Government measures in key jurisdictions 4th edition - Flipbook - Page 82
Japan
On 10 June the FSA requested financial institutions to support borrowers by:
•
(i) Responding appropriately to requests from borrowers as those who have already been
provided with loans may want additional loans due to the prolonged impact of Covid-19,
•
(ii) promptly and actively providing support having regard to the situation of borrowers,
including provision of funds as required until other government-funded support become
available to them, and
•
(iii) not judging whether to support borrowers only based on pro forma checkpoints, such as
financial deficits, excess liabilities or downgrading borrower categorisation, but instead giving
utmost consideration to the real situation of the borrowers.
On 17 July the FSA announced that it will accept applications and filings made to it by financial
institutions via email and without seals or stamps, which had previously been required on original
copies before Covid-19.
Employment
What financial support
is the government
providing to businesses
and to individuals on
employment issues?
1. Employment Adjustment Subsidy System
Japan currently has an “Employment Adjustment Subsidy” (Koyochosei-Joseikin) system; this system
has been revised by the Japanese government to help businesses suffering as a result of Covid-19. The
system is designed to help employers avoid termination by covering part or whole of the Leave
Allowance paid by employers to employees who were made to take leave (in Japan, the law requires
the employers to pay 60% or more of the average wage of the employees when the employers make
its employees take leave (the “Leave Allowance”)) (up to a maximum of JPY15,000 per employee per
day and a maximum of 100 days in any 12 months (but disregarding days in the period 1st April to
30th September 2020 if the subsidy was requested in that period)) during the period the employees
are furloughed. This revised system shall apply during the period from 1st April to 30th September
2020. The subsidy will cover 100% of the amount paid by employers to their employees for their
leave allowance (which is 60% of their salary) required by law, and if employees voluntarily paid a
leave allowance of more than 60% of their employees' salary, the subsidy will cover 100% of
such amount paid by employer. Application for the subsidy is made to the competent Prefectural
Labour Bureau or Employment Service Center; it can also be done online application.
2. Support other than the Employment Adjustment Subsidy System
The government is providing special benefits to employers that provide extra paid leave for
parents who have children affected by school closures relating to the Covid-19 situation for the
period from 27th February to 30th September 2020.
For a summary of issues on employment in the context Covid-19, please visit our website here.
Insolvency
As of 31 August 2020, the government has not made any changes to insolvency legislation.
Has the
government made
any changes
to insolvency
legislation?
Government measures in key jurisdictions
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