Prime Minister Takichi Sanae is set to announce a review of Japan's discretionary labor system during a special session of the National Diet, aligning with his administration's ongoing labor reforms. This announcement, expected during the policy address scheduled for the 20th, indicates a shift from just considering the relaxation of labor time regulations to actionable steps for expanding discretionary labor practices. The discretionary labor system allows certain professionals to be compensated based on estimated hours worked rather than actual hours, which has been a topic of concern due to its potential to encourage longer working hours.

In the lead-up to this announcement, the Prime Minister has engaged with various stakeholders, gathering feedback on labor reforms, particularly how workers' voices should shape policy changes. During last year, he expressed the need to consider relaxing labor hour regulations following requests from the business sector, which has been facing staffing shortages and pushes for broader application of the discretionary labor system. Although he did not directly reference the specific system in his earlier discussions, he emphasized the need to deepen the review process of labor reforms.

The proposal for the review comes amidst ongoing debates about the impact of labor reforms on work-life balance and worker welfare. There is a rising concern that the expansion of discretionary labor could exacerbate issues of overwork, especially given the existing challenges many employees face in balancing work demands and personal lives. Moving forward, the government's approach will likely need to address these pressures while also considering economic growth strategies that rely on more flexible labor systems.