accusations of unscrupulousness are leveled at the companies over such practices as issuing unreasonable assignments and only providing low levels of remuneration.

The freelance law came into effect in November last year for the purpose of protecting freelancers. It also requires companies to take measures to prevent workplace and sexual harassment toward freelancers. In addition to strengthening employee training, it is essential to establish an in-house consultation section.

The challenge is that knowledge of the content of the law has not become widespread in society. The government should not only make the law well-known among companies, but should also have freelancers understand that checking business conditions in advance and entering into an equal contract with companies will lead to their own protection.

Freelancers are not considered “workers” under the Labor Standards Law and are therefore not covered by regulations on working hours or minimum wages. As a result, it is said that “fake freelancers,” those who work in an identical manner to company employees but whom the companies are exempt from providing such remuneration as overtime, are common.

Companies must not regard freelancers as cheap labor and use them merely for their own convenience. It is important for the government to investigate the actual situation and take concrete measures.

(From The Yomiuri Shimbun, July 12, 2025)