Whistleblower Protection Act

The purpose of this Act is to protect whistleblowers and to ensure compliance with the provisions of laws and regulations relating to the protection of the lives, physical wellbeing, properties, and other interests of citizens by providing for the invalidity of dismissal of, and the prohibition, etc. of disadvantageous treatment of, whistleblowers on the grounds of whistleblowing and the measures, etc. to be taken by business operators and administrative bodies with regard to whistleblowing, thereby contributing to the stability of the lives of citizens and to the sound development of the society and economy.

The term "whistleblowing" as used in this Act means a report made by a person stated in the following items with no wrongful purpose such as a purpose of acquiring a wrongful gain or causing damage to others, that a reportable fact that has occurred, or is about to occur, concerning a business operator provided for in the respective items (meaning a corporation or other organization and an individual who engages in business; the same applies below) (referred to below as "recipient of services"), or its officer (meaning a corporate director, executive officer, accounting advisor, corporate auditor, director, inspector, and liquidator, and any other person who is engaged in the management of the corporation (excluding a financial auditor) under the provisions of laws and regulations (meaning laws as well as orders based on them; the same applies below); the same applies below), employee, agent, or other persons engaged in the business of the recipient of services, to the recipient of services or a person designated by the recipient of services in advance (referred to as "recipient of services or other designated person"), to an administrative body with the authority to impose a disposition (meaning an order, revocation, and other acts involving the exercise of public authority; the same applies below) or issue a recommendation, etc. (meaning a recommendation and other acts which are not dispositions; the same applies below) with regard to the reportable fact, or a person designated by the administrative body in advance (referred to as "administrative body or other designated person" in paragraph (1), item (ii) of the following Article and Article 6, paragraph (1), item (ii)), or to a person to whom reporting the reportable fact is considered necessary in order to prevent their occurrence or the spread of damage caused by them (including persons who suffered or are likely to suffer damage because of the reportable fact, but excluding persons who are likely to cause harm to the competitive position or other legitimate interests of the recipient of services; the same applies in paragraph (1), item (iii) of the following Article and Article 6, paragraph (1), item (iii)).

a dispatched worker (meaning a dispatched worker as prescribed in Article 2, item (ii) of the Act on Ensuring the Proper Operation of Worker Dispatching Services and Protecting Dispatched Workers (Act No. 88 of 1985; referred to as the "Worker Dispatching Act" in Article 4, paragraph (1), item (i)); the same applies below) or a former dispatched worker: the business operator that receives, or received within one year before the date of the relevant report, the services of worker dispatch (meaning worker dispatch as prescribed in item (i) of the same Article; the same applies in Article 4 and Article 5, paragraph (2)(1)) related to the relevant dispatched worker or the former dispatched worker;

a person who is or was a specified person engaged in entrusted business (meaning a specified person engaged in entrusted business as prescribed in Article 2, paragraph (2) of the Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators (Act No. 25 of 2023); the same applies below):a business operator who entrusts or entrusted business (referring to the business entrustment prescribed in paragraph (3) of the Article; the same applies below in this item and Article 5) to the current or former specified entrusted business operator (meaning a specified entrusted business operator as prescribed in paragraph (1) of the Article; the same applies below) regarding the specified person engaged in entrusted business, or a business operator who has entrusted business within one year before the date of the report;

a worker or a former worker, or a dispatched worker or a former dispatched worker, who is or was engaged in dispatched worker (referred to below as a "worker, etc." in this item and Article 11, paragraph (2)), or a former worker, etc., or a person who is or was a specified person engaged in entrusted business, any of whom are or were engaged in the business within one year before the date of the report, when a business operator specified in the preceding twothree items conducts or conducted the business based on a contract for work or other contract with another business operator: the relevant other business operator;

the facts constituting the grounds for a disposition based on the provisions of this Act and in the laws listed in the Appended Table, if the violation of the disposition constitutes the facts stated in the preceding item (including the facts constituting the grounds for issuing any other disposition, or grounds for issuing a recommendation, etc. or other act, if the facts constituting the grounds for the disposition constitute the violation of any other disposition based on the provisions of this Act or any of the laws listed in the Appended Table or the non-compliance with a recommendation, etc. or other act).

Chapter II Invalidity of Dismissal of, and Prohibition of Disadvantageous Treatment of, Whistleblowers on the Grounds of Whistleblowing

Invalidity of Dismissal(Prohibiting Disadvantageous Treatment of Workers)

The dismissal of a worker carried out by a business operator provided for in Article 2, paragraph (1), item (i) (limited to one that directly employs the worker; the same applies in Article 9) is void if it is on the grounds that the worker, being a whistleblower, has conducted of the preceding Article must not dismiss or otherwise treat in a disadvantageous manner a whistleblower who is or was employed by the business operator on the grounds of conducting whistleblowing provided for in the respective each of the following items in the cases stated in those the respective items.:

the whistleblower has reasonable grounds to believe that harm to the life or physical wellbeing of an individual, or damage to the property of an individual (excluding an individual conducting business; the same applies below in this sub-item (f)) (limited to irreparable damage or substantial amount of damage to an extremely large number of individuals directly caused by the reportable fact; the same applies in Article 6, paragraph (1), item (ii), (b) and item (iii), (b)) has occurred, or there is an imminent danger of its occurrence.

Dismissal or other disadvantageous treatment (in the case of disadvantageous treatment other than dismissal, limited to disciplinary action (meaning sanctions specified by the business operator in the rules of employment pursuant to the provisions of Article 89 of the Labor Standards Act (limited to the part relating to item (ix)) or sanctions specified in the labor contract between the business operator and the workers); referred to as "specific disadvantageous treatment such as dismissal" in the following paragraph and Article 21, paragraph (1)) by a business operator provided for in paragraph (1), item (i) of the preceding Article in violation of the provisions of the preceding paragraph is void.

If a whistleblower is subjected to specific disadvantageous treatment such as dismissal within one year from the day on which the whistleblower conducts a whistleblowing provided for in the items of paragraph (1) (or, if the business operator provided for in paragraph (1), item (i) of the preceding Article carries out the specific disadvantageous treatment such as dismissal with the knowledge that a whistleblowing provided for in paragraph (1), item (ii) or (iii) has been made, within one year from the day on which the business operator comes to know of the whistleblowing), with regard to the application of the provisions of the preceding paragraph, the specific disadvantageous treatment such as dismissal is presumed to have been carried out on the grounds that the whistleblowing was made.

Invalidity of Cancellation of a Worker Dispatch Contract(Prohibiting Disadvantageous Treatment of Dispatched Workers)

The cancellation of a worker dispatch contract (meaning a worker dispatch contract prescribed in Article 26, paragraph (1) of the Worker Dispatching Act) by a business operator provided for in Article 2, paragraph (1), item (ii) is void if it is on the grounds that a whistleblower who is a dispatched worker working under the directions and orders of a business operator provided for in Article 2, paragraph (1), item (ii) (limited to a business operator receiving provision of the services of worker dispatch related to the relevant dispatched worker; the same applies in this Article and Article 5, paragraph (2)) A business operator provided for in Article 2, paragraph (1), item (ii) (limited to a business operator receiving provision of worker dispatching services related to the relevant dispatched worker; the same applies in the following paragraph) must not conduct any of the following acts on the grounds that a whistleblower who is a dispatched worker working under the directions and orders of the business operator has conducted a whistleblowing provided for in the items of paragraph (1) of the preceding Article.:

to cancel the worker dispatch contract (meaning the worker dispatch contract prescribed in Article 26, paragraph (1) of the Worker Dispatching Act; the same applies in the following paragraph) relating to the whistleblower;

in addition to what is stated in the preceding item, requesting that the business operator carrying out the worker dispatch related to the whistleblower replace the dispatched worker, or otherwise treating the whistleblower in a disadvantageous manner.

The cancellation of a worker dispatch contract by a business operator provided for in Article 2, paragraph (1), item (ii) in violation of the provisions of the preceding paragraph (limited to the part relating to item (i)) is void.

Prohibition of(Prohibiting Disadvantageous Treatment of Specified Entrusted Business Operators)

In addition to what is provided for in Article 3, aIf the business operator provided forspecified in Article 2, paragraph (1), item (i) must not treat a whistleblower who is or was employed by the business operator in a disadvantageous manner, such as by demotion, reduction of salary, or non-payment of retirement allowance, or otherwise, on the grounds that the whistleblower has conducted(iii) entrusts or has previously entrusted the business to a specified entrusted business operator, the business operator must not cancel the contract relating to the entrustment of business, reduce the volume of transactions, suspend transactions, reduce the remuneration, or otherwise treat the specified entrusted business operator disadvantageously on the grounds of the whistleblowing provided for in the itemseach item of Article 3, paragraph (1) by a whistleblower who is a specified person engaged in entrusted business for the specified entrusted business operator.

In addition to what is provided for in the preceding Article, a business operator provided for in Article 2, paragraph (1), item (ii) must not, on the grounds that a whistleblower who is a dispatched worker working under the directions and orders of the business operator has conducted whistleblowing provided for in the items of Article 3, request that the business operator carrying out the worker dispatch related to the whistleblower replace the dispatched worker, or otherwise treat the whistleblower in a disadvantageous manner.

A business operator provided for in Article 2, paragraph (1), item (iv) (limited to a business operator stated in (a) of the item; the same applies in the following Article and Article 8, paragraph (4)) must not reduce the remuneration or otherwise treat the whistleblower disadvantageously (excluding dismissal) on the grounds that the whistleblower, who performs or performed duties for the business operator, has conducted whistleblowing provided for in the items of the following Article.

Claim for Compensation for Damages in the Case of Dismissal as an Officer(Prohibiting Disadvantageous Treatment of Officers)

A business operator provided for in Article 2, paragraph (1), item (v) (limited to a business operator stated in (a) of the item; the same applies in the following paragraph and Article 8, paragraph (4)) must not reduce the remuneration or otherwise treat the whistleblower disadvantageously (excluding dismissal) on the grounds that the whistleblower, who is or was an officer of the business operator, has conducted a whistleblowing provided for in the following items when stated respectively in those items:

if the whistleblower considers that a reportable fact has occurred, or is about to occur:whistleblowing to the recipient of services or other designated person;

if one of the following applies: whistleblowing to an administrative body or other designated person that has the authority to impose a disposition or make a recommendation or other act regarding the reportable fact:

if the whistleblower has reasonable grounds to believe that a reportable fact has occurred or is about to occur despite efforts being made to conduct investigative and corrective measures (meaning measures necessary for investigation and correction of the reportable fact with the same level of care as that of a prudent manager; the same applies in (a) of the following item);

if the whistleblower has reasonable grounds to believe that a reportable fact has occurred or is about to occur, and also that harm to the life or physical wellbeing of an individual, or damage to the property of an individual (excluding an individual conducting business) has occurred or there is an imminent danger of its occurrence.

if one of the following cases applies: whistleblowing to a person to whom reporting the reportable fact is considered necessary to prevent its occurrence or the spread of damage it causes:

if a whistleblower has reasonable grounds to believe that a reportable fact has occurred or is about to occur despite efforts being made to conduct investigative and corrective measures, and one of the following applies:

the whistleblower has reasonable grounds to believe that if they conduct whistleblowing provided for in the preceding two items, they will be subject to dismissal, reduction of remuneration, or other disadvantageous treatment;

the whistleblower has reasonable grounds to believe that if they conduct whistleblowing provided for in item (i), the evidence for the reportable fact might be concealed, counterfeited, or altered;

it is requested that the whistleblower does not conduct whistleblowing provided for in the preceding two items by the recipient of services without just cause.

if the whistleblower has reasonable grounds to believe that a reportable fact has occurred or is about to occur, and also that harm to the life or physical wellbeing of an individual, or damage to the property of an individual (excluding an individual conducting business) has occurred or there is an imminent danger of its occurrence.

If a whistleblower who is an officer is dismissed by the business operator provided for in Article 2, paragraph (1), item (iv)(v) on the grounds of having conductedconducting whistleblowing provided for in the respective following items inof the cases stated in those itemspreceding paragraph, the whistleblower may claim compensation for damages arising from the dismissal from the business operator.

if the whistleblower considers that a reportable fact has occurred, or is about to occur:whistleblowing to the recipient of services or other designated person;

if one of the following applies: whistleblowing to an administrative body or other designated person that has the authority to impose a disposition or make a recommendation or other act regarding the reportable fact:

if the whistleblower has reasonable grounds to believe that a reportable fact has occurred or is about to occur despite efforts being made to conduct investigative and corrective measures (meaning measures necessary for investigation and correction of the reportable fact with the same level of care as that of a prudent manager; the same applies in (a) of the following item);

if the whistleblower has reasonable grounds to believe that a reportable fact has occurred or is about to occur, and also that harm to the life or physical wellbeing of an individual, or damage to the property of an individual (excluding an individual conducting business) has occurred or there is an imminent danger of its occurrence.

if one of the following cases applies: whistleblowing to a person to whom reporting the reportable fact is considered necessary to prevent its occurrence or the spread of damage it causes:

if a whistleblower has reasonable grounds to believe that a reportable fact has occurred or is about to occur despite efforts being made to conduct investigative and corrective measures, and one of the following applies:

the whistleblower has reasonable grounds to believe that if they conduct whistleblowing provided for in the preceding two items, they will be subject to dismissal, reduction of remuneration, or other disadvantageous treatment;

the whistleblower has reasonable grounds to believe that if they conduct whistleblowing provided for in item (i), the evidence for the reportable fact might be concealed, counterfeited, or altered;

it is requested that the whistleblower does not conduct whistleblowing provided for in the preceding two items by the recipient of services without just cause.

if the whistleblower has reasonable grounds to believe that a reportable fact has occurred or is about to occur, and also that harm to the life or physical wellbeing of an individual, or damage to the property of an individual (excluding an individual conducting business) has occurred or there is an imminent danger of its occurrence.

The business operator provided for in each item of Article 2, paragraph (1) may not claim compensation from the whistleblower who has conducted whistleblowing on the grounds that the business operator has suffered damage due to the whistleblowing provided for in each item of Article 3 and each item, paragraph (1) and each item of paragraph (1) of the preceding Article.

The provisions of Article 3 do not preclude the application of the provisions of ArticleArticles 14 through 16 of the Labor Contracts Act (Act No. 128 of 2007).

The provisions of Article 5, paragraph (1) do not preclude the application of the provisions of Articles 14 and 15 of the Labor Contracts Article 5 and Article 6, paragraph (3) of the Act on Ensuring Proper Transactions Involving Specified Entrusted Business Operators (including as applied mutatis mutandis pursuant to Article 17, paragraph (3) of the Act).

The provisions of Article 6 , paragraph (2) do not preclude the application of the provisions of other laws and regulations to the effect that a person who has been dismissed as an officer by a business operator provided for in Article 2, paragraph (1), item (iv)(v) on the grounds of having made a report concerning a reportable fact may claim compensation for damages arising from the dismissal against the business operator.

The prohibition of dismissal or other disadvantageous treatment, on the grounds of having conducted whistleblowing provided for in the items of Article 3, ofprovisions of Article 3, paragraphs (2) and (3) do not apply to national public employees in the regular service, court employees to whom the Act on Temporary Measures concerning Court OfficialsConcerning Court Employees (Act No. 299 of 1951) applies, Diet employees to whom the Diet OfficersEmployees Act (Act No. 85 of 1947) applies, corps personnel provided for in Article 2, paragraph (5) of the Self-Defense Forces Act (Act No. 165 of 1954), and local public employees in the regular service (referred to as "regular service national public employees, etc." in this Article) is governed, notwithstanding the provisions of Articles 3 through 5, by the provisions of the National Public Service Act (Act No. 120 of 1947; including as applied mutatis mutandis under the Act on Temporary Measures concerning Court Officials), the Diet Officers Act, the Self-Defense Forces Act, and the Local Public Service Act (Act No. 261 of 1950). In this case, a business operator provided for. With regard to the application of the provisions of Article 3, paragraph (1) and Article 21, paragraph (1), the term "dismissal" in Article 3, paragraph (1) is deemed to be replaced with "disciplinary dismissal, dismissal on the grounds of unsuitability", and the term "specific disadvantageous treatment such as dismissal" in Article 221, paragraph (1), item (i) must apply the provisions of those Acts so that no dismissal or other disadvantageous treatment is imposed on regular service national public employees, etc. on the grounds of having conducted whistleblowing provided for in the items of Article 3 is deemed to be replaced with "dismissal on the grounds of unsuitability or disciplinary action".

Any person who conducts whistleblowing as provided for in the items of Article 3 , paragraph (1) and the items of Article 6, paragraph (1) must make efforts not to damage the legitimate interests of others and the public interest.

A business operator must designate a person to be engaged in the operations of receiving whistleblowing provided for in Article 3, paragraph (1), item (i) and Article 6, paragraph (1), item (i), investigating the reportable fact relating to the whistleblowing, and taking necessary measures to correct it (referred to as the "operations to respond to whistleblowing" in the following Article 12) (referred to as a "person engaged in the operations to respond to whistleblowing" in the following Article 12).

In addition to what is provided for in the preceding paragraph, a business operator must establish necessary systems to respond to and to appropriately handle the whistleblowing provided for in Article 3, paragraph (1), item (i) and Article 6, item (i)paragraph (1), item (i), make the system known to workers, etc., and take other necessary measures, in order to protect whistleblowers and to ensure compliance with the provisions of laws and regulations relating to the protection of the lives, physical wellbeing, property, and other interests of citizens by making use of the content of whistleblowing.

The business operator stated in each item of Article 2, paragraph (1) must not obstruct by requesting without just cause that the person stated in the relevant item agree not to conduct whistleblowing, and by informing the person of disadvantageous treatment if whistleblowing is conducted, or by any other act.

An agreement or any other juridical act made in violation of the provisions of the preceding paragraph is void.

A business operator stated in each item of Article 2, paragraph (1) must not demand without justifiable grounds the identity of a whistleblower or conduct any other act for the purpose of identifying a whistleblower.

If whistleblowing provided for in Article 3, paragraph (1), item (ii) and Article 6, paragraph (1), item (ii) is conducted by a whistleblower, an administrative body with the authority to impose a disposition or make a recommendation, etc. or other act regarding the reportable fact must conduct necessary investigations, and if it recognizes that the reportable fact subject to the whistleblowing exists, it must take measures based on laws and regulations or any other appropriate measures.

In order to ensure appropriate implementation of the measures provided for in the preceding paragraph, an administrative body (excluding the officials provided for in Article 2, paragraph (4), item (i)) that has the authority to impose a disposition or make a recommendation, etc. or other act with regard to a reportable fact must respond to the whistleblowing provided for in Article 3, paragraph (1), item (ii) and Article 6, paragraph (1), item (ii), establish a system necessary for appropriately responding to it, and take other necessary measures.

Collecting Reports and Providing Advice, Guidance and Recommendations(Advice and Guidance)

The Prime Minister may request a report from, or give advice, guidance or recommendations to, a business operatorgive advice or guidance to business providers if the Prime Minister finds it necessary for the enforcement of the provisions of Article 11, paragraphs (1) and (2) (including if these provisions are applied by replacing the terms pursuant to the provisions of paragraph (3) of the Article).

If the Prime Minister finds that a business operator is in violation of the provisions of Article 11, paragraph (1) (except as applied following a deemed replacement of terms pursuant to the provisions of paragraph (3) of that Article), the Minister may issue a recommendation to the business operator to take the necessary measures to correct the violation.

When a person who has received a recommendation under the provisions of the preceding paragraph does not take the measures for which the recommendation was made without just cause, the Prime Minister may order the person who has received the recommendation to take the measures for which the recommendation was made.

If the Prime Minister issues an order pursuant to the provisions of the preceding paragraph, the Minister may issue a public announcement to that effect.

The Prime Minister may issue a recommendation to a business operator if the Minister finds it necessary to do so in connection with the enforcement of the provisions of Article 11, paragraph (1) (limited when as applied following a deemed replacement of terms pursuant to the provisions of paragraph (3) of the Article) and paragraph (2) (including as applied following a deemed replacement of terms pursuant to the provisions of paragraph (3) of the Article).

If the Prime Minister has issued a recommendation under the provisions of the preceding paragraph to a business operator that is in violation of the provisions of Article 11, paragraph (2) (excluding as applied following a deemed replacement of terms pursuant to the provisions of paragraph (3) of the Article), and the business operator that has received the recommendation fails to take the recommended measures without just cause, the Minister may make this fact public.

Public Announcements(Reports and Inspections)

IfTo the Prime Minister has given a recommendation under the preceding Article to a business operator that is in violation of the provisions of Article 11, paragraphs (1) and (2), and the person who received the recommendation has not complied with it, the Prime Minister may make a public announcement to that effectextent necessary for the enforcement of the provisions of Article 11, paragraph (1) (excluding when applied by replacing the terms pursuant to the provisions of paragraph (3) of the Article), the Prime Minister may have a business operator make a report, or may have their employees enter the offices or other workplaces of the business operator and inspect books, documents, and any other articles.

To the extent necessary for the enforcement of the provisions of Article 11, paragraph (1) (limited when it is applied by replacing the terms pursuant to the provisions of paragraph (3) of the Article) and paragraph (2) (including when it is applied by replacing the terms pursuant to the provisions of paragraph (3) of the Article), the Prime Minister may request that the business operator make a report.

When government employees enter the offices or other workplaces of the business operator pursuant to the provisions of paragraph (1), the employees must carry an identification card and present it to the relevant persons.

The authority to conduct an onsite inspection under the provisions of paragraph (1) must not be construed as being granted for the purpose of a criminal investigation.

The provisions of Articles 15 andthrough 16 do not apply to the national government and local governments.

Any person who has divulged any information provided for in Article 12 in violation of the Article is to be subject toIf a person has engaged in specified disadvantageous treatment such as dismissal, in violation of the provisions of Article 3, paragraph (1), the person who has committed the violation is subject to imprisonment for not more than six months or a fine of not more than 300,000 yen.

If a person falls under one of the following items, the person who has committed the violation is subject to a fine of not more than 300,000 yen:

when a person has violated an order under the provisions of Article 15-2, paragraph (2);

when a person has failed to make a report under the provisions of Article 16, paragraph (1) or has made a false report, or has refused, obstructed, or evaded an inspection under the provisions of the paragraph.

AAny person who has failed to make a report under Article 15 or has made a false report is punished by a civil divulged any information provided for in Article 12 in violation of the Article is to be subject to a fine of not more than 200,000300,000 yen.

If the representative of a corporation or the agent, employee, or other worker of a corporation or individual violates the provisions stated in one of the following items in connection with the business of the corporation or individual, in addition to the offender being subject to punishment, the corporation is subject to the fine prescribed in the relevant item and the individual is subject to the fine referred to in the relevant paragraph:

Article 21, paragraph (1):a fine of not more than 30 million yen;

Article 21, paragraph (2):the fine referred to in that paragraph.

The provisions of the preceding paragraph (limited to the part relating to item (i)) do not apply to the national government and local governments.

A person who has failed to make a report under Article 16, paragraph (2) or has made a false report is punished by a civil fine of not more than 200,000 yen.