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Is Japan backpedaling on its work-style reforms?

Japan will soon stop asking companies to cap employees' overtime at 45 hours per month, leaving many wondering if it is going back on its work-style reforms.

30 Aug 2026 1 min 0
Is Japan backpedaling on its work-style reforms?

Japan has come a long way to change its culture of working long hours. But fresh moves to cut back on overtime limits are prompting some to ask if the nation is backtracking on reforms. | BLOOMBERG

Aug 30, 2026

Starting Tuesday, the labor ministry will stop universally urging companies to cap employees’ overtime at 45 hours per month, while taking measures to ensure workers’ health. 

The move, which was announced earlier this month following requests from business lobbies calling for more flexibility in work styles, has left many wondering: Is Japan backpedaling on its work-style reforms? 

The question is a pertinent one, particularly in a nation led by a workaholic prime minister. Sanae Takaichi, who pledged to “work, work, work, work and work” in her post-election speech in October and has recently drawn fire for boasting about sleeping “zero to three hours” per night, has sought to ease overtime limits to help solve Japan’s labor shortages and to drive economic growth.

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