In the case where an employer concludes an agreement under Article 37, paragraph (3) of the Act (including a resolution by a labor-management committee, a resolution by the committee on the improvement of working time arrangements and a resolution by an enterprise committee on the improvement of working time arrangements prescribed in Article 7-2 of the Improvement of Working Time Arrangements Act), the employer must reach agreement on the following matters.
使用者は、法第三十七条第三項の協定（労使委員会の決議、労働時間等設定改善委員会の決議及び労働時間等設定改善法第七条の二に規定する労働時間等設定改善企業委員会の決議を含む。）をする場合には、次に掲げる事項について、協定しなければならない。
Method of calculating the number of hours to be given as leave set forth in paragraph (3) of Article 37 of the Act (hereinafter referred to as "substitute leave")
法第三十七条第三項の休暇（以下「代替休暇」という。）として与えることができる時間の時間数の算定方法
Unit of substitute leave (The unit shall be a day or half day; if substitute leave can be given together with any other leave with the payment of wages for ordinary working hours, the unit of a day or half day shall include such leave)
代替休暇の単位（一日又は半日（代替休暇以外の通常の労働時間の賃金が支払われる休暇と合わせて与えることができる旨を定めた場合においては、当該休暇と合わせた一日又は半日を含む。）とする。）
The period where substitute leave can be given (within two months from the day following the last day of the month in which the working hours extended under Article 33 or paragraph (1) of Article 36 of the Act exceed 60 hours of that month)
The calculation of the number of hours in item (i) of the preceding paragraph shall be made by multiplying the number of working hours extended beyond 60 hours per month in accordance with Article 33 or paragraph (1) of Article 36 of the Act by the difference between the rate of premium wages payable for such extended working hours under the proviso of paragraph (1) of Article 37 of the Act in case the worker does not take substitute leave, and the rate of premium wages payable for the extended working hours under the main clause of the same paragraph in case the worker does take substitute leave (hereinafter referred to as the "conversion rate" in the following paragraph).
The number of hours prescribed by the Ordinance of the Ministry of Health, Labour and Welfare referred in paragraph (3) of Article 37 of the Act shall be obtained by dividing the number of hours of substitute leave by the conversion rate.