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Factors contributing to labor law violations and employees' subjective perceptions of “black companies”: focus on workplace characteristics and human resource management

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Article

Kobayashi, Toru

Japan Labor Review

2016

13

4

Autumn

47-82

clandestine employment ; human resources management ; labour law ; motivation ; overtime ; statistics

Japan

Law

English

Bibliogr.

"This article deals primarily with two analyses. The first is an analysis of factors contributing to uncompensated overtime, failure or inability to take paid leave, and coerced resignation, all of which are frequently cited as labor law violations, and the correlations between each of these issues and business performance. The second examines which issues, including the above labor law violations as well as workplace harassment and so forth, are most crucial in shaping employees' perceptions of their employers as “black companies,” defined as rogue companies or those that habitually flout labor standards, which have increasingly been recognized as a social issue. The results of the analyses indicated that while harassment and unreasonable quotas enhanced the perception of companies as being “black,” the most clearly identifiable factors were uncompensated overtime, failure or inability to take paid leave, and coerced resignation. In addition, it was found that uncompensated overtime had a statistically significant positive effect on workplaces' ordinary income growth over the past three years, showing that over the short term, companies were rewarded for violating the rules with commensurate profits."

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