[Special Feature: The Japanese Way of "Taking Time Off"] Vacation Issues for Workers and Improvement Measures

Are you aware that since April 2019, business owners have been legally obligated to ensure that workers take at least five days of annual paid leave (for those entitled to 10 days or more)? If even one person takes fewer than five days, it is a violation of the law. Among recent "Work-Style Reforms," this mandatory five-day annual leave is a landmark regulation.

According to a survey by the Japan Institute for Labour Policy and Training, 32.5% of full-time employees take "three days or less" of leave (see the attached table).

The following can be observed from this table: 1) Overall, it appears that 30–40% of workers take "less than five days" (details are unclear as four and five days are not separated). 2) Men have a higher ratio of taking zero days than women. 3) Small companies have fewer days taken, while large companies have more. 4) Occupations such as sales have fewer days taken, while professional roles have relatively more. 5) The longer the weekly working hours, the fewer the days of leave taken.

These represent the general profile regarding current annual leave. While it may seem that women take more leave than men, this cannot necessarily be viewed positively when considering the burden of childcare and other factors. Furthermore, from the perspective of replacement staff and personnel systems, large companies naturally have an advantage. Looking at job content, one can imagine that those in sales, who often work according to the customer's schedule, are unable to take leave compared to professionals who can work with a certain degree of discretion. And, naturally, long working hours have a negative impact on taking vacations.

What worries me is that 30–40% of all workers appear to take "less than five days." Even so, those taking three to four days are still in a better position; if they can add just one or two more days, it will no longer be illegal. However, in cases where almost no annual leave is taken—such as "zero" or "one" day—how can they possibly increase that by four or five days?

I conducted a similar survey ten years prior to the one in the table, and there has been almost no change. Interviews conducted in 2018 also suggested that this remains a challenge for a significant number of companies (see my article, "Regulatory Reform of Working Hours and Corporate Response," Japanese Journal of Labour Studies, No. 702). In other words, the annual leave issue has not improved for at least the past 20 years (and likely much longer than that).

I hope that the new legal regulations will gradually take effect. However, it will likely take several years for the practice of most workers taking five or more days to become established. (In 2019, the 10-day Golden Week consisted of legal holidays and weekends, and 2020 features the Olympics; therefore, the full impact of the revised law is expected from 2021 onwards.)

In European countries, a period is not considered a "vacation" by law or social convention unless it lasts for at least two consecutive weeks. In Japan, while it depends on years of service, many full-time employees have around 20 days of annual leave per year. However, it is common to use only about 10 days at most. Furthermore, instead of taking 10 consecutive days, they take them in fragments, such as two days for summer break or three days for the New Year holidays.

The "Bon and Year-end holidays" have long been established. Golden Week is also quite well-established. In other words, many workers take a reasonable amount of time off three times a year: around April–May, August, and December–January.

However, when taking time off during these periods, there are often holidays or special leaves (special paid leave) stipulated by company work rules. Having holidays or leave separate from annual leave means that workers can take a decent amount of time off without using their legal annual leave. But because they are separate, and because workers only use two or three days of annual leave in addition to the special paid summer leave, the balance of annual leave ultimately does not decrease.

Additionally, a common reason for leaving annual leave unused is the response: "I'm saving it for illness or sudden errands." In surveys I have been involved in, over 60% of respondents cited this, making it the number one reason among various others. While this is partly due to the fact that annual leave can be taken in half-day or one-day units, there is a more fundamental issue.

This is because, in cases of inability to work due to non-occupational injury or illness (not covered by workers' compensation), many companies treat it as an "absence," and wages are reduced accordingly. In some cases, absences also affect bonus evaluations. Therefore, many workers retroactively cover absences due to injury or illness with annual leave—thinking, "It's just extra leave anyway"—to ensure it isn't recorded as an absence. Once they get used to this, the idea that "annual leave is something to be saved" becomes the norm.

The lack of social infrastructure for consecutive vacations is likely another factor hindering the use of annual leave. In Europe, not all employees take leave at the same time. For example, if someone takes leave around the peak summer months of June to September—such as in May or October—they might be granted about an extra week of special paid leave. This ensures that business continuity is not negatively affected. In France, there is a system where school summer holidays are staggered by region, and the companies where parents work adjust accordingly. This also has the effect of spreading out the peak period.

Some people go to inexpensive campsites in summer retreats with their families, while others have a settled habit of lending their homes to families in different regions (e.g., resort areas vs. urban areas) to spend long holidays without incurring accommodation costs.

Considering these social habits and the development of infrastructure for vacations, Japan faces many challenges. For instance, there are few inexpensive accommodations. The reason accommodations are expensive during peak periods is not only because of the rush of guests, but also because they try to secure most of their annual revenue during those times due to the lack of guests in other seasons. If there were guests throughout the year, it wouldn't necessarily be necessary to set high prices during peak times. Furthermore, this could also provide a solution for employment measures in the lodging industry, which has a high proportion of non-regular employees (who increase only during busy seasons).

European companies listen to the preferences of all employees regarding their annual leave at the beginning of the fiscal year, make adjustments, and determine the timing and number of days for everyone's vacation for the year. They then take leave almost exactly according to that schedule. I call this a "Vacation Calendar." Japanese companies sometimes announce collective closing days for the sake of business partners and customers. However, almost no companies plan the annual leave for all employees. It is easier to take time off if you plan your annual leave in advance rather than planning it suddenly or not at all. I recommend this "Vacation Calendar" whenever I have the opportunity.

Of course, it may not be possible to reach European levels immediately. For the time being, why not create a vacation calendar for a portion of annual leave on a semi-annual or quarterly basis for each workplace? In fact, a major department store that operates on public holidays introduced this vacation calendar as an important measure for both securing human resources and work-life balance, and it was successful. My recent research also shows that some companies are introducing similar vacation calendars. Rather than doing exactly what European companies do, work-life balance will improve if people can take about a week of vacation several times a year. And improving work-life balance is becoming increasingly important for securing talent.

Regarding the habit of saving annual leave for injury or illness, some companies allow special paid leave for the "waiting period" before injury and sickness allowance under the Health Insurance Act begins (from the 4th day of absence), thereby reducing the need to use annual leave. Some of these companies only require the presentation of a medical receipt rather than a paid medical certificate. If there is special leave for injury or illness, it will be easier to take consecutive vacations.

Furthermore, progressive companies reflect the status of subordinates' annual leave usage in the performance evaluations of managers. Supervisors who ensure their subordinates take time off receive higher evaluations.

Improving the workplace environment to promote annual leave is also crucial. If there is an imbalance in workload, differences in busyness will arise, and those who are busy will be unable to take leave. One solution to this is securing human resources, but more importantly, it is human resource development. There is a term "multi-skilled worker" (personnel capable of performing multiple tasks alone in factories, etc.), and even in white-collar work, development should proceed so that employees can cover each other's tasks.

There are also situations where leave cannot be taken due to unreasonable orders from client companies. In a situation where competition is based solely on cost and speed, it may be difficult to break free. However, one small company in Fukuoka Prefecture dared to turn down a customer who made unreasonable demands for the sake of its own workers. On the other hand, by increasing the number of small-scale customers, they prevented a drop in profits. Students from famous universities even began applying for jobs at this company.

Some people may not take leave because they feel they "have nothing to do even if they take time off." However, according to my research, people with a strong sense of "having nothing to do" did not actually have a poor record of taking annual leave. In fact, they take a fair amount of time off. However, they seemingly do not feel the need for a vacation enough to take all of their annual leave.

There are many things that can only be gained by taking a break. This brings new perspectives, knowledge, experiences, and inspiration to both work and life. However, it is also okay to do nothing. Actively doing something is not the only way to spend a holiday. Just taking a walk in the neighborhood can be a change of pace. Just lying down and reading a book increases your knowledge. Even seemingly "useless knowledge" can be helpful for something. My respected supervising professor once said, "A day off is rest for the body; a vacation is rest for the soul." I want to think deeply about the meaning of this.