The purpose of this Act is to contribute to achieving stability in individual labor relationships while protecting workers by ensuring that reasonable working conditions are decided on and reasonable changes to working conditions are made smoothly, by providing for the principle of agreement, under which a labor contract is to be established or changed by agreement through voluntary negotiation between a worker and an employer, and other basic matters concerning labor contracts.

The term "Worker" as used in this Act means a person who works by being employed by an employer and to whom wages are paid.

The term "Employer" as used in this Act means a person who pays wages to the Workers the Employer employs.

A labor contract is to be concluded or changed between a Worker and an Employer by agreement on an equal basis.

A labor contract is to be concluded or changed between a Worker and an Employer while giving consideration to the balance of treatment according to the actual conditions of work.

A labor contract is to be concluded or changed between a Worker and an Employer while giving consideration to work-life balance.

A Worker and an Employer must comply with the labor contract, and must exercise their rights and perform their obligations in good faith.

When exercising their rights under a labor contract, a Worker and an Employer must not abuse such right.

An Employer is to ensure that a Worker gains an in-depth understanding of the working conditions and the contents of the labor contract presented to the Worker.

A Worker and an Employer are to confirm the contents of the labor contract (including matters concerning a fixed-term labor contract), whenever possible in writing.

In association with a labor contract, an Employer is to give the necessary consideration to enable a Worker to work while ensuring their physical safety.