Ordinance for Enforcement of the Labor Standards Act

An employer may, if it has obtained the consent of a worker, pay wages by the following methods; provided, however, that in the case of using the method set forth in item (iii), the employer must enable the worker to choose payment of wages by the method set forth in item (i) or (ii), and must obtain the consent of the worker after explaining to the worker the matters concerning the requirements set forth in item (iii), (a) through (f).

By transfer into the worker's account at a bank or other financial institution designated by the worker.

Payment into a deposit of the worker (limited to one that satisfies the following requirements) with a financial instruments business operator designated by the worker (meaning a financial instruments business operator prescribed in Article 2, paragraph (9) of the Financial Instruments and Exchange Act (Act No. 25 of 1948; hereinafter referred to as the "FIEA") (limited to a person that engages in the Type I Financial Instruments Business prescribed in Article 28, paragraph (1) of the FIEA, and excluding a Type I small-amount electronic public offering service provider prescribed in Article 29-4-2, paragraph (8) of the FIEA and a special unlisted securities intermediary service provider prescribed in Article 29-4-4, paragraph (7) of the FIEA); the same applies hereinafter in this item)

The deposit in the account shall not be used to purchase anything other than beneficiary certificates for securities investment trusts (hereinafter referred to in this item as "securities investment trusts"), as such term is used under paragraph (4) of Article 2 of the Act on Investment Trusts and Investment Corporation(Act No. 198 of 1951).

In the Basic Terms and Conditions of the Investment Trust as such term is used under paragraph (1) of Article 4 of the Act on Investment Trusts and Investment Corporation with respect to the beneficiary certificates purchased with the deposit in the account shall include said following matters:

That the objects of investment of the trust property are limited to the following securities (referred to as "securities" in (2)), deposits, bills, designated money trusts and call loans.

Securities set forth in Article 2, paragraph (1), item (i) of the FIEA

Securities set forth in Article 2, paragraph (1), item (ii) of the FIEA

Securities set forth in Article 2, paragraph (1), item (iii) of the FIEA

Securities set forth in Article 2, paragraph (1), item (iv) of the FIEA (excluding specified corporate bond certificates with rights to subscribe for new preferred equity investment in the case where the asset securitization plan does not provide that only the rights to subscribe for new preferred equity investment may be transferred)

Securities set forth in Article 2, paragraph (1), item (v) of the FIEA (excluding certificates of corporate bonds with share options)

Securities prescribed in Article 2, paragraph (1), item (xiv) of the FIEA (limited to those pertaining to a trust that trusts the loan claims of a bank, a cooperative structured financial institution prescribed in Article 2, paragraph (1) of the Act on Preferred Equity Investment by Cooperative Structured Financial Institution (Act No. 44 of 1993) and a financial institution set forth in the items of Article 1-9 of the Order for Enforcement of the Financial Instruments and Exchange Act (Cabinet Order No. 321 of 1965), or a trust company (limited to a trust whose beneficiary at the time of the contract pertaining to that trust is the settlor), or to a designated money trust)

Securities set forth in Article 2, paragraph (1), item (xv) of the FIEA

Securities set forth in Article 2, paragraph (1), item (xvii) of the FIEA (limited to those having the nature of the securities or certificates set forth in (i) through (vii))

Securities set forth in Article 2, paragraph (1), item (xviii) of the FIEA

Securities set forth in Article 2, paragraph (1), item (xxi) of the FIEA

Rights deemed to be securities pursuant to the provisions of Article 2, paragraph (2) of the FIEA (limited to rights that are to be indicated on the securities set forth in (i) through (ix))

Beneficial interests in a trust that trusts the loan claims of a bank, a cooperative structured financial institution prescribed in Article 2, paragraph (1) of the Act on Preferred Equity Investment by Cooperative Structured Financial Institution and a financial institution set forth in the items of Article 1-9 of the Order for Enforcement of the Financial Instruments and Exchange Act, or a trust company (limited to a trust whose beneficiary at the time of the contract pertaining to that trust is the settlor)

Rights against a foreign person that have the nature of those set forth in (xii)

That the securities, deposits, bills, designated money trusts and call loans that are the objects of investment of the trust property (referred to as "securities and similar interests" in (3) and (4)) are those whose period until redemption or maturity (referred to as the "remaining period" in (3)) does not exceed one year.

That the average remaining period of the securities and similar interests incorporated into the trust property (meaning the period obtained by dividing the total amount obtained by multiplying the remaining period of each of the securities and similar interests by the amount of those securities and similar interests incorporated, by the total amount of those securities and similar interests incorporated) does not exceed 90 days.

That the proportion of the total amount of the trust property accounted for by the value, which formed the basis for calculating that total amount of the trust property, of securities and similar interests issued or handled by a single juridical person or other organization (referred to as a "juridical person, etc." in (5)) (excluding national government bond certificates, government-guaranteed bonds (meaning bonds for which the government guarantees the redemption of the principal and the payment of interest) and call loans whose period until repayment (excluding days on which the company that makes the loan and is the trustee of the securities investment trusts concerned is closed for business) is five days or less (referred to as "specified call loans" in (5))) is 5 percent or less.

That the proportion of the total amount of the trust property accounted for by the value, which formed the basis for calculating that total amount of the trust property, of specified call loans handled by a single juridical person, etc. is 25 percent or less.

An investment contract concerning said deposit (a contract with respect to dealing of a deposit and purchase, etc. of beneficiary certificates conducted between a worker and a financial instruments business operator) shall include the following items.

That payment into the deposit can be made in units of one yen.

That refunds of the deposit and of an amount equivalent to the beneficial interests in securities investment trusts can be made in units of one yen on the day on which a request for them is made.

A transfer of funds into an account, pertaining to the Type II Funds Transfer Service prescribed in Article 36-2, paragraph (2) of the Payment Services Act (Act No. 59 of 2009; hereinafter referred to as the "Payment Services Act") (hereinafter simply referred to as the "Type II Funds Transfer Service"), of the one designated by the worker from among the funds transfer service providers prescribed in Article 2, paragraph (3) of the Payment Services Act that carry on the Type II Funds Transfer Service and that have received the designation of the Minister of Health, Labour and Welfare as satisfying the following requirements (hereinafter referred to as "designated funds transfer service providers")

That, with respect to an account used for transfers of funds pertaining to the payment of wages (hereinafter simply referred to as an "account"), it has taken measures to ensure that the amount of the obligations concerning exchange transactions that it owes to a worker does not exceed 1,000,000 yen, or measures to promptly reduce that amount to 1,000,000 yen or less if that amount has exceeded 1,000,000 yen.

That it has a mechanism guaranteeing that, when it has filed a petition for the commencement of bankruptcy proceedings or when the performance of the obligations it owes in connection with exchange transactions has otherwise become difficult, the full amount of the obligations concerning exchange transactions that it owes to a worker with respect to an account will be promptly paid to that worker.

That it has a mechanism for compensating for a loss when, with respect to an account, the worker has incurred a loss with regard to the obligations concerning exchange transactions that it owes to the worker because the performance of those obligations has become difficult due to an unauthorized exchange transaction against the worker's will or any other reason not attributable to the worker.

That, with respect to an account, it has taken measures to enable it, unless there are special circumstances, to perform the obligations concerning exchange transactions that it owes to a worker for at least ten years from the day on which the last transfer of funds pertaining to that account was made.

That it has taken measures to enable transfers of funds into an account to be made in units of one yen.

That, with respect to the receipt of the amount pertaining to a transfer of funds into an account, it has taken measures to enable that receipt to be made in units of one yen by a method using an automatic cash dispenser or another method by which receipt in currency is possible, and measures to enable that receipt to be made at least once a month without bearing the fees or other expenses pertaining to that method.

That it has a system enabling it to report to the Minister of Health, Labour and Welfare in a timely manner on the status of implementation of its operations concerning the payment of wages and on its financial condition.

That, beyond what is set forth in (a) through (g), it has the technical capability to carry out the operations concerning the payment of wages properly and reliably, and has sufficient social credibility.

An employer may pay, with the consent of the worker, retirement allowances by any of the methods set forth in the following items as well as in the preceding paragraph:

To deliver the worker a check which has been issued by a bank or other financial institution and payable by that bank or other financial institution.

To deliver the worker a check guaranteed by a bank or other financial institution.

To deliver said worker a certificate which shows the rights related to debts owed by the postal savings bank regarding its exchange transactions as set forth in Article 94 of the Postal Service Privatization Act (Act No. 97 of 2005).

With regard to the application of the provisions of the preceding paragraph, when the provisions of paragraph (1) of Article 24 of the Act applies to local public officers, "a check" referred to in item (i) of the preceding paragraph shall be replaced with "a check or a check issued by the local public entity concerned."

A person that seeks to receive the designation of the Minister of Health, Labour and Welfare referred to in paragraph (1), item (iii) of the preceding Article (simply referred to as "designation" in Articles 7-6 through 7-8) must submit a written application to the Minister of Health, Labour and Welfare, attaching documents certifying that the person carries on the Type II Funds Transfer Service and satisfies the requirements set forth in (a) through (h) of that item.

When a designated funds transfer service provider changes any of the matters pertaining to the requirements set forth in Article 7-2, paragraph (1), item (iii), (a) through (h), it must notify the Minister of Health, Labour and Welfare to that effect in advance.

When a designated funds transfer service provider has registered a change under the provisions of Article 41, paragraph (1) of the Payment Services Act or has given notification of a change under the provisions of paragraph (3) or (4) of that Article, it must notify the Minister of Health, Labour and Welfare to that effect without delay.

When the Minister of Health, Labour and Welfare finds it necessary in order to ensure the proper and reliable implementation of the operations concerning the payment of wages, the Minister may request a designated funds transfer service provider to report on the status of implementation of its operations concerning the payment of wages and on its financial condition, or request it to take necessary measures.

The Minister of Health, Labour and Welfare may rescind the designation when a designated funds transfer service provider falls under any of the following.

When a disposition under the provisions of Article 55 or Article 56, paragraph (1) or (2) of the Payment Services Act has been made

When, beyond what is set forth in the preceding item, it has ceased to satisfy the requirements set forth in Article 7-2, paragraph (1), item (iii), (a) through (h)

When it has received the designation by wrongful means

When the Minister of Health, Labour and Welfare has rescinded a designation pursuant to the provisions of the preceding paragraph, the Minister must give public notice to that effect.