V. JAPAN

B. Law for Employment Promotion, etc.,
of the Disabled*

* The translation of this Law from Japanese into English was contributed by the Japan Association for Employment of the Disabled.

Contents

Chapter I. General Provisions (Articles12-6)

Chapter II. Promotion of Vocational Rehabilitation

Section I. General Provisions (Article 3)

Section II. Employment Placement, etc. (Articles 3-28-3)

Section III. Vocational Centers for the Disabled

Subsection I. Establishment, etc. of Vocational Centers for the Disabled (Articles 99-9)

Subsection II. Carrying out Services of Establishment and Administration of Vocational Centers for the Disabled by Japan Association for Employment of the Disabled (Articles 9-109-11)

Section IV. Carrying out Administration Services for Vocational Training Centers for the Disabled by Japan Association for Employment of the Disabled (Articles 9-129-13)

Chapter III. Employment Promotion, etc. Based on Obligation for Employment of the Physically Disabled, etc.

Section I. Obligation, etc. for Employment of the Physically Disabled (Articles 1017)

Section II. Payment of Adjustment Allowance for Employing the Physically Disabled, etc. and Collection of Levy for Employing the Physically Disabled

Subsection I. Payment of Adjustment Allowance for Employing the Physically Disabled, etc. (Articles 1825)

Subsection II. Collection of Levy for Employing the Physically Disabled (Articles 2639)

Subsection III. Implementation of Services relating to Levy and Grant System for Employing the Physically Disabled by Japan Association for Employment of the Disabled (Articles 39-239-8)

Section III. Special Provisions for Short-Time, etc., Who are Severely Physically Disabled (Articles 39-939-12)

Section IV. Special Provisions for the Mentally Retarded, etc. (Articles 39-1339-19)

Chapter IV. Japan Association for Employment of the Disabled (Articles 4071)

Chapter V. Disabled Persons' Employment Deliberative Council (Articles 7277)

Chapter VI. Miscellaneous Provisions (Articles 7884)

Chapter VII. Penal Provisions (Articles 8588)

Supplementary Provisions

Chapter I.

General Provisions

(Purpose)

Article 1. The purpose of this Law is to take comprehensive measures for promotion of employment, etc., based on the obligation for employment of the physically disabled, etc., measures for vocational rehabilitation and other measures for promoting self-support in vocational life through the placement of disabled in occupations suited to their abilities, and thereby to contribute to the occupational stability of the disabled.

(Definition)

Article 2. In this Law, the meanings of the following terms shall be as set forth in the respective item:

1. "the disabled" means those who, because of physical and/or mental impairment, are subject to considerable restriction in their vocational life, or who have great difficulty in leading a vocational life, over a long period of time;
2. "the physically disabled" means, of the disabled, those who have a physical disability provided in the Annexed list (hereinafter referred to as a "physical disability");
3. "the severely physically disabled" means, of the physically disabled, those who have a severe physical disability and who are provided for by Ministry of Labour Ordinance;
4. "the mentally retarded" means, of the disabled, those who have mental retardation and who are provided for by Ministry of Labour Ordinance;
5. "the severely mentally retarded" means, of the mentally retarded, those who have a severe mental retardation and who are provided for by Ministry of Labour Ordinance; and
6. "vocational rehabilitation" means to strive for self-support by the disabled in vocational life through taking measures for vocational guidance, vocational training, employment placement and other measures for the disabled provided in this Law.

(Fundamental Principles)

Article 2-2. Workers who are disabled shall be given the opportunity to utilize their abilities in vocational life as workers who are members of the economy and society.

Article 2-3. Workers who are disabled shall strive to achieve self-support as capable workers by achieving an awareness of themselves as persons engaged in work and by personally striving to develop and improve their own abilities.

(Duties of Employers)

Article 2-4. With respect to employing the disabled, all employers are persons with a duty to cooperate in the efforts of disabled workers to achieve self-support as capable working persons, based on the principle of social solidarity, and shall endeavour to properly evaluate the abilities of the disabled, to provide suitable places of employment and must also strive to stabilize their employment through proper management of employment.

(Duties of State and Local Public Bodies)

Article 2-5. Together with enlightening the people in general, including employers, on the employment of the disabled, the State and local public bodies shall endeavour to promote comprehensively and effectively the measures necessary for promoting the employment of the disabled and their occupational stability, such as measures to aid employers, the disabled and others concerned, and measures for vocational rehabilitation with due consideration of the characteristics of the disabled.

(Fundamental Policies for Employment Measures for the Disabled)

Article 2-6. The Minister of Labour shall decide the policies that are to be the fundamentals of measures concerning the promotion of the employment of the disabled and their occupational stability (hereinafter referred to as the "fundamental policies for employment measures for the disabled").

1. Matters to be provided for in the fundamental policies for employment measures for the disabled are as follows:

   (1) Matters relating to trends in the employment of the disabled;

   (2) Matters that form the fundamentals of measures to be enacted to achieve the comprehensive and effective implementation of vocational rehabilitation measures;

   (3) Matters that are to serve as guidelines for promoting the suitable implementation of employment management to be carried out by employers as prescribed in Article 2-4 in accordance with the type and severity of the disabilities of disabled workers;

   (4) Matters, other than those in the three preceding items, that form the fundamentals of measures to be enacted to promote the employment of the disabled and achieve their occupational stability.

2. The Minister of Labour, in deciding the fundamental policies for employment measures for the disabled, shall listen to the opinions of the Disabled Persons' Employment Deliberative Council and seek the opinions of prefectural governors.
3. Once the fundamental policies for employment measures for the disabled have been decided, the Minister of Labour must, without delay, make public an outline of these policies.
4. The provisions of the two preceding paragraphs shall apply to changes in the fundamental policies for employment measures for the disabled.

CHAPTER II.

Promotion of Vocational Rehabilitation

Section I.
General Provisions

(Principles of Vocational Rehabilitation)

Article 3. Measures for vocational rehabilitation shall be taken comprehensively and effectively, in accordance with such conditions as the type and degree of disability and the desires, aptitude and vocational experience of each disabled person.

2. As necessary, measures for vocational rehabilitation shall be undertaken with proper coordination with measures for medical rehabilitation and social rehabilitation.

Section II.
Employment Placement, etc.

(Expansion of Openings, etc.)

Article 3-2. The Public Employment Security Offices shall, for the promotion of employment of the disabled, gather information on the disabled seeking jobs, provide that information to employers and encourage employers to employ the disabled, and in addition seek to expand openings suited to the abilities of the disabled.

(Conditions of Job Offer, etc.)

Article 3-3. The Public Employment Security Offices may refuse to accept offers of jobs for which, despite the absence of a proper reason, it is made a condition that there not be a certain physical or mental disability.

2. The Public Employment Security Offices shall, when it is necessary for the purpose of placement of the disabled in employment which is suited to their abilities, give those making job offers guidance on physical or mental requirements and other conditions of job offers.
3. The Public Employment Security Offices shall, in conducting employment placement for the disabled, upon request of those making job offers, provide them with information relating to the vocational ability of the disabled concerned in their possession.

(Vocational Guidance, etc.)

Article 3-4. The Public Employment Security Offices shall, in order to enable the disabled to obtain employment suited to their abilities, take necessary measures such as carrying out aptitude tests, providing employment information, giving the disabled vocational guidance suited to them, and the like.

(Coordination with Vocational Centers for the Disabled)

Article 4. With respect to the disabled for whom it is regarded as especially necessary to conduct the aptitude tests, vocational guidance and the like referred to in the preceding paragraph on the basis of expert knowledge and techniques, the Public Employment Security Offices shall conduct such aptitude tests, vocational guidance and the like in close coordination with the vocational center for the disabled provided for in Article 9, or shall intercede in having the disabled receive such aptitude tests, vocational guidance and the like at the vocational center for the disabled concerned.

(Adaptation Training)

Article 5. The prefectures shall, when they regard it as necessary, carry out adaptation training for the disabled (limited to the physically disabled, the mentally retarded and other disabled prescribed by Cabinet Order; in the next article and Article 7, paragraph 2, the same applies) who are job applicants, for the purpose of enabling the disabled concerned to adapt easily to the working environment suited to their abilities.

2. he adaptation training shall be carried out by entrusting it to employers who carry out the work provided in the preceding paragraph under circumstances which are regarded as standard.

(Interceding in Adaptation Training)

Article 6. The Public Employment Security Offices shall, when they regard it as necessary for the employment promotion of the disabled, intercede in having them undergo adaptation training.

(Measures for Those Who Undergo Adaption Training)

Article 7. The adaptation training shall be carried out free of charge.

2. The prefectures may provide allowances to the disabled who undergo adaptation training under the provisions of the Employment Measures Law (Law No. 132 of 1966).

(Delegation to Ministry of Labour Ordinance)

Article 8. The adaptation training period and other standards relating thereto not included in the preceding three Articles shall be prescribed by Ministry of Labour Ordinance.

(Advice and Guidance after Employment)

Article 8-2. The Public Employment Security Offices may, when they regard it as necessary for achieving the occupational stability of the disabled, give the disabled who got jobs through their placement or other disabled who are employed by employers advice or guidance necessary for enabling them to adapt to their working environment.

(Advice and Guidance to Employers)

Article 8-3. The Public Employment Security Offices may, when they regard it as necessary for promoting the employment of the disabled and achieving occupational stability for the disabled, give those who are employing or will employ the disabled advice or guidance as to hiring, placement, supplemental tools, working equipment or environment, and other technical matters relating to employing the disabled (referred to as the "matters relating to employment management of the disabled" in sub-section I of the next section).

Section III.
Vocational Centers for the Disabled

Subsection I.
Establishment, etc. of Vocational Centers for the Disabled

(The Task of Establishment, etc. of Vocational Centers for the Disabled)

Article 9. The Government shall, for the purpose of promoting self-support in vocational life by the disabled, carry out the services of establishing and administering the following facilities (hereinafter referred to as the "vocational centers for the disabled"):

(1) National Institute of Vocational Rehabilitation;

(2) Large Region Vocational Centers for the Disabled;

(3) Local Vocational Centers for the Disabled.

(National Institute of Vocational Rehabilitation)

Article 9-2. National Institute of Vocational Rehabilitation shall carry out the following services:

(1) conduct surveys and research on vocational rehabilitation (excluding vocational training; hereinafter in this subsection, with the exception of item (5)-(a) and paragraph 2 of Article 9-8, the same applies);

(2) collect, analyze and provide information on employing the disabled;

(3) educate and train the vocational counsellors for the disabled provided for in Article 9-7;

(4) give advice, guidance and other assistance on technical matters concerning vocational rehabilitation to the Large Region Vocational Centers for the Disabled, Local Vocational Centers for the Disabled and other agencies concerned;

(5) carry out the following services in connection with the services in the preceding items:

1. vocational evaluation of the disabled (which means evaluating the vocational ability, aptitude, etc. of the disabled and determining necessary measures on vocational rehabilitation; hereinafter the same applies), vocational guidance, training in the fundamental customs of labour (referred to as "work preparation training" in Article 9-4, item (1) and courses for acquiring the knowledge and techniques necessary for work (hereinafter referred to as "vocational courses");
2. advice and other assistance to employers on matters relating to employment management of the disabled;

(6) carry out services incidental to the services in the preceding items.

(Large Region Vocational Centers for the Disabled)

Article 9-3. The Large Region Vocational Centers for the Disabled shall, as to the disabled requiring systematic vocational rehabilitation, in close cooperation with vocational training centers for the disabled, the medical care facilities or rehabilitation facilities provided for in Article 19, paragraph 1, item (1) of the Labour Welfare Projects Corporation Law (Law No. 126 of 1957) and other facilities provided for by Ministry of Labour Ordinance, carry out the following services over large regions:

(1) systematic vocational evaluation, vocational guidance and vocational courses for the disabled provided for by Ministry of Labour Ordinance;

(2) advice and other assistance on matters relating to employment management of the disabled to employers who are employing or will employ the disabled for whom the measures in the preceding item were taken;

(3) services incidental to the services provided in the preceding two items.

(Local Vocational Centers for the Disabled)

Article 9-4. The Local Vocational Centers for the Disabled shall carry out the following services:

(1) vocational evaluation, vocational guidance, work preparation training and vocational courses for the disabled;

(2) advice and other assistance to employers on matters relating to the employment management of the disabled;

(3) services incidental to the services provided in the preceding two items.

(Location, etc. of Vocational Centers for the Disabled)

Article 9-5. The location, name and other matters necessary for the administration of the vocational centers for the disabled shall be provided for by Ministry of Labour Ordinance.

(Prohibition of Use of Name)

Article 9-6. The characters for "National Institute of Vocational Rehabilitation" or "Vocational Center for the Disabled" shall not be used in the names of any institution other than a vocational center for the disabled.

(Vocational Counsellors for the Disabled)

Article 9-7. The Minister of Labour shall assign vocational counsellors for the disabled at vocational centers for the disabled.

2. The vocational counsellors for the disabled shall be persons who have passed the examination designated by the Minister of Labour and completed the course designated by the Minister, or who have other qualifications provided for by Ministry of Labour Ordinance.
   
   

(Mutual Contact and Cooperation among Vocational Centers for the Disabled, etc.)

Article 9-8. The vocational centers for the disabled shall endeavour to promote the self-support in vocational life of the disabled through close mutual contact and cooperation.

2. The vocational centers for the disabled shall, coupled with the measures, such as the employment placement, etc., of the Public Employment Security Offices and the vocational training by the public facilities for vocational training provided for in Article 16, paragraph 4 of the Vocational Ability Development Promotion Law (Law No. 64 of 1969) (referred to as the "public facilities for vocational training" in Article 82), endeavour to promote vocational rehabilitation effectively.
   
   

(Carrying out Measures for Vocational Rehabilitation Without Charge)

Article 9-9. The measures for vocational rehabilitation of the vocational centers for the disabled shall be free of charge.

Subsection II.
Carrying out Services of Establishment and Administration for Vocational Centers for the Disabled by Japan Association for Employment of the Disabled

Article 9-10. The Minister of Labour shall, when Japan Association for Employment of the Disabled is established under the provisions of Chapter IV, entrust said Association with carrying out the services provided in Article 9 (hereinafter referred to as the "establishment and administration services for the vocational centers").

2. The Minister of Labour shall, when entrusting Japan Association for Employment of the Disabled to carry out the establishment and administration services for the vocational centers under the provisions of the preceding paragraph, officially announce the date when said Association will commence said services and the names and locations of the vocational centers for the disabled where said Association will carry out said services, in the Official Gazette.
3. The Minister of Labour shall, when seeking to give authorization under Article 65, paragraph 2; when seeking to revoke authorization for establishment under the provisions of Article 70; or when the Minister deems necessary in a case where it would be difficult for Japan Association for Employment of the Disabled to carry out the establishment and administration services for the vocational center, carry out said services in person.
4. The Minister of Labour shall, when the Minister determines to carry out the establishment and administration services for the vocational centers under the provisions of the preceding paragraph, or to stop carrying out said services which are then being carried out under the provisions of that paragraph, officially so announce in advance in the Official Gazette.
5. The taking over of the establishment and administration services for the vocational centers and other necessary matters in the event that the Minister of Labour carries out said services under the provisions of paragraph 3 or stops carrying out said services then being carried out under the provisions of that paragraph shall be provided separately by law.
   
   

Article 9-11. In applying the provisions of the preceding sub-section to the establishment and administration services for the vocational centers carried out by Japan Association for Employment of the Disabled, the expression "the Government" in Article 9 and "the Minister of Labour" in Article 9-7, paragraph 1 shall be read as "Japan Association for Employment of the Disabled".

2. The provisions of Article 9-5 shall not apply to the establishment and administration services for the vocational centers carried out by Japan Association for Employment of the Disabled.
   

Section IV.
Carrying out Administration Services for Vocational Training Centers for the Disabled by Japan Association for Employment of the Disabled

Article 9-12. The Minister of Labour shall, when Japan Association for Employment of the Disabled is established under the provisions of Chapter IV, entrust said Association to carry out the administration services for the vocational training centers for the disabled provided for by Ministry of Labour Ordinance under Article 16, paragraph 6 of the Vocational Ability Development Promotion Law (hereinafter referred to as the "administration services for the vocational training centers").

2. The provisions of Article 9-10, paragraphs 2 to 5 shall apply mutatis mutandis in the event that Japan Association for Employment of the Disabled carries out the administration services for the vocational training centers under the provisions of the preceding paragraph. In this case, the expression "the date when said Association will commence said services and the names and locations of the vocational centers where said Association will carry out said services" in paragraph 2 of that article shall be read as "the date when said Association will commence said services"; and the expression "shall be provided separately by law" in paragraph 5 of that Article shall be read as "shall be provided for by Ministry of Labour Ordinance."
   
   

Article 9-13. Japan Association for Employment of the Disabled shall, in cases where the provisions of Article 12; Article 14, paragraphs 1 and 3; Article 18; and Article 93 of the Vocational Ability Development Promotion Law apply to the administration services for the vocational training centers carried out by said Association, be deemed to be the State.

Chapter III.

Employment Promotion, etc. Based on Obligation for Employment of the Physically Disabled, etc.

Section I.
Obligation for Employment, etc. of the Physically Disabled

(Duties of Employers Relating to Employing the Physically Disabled)

Article 10. With respect to employing the physically disabled, all employers are persons with a public duty to provide appropriate places of work, based on the principle of social solidarity, and shall actively endeavour to hire the physically disabled.

(Obligations of the State and Local Public Bodies Relating to Employment)

Article 11. In the event that the number of personnel who are physically disabled working for the organization concerned is less than the number obtained by multiplying the total number of personnel working for the organization concerned by the rate, not less than the employment quota rate for the physically disabled provided in Article 14, paragraph 2, which is prescribed by Cabinet Order (when there is any fraction less than one person, such fraction shall be omitted), the officials with appointing authority for the State and local public bodies (excluding persons who execute the appointing authority pursuant to delegation; hereinafter, the same applies) shall, with respect to the appointment of personnel (limited to personnel regularly working [except for personnel regularly working whose number of hours worked in a week is less than the normal number of hours worked in a week of personnel who work at the institution in question, and who work less than the number of hours in Article 14, paragraph 1 as prescribed by the Minister of Labour {hereinafter referred to as "short-time personnel"}] for the organization concerned [including organizations involving persons who carry out the appointing authority pursuant to delegation from the official with appointing authority concerned; hereinafter, the same applies], other than personnel provided for in Article 2, paragraph 3, items (1) to (11) of the National Public Service Law [Law No. 120 of 1947], police, personnel who are mariners, and other personnel provided for by Cabinet Order; hereinafter, the same applies), formulate a program relating to the appointment of the physically disabled, in accordance with Cabinet Order, in order to increase the number of personnel who are physically disabled to not less than the number obtained by multiplying by such rate.

2. In calculating the number of personnel who are physically disabled under the preceding paragraph, each person among the personnel who is severely physically disabled shall be deemed equal to the number of physically disabled personnel prescribed by Cabinet Order.
   
   

(Notification, etc. of Circumstances of Appointment)

Article 12. The official with appointing authority for the State or local public body shall, as prescribed by Cabinet Order, make notification of the program provided for in paragraph 1 of the preceding Article and of the circumstances of execution thereof to the Minister of Labour (or, in the case of the officials with appointing authority for municipalities, special wards and other special local public bodies prescribed by Cabinet Order, to the Governor of the Prefecture; in the next paragraph and the next article, the same applies).

2. The Minister of Labour may, when the Minister regards it as especially necessary, recommend the official with appointing authority who formulated the program provided for in paragraph 1 of the preceding Article as to the proper execution thereof.
   
   

(Notification of Circumstances of Appointment and Dismissal)

Article 13. The official with appointing authority shall, once a year, as prescribed by Cabinet Order, make notification of the circumstances of appointment and dismissal of personnel who are physically disabled in the organization concerned to the Minister of Labour.

(Employment Obligation, etc. of Employers in General)

Article 14. Employers (this refers to employers who employ regular workers [hereinafter referred to simply as "workers"; except for regular workers whose scheduled working hours for a one-week period is less than the scheduled working hours for a one-week period of ordinary workers employed at the business location of the employer in question, and less than the number of hours prescribed by the Minister of Labour {hereinafter referred to as "short-time workers"}], and does not include State or local public bodies; hereinafter, the same applies) shall, in the event of fluctuations in employment relations prescribed by Ministry of Labour Ordinance, keep the number of workers who are physically disabled employed by them at not less than the number (when there is any fraction less than one person in such figure, such fraction shall be omitted; referred to as the "legally prescribed employment number of the disabled" in Article 15, paragraph 1) obtained by multiplying the total number of the workers employed by them (as for employers in establishments in types of business containing exclusion rate fixed trades [this means the trades designated by Ministry of Labour Ordinance as trades for which the ratio of workers in the types of jobs regarded as difficult for the physically disabled to engage in is considerably high; hereinafter, the same applies] is carried on, the number [when there is any fraction less than one person in such figure, such fraction shall be omitted] obtained by subtracting from the total number of workers employed the aggregate of the numbers obtained by multiplying the number of workers in each exclusion rate fixed trade at the establishment concerned by the exclusion rate [this means the rate designated by Ministry of Labour Ordinance for each exclusion rate fixed trade, with due regard to the ordinary rate of the workers of the type of job concerned among the workers in the exclusion rate fixed trade; hereinafter, the same applies] for the trade concerned; in paragraph 5 and to Article 78-3, the same applies) by the employment quota rate for the physically disabled.

2. The employment quota rate for the physically disabled under the preceding paragraph shall be fixed on the basis of the ratio of total workers who are physically disabled (including the physically disabled who are in circumstances where they cannot get any steady job, despite the will and ability to work; in Article 27, paragraph 3, the same applies) out of the number obtained by subtracting the aggregate of the numbers obtained by multiplying the total number of workers in each exclusion rate fixed trade by the exclusion rate for the trade concerned from the total number of all workers (including persons who are in circumstances where they cannot get any steady job, despite the will and ability to work; in Article 27, paragraph 3, the same applies), and such rate shall be prescribed by the Cabinet Order at least once every five years, with due consideration for changes in the ratio concerned.
3. In calculating the number of workers who are physically disabled under paragraph 1 and the total number of workers under the preceding paragraph, each worker who is severely physically disabled shall be deemed equal to the number of physically disabled workers prescribed by Cabinet Order.
4. Notwithstanding the provisions of paragraph 2, the employment quota rate of physically disabled under paragraph 1 connected with special corporations (among the corporations which are established by means of the special incorporation acts under special legislation or the corporations which are established by local public bodies as organizers under special legislation, the corporations all or most of the capital for which is contributed by the State or local public bodies, or the corporations for which the principal funds for expenses necessary for the administration of business are grants or subsidies from the State or local public bodies, and which are prescribed by Cabinet Order; hereinafter, the same applies) shall be the rate, not less than the rate under the provisions of paragraph 2, prescribed by Cabinet Order.
5. Employers (limited to employers for which the number of workers employed is regularly equal to or greater than the number prescribed by Ministry of Labour Ordinance) shall, once a year, in accordance with Ministry of Labour Ordinance, report the employment situation of workers who are physically disabled to the Minister of Labour.
   
   

(Special Application for Workers Employed by Subsidiaries)

Article 14-2. With respect to application of the provisions of paragraphs 1 and 5 of the preceding Article in connection with employers having over half of the total number of the issued shares of a specified stock company, or an investment lot equal to over half of the total amount of capital of a specified limited liability company, who, based upon an application by the employer concerned and the stock company or the limited liability company concerned (hereinafter referred to as the "subsidiary company"), has obtained recognition by the Minister of Labour to the effect that such employer conforms to the following standards with respect to the subsidiary company concerned (hereinafter referred to as the "parent employer"), the workers whom the subsidiary company concerned employs shall be deemed to be workers employed only by the parent employer and the workplace of the subsidiary company concerned shall be deemed to be the workplace of the parent employer:

(1) that there are close relationships on personnel and business between the business carried on by the subsidiary company concerned and by the employer concerned;

(2) that the number of workers who are physically disabled employed by the subsidiary company and the ratio of this number to the total number of workers employed by the subsidiary company concerned are not less than the number and the ratio fixed by the Minister of Labour, respectively;

(3) that the subsidiary company concerned is capable of executing properly the employment management of the workers who are physically disabled employed thereby;

(4) that, apart from the matters specified in the two preceding items, it is considered that the promotion of employment and the occupational stability of the workers who are severely physically disabled and other physically disabled employed by the subsidiary company concerned will surely be accomplished in the business carried on by such subsidiary company.

2. The Minister of Labour may, after making the recognition under the provision of the preceding paragraph, when the parent employer has ceased to meet the requirements as to shares or capital provided in the preceding paragraph or has discontinued the undertaking, or the Minister of Labour considers that the subsidiary company connected with the recognition concerned has ceased to conform to the standards provided in each item of that paragraph, revoke the recognition concerned.
3. The Minister of Labour shall, when seeking to revoke the recognition under the provisions of the preceding paragraph, provide the parent employer with the opportunity for explanation. In this case, the Minister of Labour shall give in advance a notice in writing as to the date and place for explanation and the reason for revocation of the recognition concerned.

(Plan for Hiring the Physically Disabled by Employers in General)

Article 15. The Minister of Labour may, when the Minister regards it as necessary for promoting the employment of the physically disabled, order employers for whom the number of workers employed who are physically disabled is less than the legally prescribed employment number of the disabled, to formulate a plan concerning the hiring of the physically disabled in accordance with Ministry of Labour Ordinance in order to increase the number of workers who are physically disabled to not less than the legally prescribed employment number of the disabled.

2. In calculating the number of workers who are physically disabled under the preceding paragraph, each worker is severely physically disabled shall be deemed equal to the number of physically disabled workers prescribed by Cabinet Order.
3. With respect to application of the provisions of paragraph 1 to the parent employer, the workers employed by the subsidiary company concerned shall be deemed to be workers employed only by the parent employer concerned.
4. The employers shall, upon formulating the plan provided for in paragraph 1, submit the program concerned to the Minister of Labour in accordance with Ministry of Labour Ordinance. The same shall also apply upon a change in the plan concerned.
5. The Minister of Labour may, when the Minister regards the plan under paragraph 1 as markedly inappropriate, recommend to the employer who formulated the program concerned to change that plan.
6. The Minister of Labour may, when the Minister regards it as especially necessary, make recommendations to the employers who formulated plans under paragraph 1 as to the proper execution of the plans.
   
   

(Making Public Matters Regarding Employers in General)

Article 16. The Minister of Labour may, when employers who formulated plans under paragraph 1 of the preceding article do not follow the recommendations provided for in paragraph 5 or 6 of the same Article without appropriate reason, make public that fact.

(The Specified Physically Disabled)

Article 17. With respect to the appointment of personnel to specified types of jobs (meaning the types of jobs which are regarded as suited to the abilities of the physically disabled who have the ability to work, but for whom employment in ordinary jobs is especially difficult because the degree of the disability is severe, and which are prescribed by Cabinet Order; hereinafter in this article, the same applies), in the event that the number of personnel in the types of jobs concerned who are specified physically disabled (meaning those persons, of the physically disabled, who are persons specified by Cabinet Order for each specified type of job; hereinafter in this article, the same applies) is less than the number obtained by multiplying the total number of personnel in the type of job concerned working for the organization concerned by the employment quota rate for the specified physically disabled prescribed by Cabinet Order for each type of job (when there is any fraction less than one person, such fraction shall be omitted), the officials with appointing authority for the State and local public bodies shall formulate a program relating to the appointment of the specified physically disabled, in accordance with Cabinet Order, in order to increase the number of personnel who are specified physically disabled to not less than the number obtained by multiplying by the employment quota rate for the specified physically disabled.

2. The provisions of Article 12 shall apply mutatis mutandis to the program under the preceding paragraph.
3. Employers shall, with respect to hiring workers for the specified types of jobs, endeavour to keep the number of workers who are specified physically disabled for the specified type of job employed by them at not less than the number (when there is any fraction less than one person in such figure, such fraction shall be omitted) obtained by multiplying the total number of workers in the type of job concerned employed by them by the employment quota rate for the specified physically disabled prescribed by Ministry of Labour Ordinance for each type of job.
4. The Minister of Labour may, when the Minister regards it as especially necessary for promoting the employment of the specified physically disabled, order the employers for whom the number of workers who are specified physically disabled employed in the specified type of job is less than the number calculated according to the provisions of the preceding paragraph and who are regarded not to face marked difficulty in increasing such number (limited to those who employ a number of workers in the type of job concerned that is not less than the number fixed by Ministry of Labour Ordinance for each type of job) to formulate a plan concerning the employment of the specified physically disabled in accordance with Ministry of Labour Ordinance in order to increase the number of workers who are specified physically disabled to not less than the number calculated under the provisions of that paragraph.
5. The provisions of Article 15, paragraph 3 shall apply mutatis mutandis in applying the provisions of the preceding two paragraphs to the parent employer; and the provisions of paragraphs 4 and 5 of the same Article shall apply mutatis mutandis to the plan provided for in the preceding paragraph.

Section II.
Payment of Adjustment Allowance for Employing the Physically Disabled, etc.
and Collection of Levy for Employing the Physically Disabled

Subsection I:
Payment of Adjustment Allowance for Employing the Physically Disabled, etc.

(Business of Payment of Adjustment Allowance for Employing the Physically Disabled, etc.)

Article 18. The Government shall, in order to achieve adjustment of economic burdens accompanying employment of the physically disabled, and to promote and continue the employment thereof, carry out the following services:

(1) to pay the employers (except for special corporations; hereinafter in this section, the same applies) who fall under the provisions of paragraph 1 of the next Article, the adjustment allowance for employing the physically disabled provided in that paragraph;

(2)to supply the employers who hire the physically disabled with grants to be applied to the expenses necessary for establishment of improvement of the facilities or equipment for employing the physically disabled, or for the measures for the proper employment management of the physically disabled (except for the measures to which item 2-3 applies);

(2-2) to supply the employers who employ workers who are physically disabled with grants to be applied to the expenses necessary for the alteration of facilities for continuing employment of the physically disabled;

(2-3) to supply the employers who employ workers who are severely physically disabled and other physically disabled as prescribed by Ministry of Labour Ordinance with grants to be applied to the expenses necessary for measures to facilitate the commuting by these workers who are physically disabled and other measures for proper employment management corresponding to the kind or the degree of disability of these workers who are physically disabled;

(3) to supply the employers of establishments which employ the workers who are severely physically disabled in large numbers with grants to be applied to the expenses necessary for establishment or improvement of the facilities or the equipment for the business of the establishment concerned;

(3-2) to supply the following that carry on the business of education and training for developing and improving the abilities necessary for occupations for the physically disabled (limited to the education and training which conforms to the criteria provided by the Minister of Labour; hereinafter, the same applies) with grants to be applied to the expenses necessary for the business concerned; and to supply the employers who employ the workers who are physically disabled with grants to be applied to the expenses necessary for measures to facilitate the taking of the education and training courses by workers who are physically disabled:

1. employers or their organizations;
2. a specialized school provided for in Article 82-2 of the School Education Law (Law No. 26 of 1947), or an educational foundation provided for in Article 3 of the Private School Law (Law No. 270 of 1949) concerning the establishment of miscellaneous schools provided for in Article 83-1 of the School Education Law, or a corporation provided for in Article 64, paragraph 4 of the Private School Law;
3. a social welfare corporation provided for in Article 22 of the Social Welfare Projects Law (Law No. 45 of 1951);
4. another corporation carrying on the business concerning the promotion of employing the physically disabled;

(4) to supply organizations of employers which carry on the business concerning the promotion of employing the physically disabled with grants to be applied to the expenses necessary for the business of research, surveys or courses relating to technical matters concerning the employment of the physically disabled carried on by the organization concerned, or the business of enlightenment to deepen the understanding of employers and other people in general regarding the employment of the physically disabled;

(5) to collect the levy for employing the physically disabled provided for in Article 26, paragraph 1;

(6) to carry out services incidental to the services provided for in the preceding items.

(Paying Adjustment Allowance for Employing the Physically Disabled)

Article 19. The Minister of Labour shall, every fiscal year (from the 1st of April to the 31st of March in the next year; hereinafter, the same applies), in accordance with Cabinet Order, pay the employers for whom the amount obtained by multiplying the basic amount for adjustment provided for in Article 27, paragraph 2 by the total number of workers who are physically disabled employed by them on the first day of every month in the year concerned (as for employers who commence or discontinue the business during the year concerned, limited to each month from and after the month in which the day of commencement of the business occurred, or on and before the month preceding the month in which the day of discontinuance of the business occurred; hereinafter, the same applies) is greater than the amount calculated according to the provisions of paragraph 1 of the same Article, the sum equal to the amount obtained by multiplying the unit adjustment amount by the number obtained by dividing the amount of the difference (derived as set forth above) by the basic amount for adjustment concerned, as the adjustment allowance for employing physically disabled for the year concerned (hereinafter referred to as the "adjustment allowance").

2. The unit adjustment amount in the preceding article shall be the sum prescribed by Cabinet Order on the basis of the average amount of special expenses provided in paragraph 2 or Article 27 per month which would normally be additionally necessary for each physically disabled person in the event that the employer newly employed more physically disabled than the number obtained by multiplying the number of workers employed by the standard employment quota rate provided in Article 27, paragraph 3.
3. The provisions of Article 15, paragraph 2 shall apply mutatis mutandis to the calculation of the number of the workers who are physically disabled in paragraph 1, and the provisions of paragraph 3 of the same article shall apply mutatis mutandis in applying the provisions of paragraph 1 to the parent employer.
4. Special provisions concerning the calculation of the amount of the adjustment allowance in the event of the merger of employers that are legal persons, or in the event of the succession (including comprehensive testamentary gifts; the same applies in Article 39) of employers that natural persons, and other necessary matters relating to adjustment allowances, other than the matters prescribed in the preceding two paragraphs, shall be prescribed by Cabinet Order.
   
   

(Supply of Grants)

Article 20. The Minister of Labour shall supply the grants provided for in Article 18, items 2 to 4, in accordance with the grant requirements, grant amounts and other standards for grants prescribed by Ministry of Labour Ordinance.

2. With respect to the supply of grants under the preceding paragraph, consideration shall be given so that the employment of the physically disabled will be promoted and continued most effectively and most efficiently, in conjunction with measures taken to promote the occupational stability of the physically disabled and other measures.

Articles 21 to 25. Deleted

Subsection II.
Collection of Levy for Employing the Physically Disabled

(Collection of Levy for Employing Physically Disabled and Obligation for Payment Thereof)

Article 26. The Minister of Labour shall, in accordance with this subsection, collect the levy for employment the physically disabled (hereinafter referred to as "levy") from employers every year, for the purpose of applying it to the expenses necessary for paying the adjustment allowance provided for in Article 18, item 1 and for supplying the grants provided for in items 2 to 4 of the same article, and to the expenses necessary for transaction of the affairs concerning the business provided in each item of that article.

2. Employer shall bear the obligation to pay the levy.
   
   

(Amount of Levy, etc.)

Article 27. The amount of levy to be paid by employers shall be, for every year, the amount obtained by multiplying the basic amount for adjustment by the total of the numbers obtained by multiplying the number of workers employed on the first day of every month in the year concerned by the basic rate of employment (when there is any fraction under one person in such figure, such fraction shall be omitted).

2. The basic amount of adjustment shall be the sum prescribed by Cabinet Order on the basis of the average amount of special expenses (this means the expenses usually necessary for establishment or improvement of the facilities or equipment necessary for employing the physically disabled, the expenses necessary for measures for the proper employment management of the physically disabled and other expenses especially necessary for employing the physically disabled) per month which would normally be necessary for each of the physically disabled concerned in the event that the employer employed the number of physically disabled obtained by multiplying the number of workers employed by the standard employment quota rate.
3. The standard employment quota rate in the preceding two paragraphs shall be fixed on the basis of the ratio of the total number of workers who are physically disabled to the total number of workers and shall be prescribed by Cabinet Order at least once every five years, with due consideration for changes in the ratio concerned.
4. The provisions of Article 15, paragraph 2 shall apply mutatis mutandis to the calculation of the total number of workers who are physically disabled in the preceding paragraph, and the provisions of paragraph 3 of the same article shall apply mutatis mutandis in applying the provisions of paragraph 1 to the parent employer.
   
   

Article 28. In the case of paragraph 1 of the preceding article, when the employer concerned is employing workers who are physically disabled in the year concerned and the amount obtained by multiplying the basic amount for adjustment provided in paragraph 2 of that article by the total number of workers who are physically disabled employed by the employer concerned on the first day of every month in the year concerned is less than the amount calculated under the provisions of paragraph 1 of that article, the amount of levy to be paid by the employer concerned shall, notwithstanding the provisions of that paragraph, be equal to the difference.

2. In the case of paragraph 1 of the preceding article, when the employer concerned is employing workers who are physically disabled in the year concerned and the amount obtained by multiplying the basic amount for adjustment provided in paragraph 2 of that Article by the total number of workers who are physically disabled employed by the employer concerned on the first day of every month in the year concerned is not less than the amount calculated under the provisions of paragraph 1 of that Article, notwithstanding the provisions of that paragraph, the levy shall not be collected with respect to the employer concerned.
3. The provisions of Article 15, paragraph 2 shall apply mutatis mutandis to the calculation of the number of workers who are phy-sically disabled in the preceding two paragraphs, and the provisions of paragraph 3 of that Article shall apply mutatis mutandis in applying the provisions of the preceding two paragraphs to the parent employer.
   
   

(Payment, etc. of Levy)

Article 29. Employers shall submit a declaration of the amount of levy for the year concerned and other matters provided for by Ministry of Labour Ordinance to the Minister of Labour within forty-five (45) days counting from the first day of the next year (or, with respect to employers who discontinue their business during the year concerned, from the day on which the business concerned was discontinued).

2. The employers shall pay the amount of levy stated in the declaration in the preceding paragraph within the time limit for submission of the declaration in that paragraph.
3. The declaration in paragraph 1 shall be accompanied by documents setting forth the number of workers and the number of workers who are physically disabled in every workplace on the first day of every month in the year concerned, and other matters provided for by Ministry of Labour Ordinance.
4. The Minister of Labour shall, when employers have not submitted the declaration under paragraph 1 by the time limit for submission of the declaration in that paragraph, or the Minister has determined that there is an error in the statements of the declaration under that paragraph, fix the amount of levy and notify the employer for payment.
5. An employer who has received the notification for payment under the provisions of the preceding paragraph shall, when such employer has not submitted the declaration under paragraph 1 (including a case when the employer has submitted a declaration stating that there is no amount of levy to be paid), pay the amount of levy fixed by the Minister of Labour under the provisions of the preceding paragraph, and when the amount of levy stated in the declaration under paragraph 1 is short of the amount of levy fixed by the Minister of Labour under the provisions of the preceding paragraph, pay such deficit, to the Minister of Labour within fifteen (15) days after the date of receipt of the above notification.
6. In the event that the amount of levy paid by an employer exceeds the amount of levy fixed by the Minister of Labour under paragraph 4, the Minister of Labour shall, when there is any unpaid levy or other amounts to be collected under the provisions of this subsection apply such amount in excess thereto, and return the rest, if any, and when there is no unpaid levy or other sums to be collected under the provision of this subsection, return such amount in excess.
7. The provisions of Article 15, paragraph 3 shall apply mutatis mutandis in applying the provisions of paragraphs 1, 3 and 4 to the parent employer. In this case, the expression "the parent company concerned" shall be replaced with "the parent company concerned, and the establishment of the subsidiary company concerned shall be deemed to be the establishment of the parent employer concerned."
   
   

(Deferred Payment of Levy)

Article 30. The Minister of Labour may, in accordance with Ministry of Labour Ordinance, upon the request of employers, permit them to defer payment of the levy.

(Penalty)

Article 31. The Minister of Labour shall, when employers are required to pay the full amount of the levy or the deficiency thereof under the provisions of Article 29, paragraph 5, collect as a penalty the amount obtained by multiplying the amount to be paid (when there is any fraction under one thousand [1,000] yen in such figure, such fraction shall be omitted) by ten percent; provided, however, that this shall not apply when an employer has become liable to pay the full amount of the levy or the deficiency thereof because of a natural calamity or other unavoidable cause.

2. Notwithstanding the provisions of the preceding paragraph, when the full amount of the levy or the deficiency thereof provided in the same paragraph is under one thousand (1,000) yen, the penalty in the same paragraph shall not be collected.
3. The Minister of Labour shall, in the case of collecting the penalty under the provisions of paragraph 1, in according with Ministry of Labour Ordinance, designate the time limit for payment and give a notice to the employer of the amount of penalty to be paid.
   
   

(Call for Assessed Sum and Disposition for Failure to Pay)

Article 32. The Minister of Labour shall, when there is a person who has not paid the levy or other assessed sums under the provisions of this subsection, designate the time limit and call upon such person to pay.

2. In the case of a call to pay under the provisions of the preceding paragraph, the Minister of Labour shall dispatch a demand for payment to the person obligated to pay. In this case, the time limit to be fixed in the demand shall be a date at least ten (10) days after the date of dispatching the demand.
3. In the event that those who have been called upon to pay under the provisions of paragraph 1 do not pay the levy or other assessed sums under the provisions of this subsection in full by the time limit fixed, the Minister of Labour may execute a disposition for failure to pay in accordance with the procedures for the disposition for failure to pay national tax.
   
   

(Overdue Interest)

Article 33. When the Minister of Labour has called for payment of the levy under the provisions of paragraph 1 of the preceding article, the Minister shall collect overdue interest calculated at the rate of 14.5 percent per annual on the amount of the levy in connection with the demand for payment, for the number of days from the day after the time limit for payment to the day prior to payment in full thereof or seizure of property; provided, however, that this shall not apply if the amount of the levy in connection with the demand for payment is under one thousand (1,000) yen.

2. In a case under the preceding paragraph, when a part of the amount of the levy has been paid, the amount of the levy used as the basis for calculating the amount of overdue interest for the period from and after the date of payment thereof shall be the amount of the levy less the amount which has been paid.
3. In calculating the overdue interest, when there is any fraction under one thousand (1,000) yen in the amount of levy in the preceding two paragraphs, such fraction shall be omitted.
4. When there is any fraction under one hundred (100) yen in the amount of overdue interest calculated under the provisions of the preceding three paragraphs, such fraction shall be omitted.
5. Overdue interest shall not be collected in a case falling under any of the following items; provided, however, that, in a case under item 4, this shall be limited to the portion corresponding to the period for which execution was suspended or postponed:

   (1) when the levy is paid in full by the time limit fixed in the demand for payment;

   (2) when the demand for payment was given by the method of public notification because the address or residence of the person obliged to pay is not known;

   (3) when the amount of overdue interest is less than one hundred (100) yen;

   (4) when the execution of the disposition for failure to pay with respect to the levy has been suspended or postponed;

   (5) when it is regarded that there is an unavoidable cause for not paying the levy.
   
   

(Order of Preferential Right)

Article 34. The order of preferential right of the levy or other assessed sums under the provisions of this subsection shall be next after the national tax and the local tax.

(Procedure for Collecting Assessed Sums, etc.)

Article 35. The levy and other assessed sums under the provisions of this subsection shall be collected according to the procedure for collection of national tax, unless otherwise provided for in this subsection.

(Prescription)

Article 36. The right to collect the levy or other assessed sums provided for in the provisions of this subsection, or to receive the refund thereof, shall be extinguished by prescription when two years have elapsed.

2. The notification for payment of the levy or other assessed sums under the provisions of this subsection or the demand for payment under the provisions of Article 32, paragraph 1 by the Minister of Labour shall, notwithstanding the provisions of Article 153 of the Civil Code (Law No. 89 of 1891), have the effect of interrupting the prescriptive period.
   
   

Articles 37 and 38. Deleted.

(Delegation to Cabinet Order)

Article 39. Special provisions concerning the calculation of the amount of levy in the event of the merger of the employers that are legal persons, or in the event of the succession of employers that are natural persons, and other matters necessary for the levy and other sums to be collected provided in this subsection, other than the matters prescribed in this subsection, shall be prescribed by Cabinet Order.

Subsection III.
Carrying Out Services Concerning the Levy and Grants System for Employing the Physically Disabled by Japan Association for Employment of the Disabled

(Carrying Out Services Concerning the Levy and Grants System for Employing the Physically Disabled by Japan Association for Employment of the Disabled)

Article 39-2. The Minister of Labour shall, when Japan Association for Employment of the Disabled is established under the provisions of the next Chapter, entrust the services listed in each item of Article 18 (hereinafter referred to as the "services relating to the levy"), to that Association.

2. The provisions of Article 9-10, paragraphs 2 to 5, shall apply mutatis mutandis to entrusting the carrying out of services relating to the levy under the provisions of the preceding paragraph to Japan Association for Employment of the Disabled. In this case, "and the names and locations of the vocational centers for the disabled where said Association will carry out said services" in paragraph 2 of that Article shall be replaced with "and the place of the office carrying out the services relating to the levy provided in Article 39-2, paragraph 1".
   
   

Article 39-3. In applying the provisions of the preceding two subsections to the services relating to the levy to be carried out by Japan Association for Employment of the Disabled, "the Government" in Article 18 and "the Minister of Labour" in the provisions of Article 19, paragraph 1; Article 20, paragraph 1; Article 26, paragraph 1; Article 29, paragraph 1 and paragraphs 4 to 6; Article 30; Article 31, paragraphs 1 and 3; Article 32; Article 33, paragraph 1; and Article 36, paragraph 2 shall be replaced with "Japan Association for Employment of the Disabled", and "in accordance with the procedures for the disposition for failure to pay national tax" in Article 32, paragraph 3 shall be replaced with "in accordance with the procedures for the disposition for failure to pay national tax, with the approval of the Minister of Labour."

(Approval by Minister of Labour Concerning Supply of Grants)

Article 39-4. Japan Association for Employment of the Disabled shall, in the event of carrying out the services relating to the levy, when it wishes to receive grants under Article 18, items 2 to 4 itself, shall obtain the approval of the Minister of Labour, in accordance with Ministry of Labour Ordinance.

(Possession of Assessed Sums to be Collected)

Article 39-5. The levy and other assessed sums under the provisions of the preceding subsection and this subsection collected by Japan Association for Employment of the Disabled shall be deemed to be income of said Association.

(Filing Objection against Collection of Assessed Sums)

Article 39-6. Those with complaints regarding dispositions of imposing or collecting the levy and other assessed sums under the provisions of the preceding subsection and this subsection (except for dispositions by the Minister of Labour) may request investigation by the Minister of Labour under the Administrative Complaint Investigation Law (Law No. 160 of 1962).

(Relationship between Request for Investigation and Lawsuit)

Article 39-7. An action for revoking the disposition provided in the preceding article may be raised only after the decision of the Minister of Labour on the request for investigation of the disposition concerned.

(Order to Submit Materials, etc.)

Article 39-8. Japan Association for Employment of the Disabled may, when it carries out the services relating to the levy, demand that employers submit papers concerning the employment situation of workers who are physically disabled and other matters and other objects, to the extent necessary with respect to the services provided for in Article 18, item 5.

2. Japan Association for Employment of the Disabled, when it carries out the services relating to the levy and regards it as necessary for those services, may demand that employers, their organizations or persons listed in Article 18, item 3-2, (b) to (d) (referred to as the "employers, etc." in Article 81, paragraph 1) report with respect to the necessary matters.

Section III.
Special Provisions for Short-Time Workers, etc.,
Who Are Severely Physically Disabled

(Special Provisions Regarding Provisions for Services Relating to Employment Obligations, etc. and the Levy and Grants)

Article 39-9. This section provides that the provisions of the two preceding sections concerning personnel who are physically disabled and workers who are physically disabled (except for Article 10; Article 11, paragraph 2; Article 14, paragraphs 2 through 4; Article 15, paragraph 2 [including cases in which it applies mutatis mutandis to Article 19, paragraph 3; Article 27, paragraph 4; and Article 28, paragraph 3]; Article 17; Article 19, paragraph 2; and Article 27, paragraphs 2 and 3) shall apply to short-time personnel who are severely physically disabled and short-time workers who are severely physically disabled.

(Special Provisions Regarding Applying Provisions Relating to Employment Obligations, etc., in Cases of Short-Time Personnel Who are Severely Physically Disabled)

Article 39-10. In a case provided for in Article 11, paragraph 1, with respect to applying the provisions of that paragraph where short-time personnel who are severely physically disabled work for the organization concerned, the official with appointing authority for the organization concerned shall, by employing one short-time personnel who is the severely physically disabled instead of personnel other than personnel who are physically disabled, be deemed to have appointed the number of personnel who are physically disabled equal to the number prescribed by Ministry of Labour Ordinance in less than the number prescribed by Cabinet Order as provided in Article 11, paragraph 2, before formulating the program under the same paragraph.

2. The official with appointing authority for the State or local public body may, when formulating or executing the program concerning the appointment of physically disabled under Article 11, paragraph 1, regard the appointment of short-time personnel who are severely physically disabled as included in the appointment of the personnel who are physically disabled.
3. With respect to applying the provisions of Article 13, the short-time personnel who are severely physically disabled shall be deemed to be personnel who are physically disabled.
   
   

(Special Provisions Regarding Application of the Provisions Concerning Employment Obligation, etc. to the Short-Time Workers Who are Severely Physically Disabled)

Article 39-11. In a case provided for in Article 14, paragraph 1, with respect to applying the provisions of that paragraph where the employer concerned employs short-time workers who are severely physically disabled the employer shall, by employing one short-time worker who is severely physically disabled instead of a worker other than workers who are physically disabled at the time of fluctuation in employment relations in question, be deemed to have employed the number of workers who are physically disabled equal to the number prescribed by Ministry of Labour Ordinance in less than the number prescribed by Cabinet Order as provided in Article 14, paragraph 3.

2. With respect to applying the provisions of Article 14, paragraph 5, short-time workers who are severely disabled shall be deemed to be workers who are physically disabled.
3. With respect to applying the provisions of Article 14-2, paragraph 1, "workers" in that paragraph (except item 2 of this paragraph) shall be replaced with "workers or short-time workers who are severely physically disabled".
4. With respect to applying the provisions of Article 15, paragraph 1, short-time workers who are severely physically disabled shall be deemed to be workers who are physically disabled, while in calculating the number of workers who are physically disabled that is provided in that paragraph, one short-time worker who is severely physically disabled shall be deemed equal to the number of workers who are physically disabled prescribed by Ministry of Labour Ordinance in less than the number prescribed by Cabinet Order as provided in Article 15, paragraph 2.
5. The employer may, when formulating or executing the program concerning employment of the physically disabled under Article 15, paragraph 1, regard the employing of short-time workers who are severely physically disabled included in the employing of workers who are physically disabled.
6. with respect to applying the provisions of Article 15, paragraph 3, "workers" in that paragraph shall be replaced with "workers or short-time workers who are severely physically disabled."
   
   

(Carrying Out Services Relating to Levy For Short-Time Workers Who Are Severely Physically Disabled)

Article 39-12. In calculating the number of workers who are severely disabled provided in Article 19, paragraph 1, each short-time worker who is severely physically disabled shall be deemed equal to the number of physically disabled workers prescribed by Ministry of Labour Ordinance in less than the number prescribed by Cabinet Order as provided in Article 15, paragraph 2 in a case in which it applies mutatis mutandis to Article 19, paragraph 3.

2. With respect to applying the provisions of Article 15, paragraph 3 in cases in which it applies mutatis mutandis under Article 19, paragraph 3, Article 28, paragraph 3 and Article 29, paragraph 7, "workers" in that paragraph shall be replaced with "workers or short-time workers who are severely physically disabled."
3. The Government may also carry out services equivalent to the services listed in Article 18, items 2 to 4, and Article 18, item 6 (but limited to the part concerning items 2 to 4 of that article; this also applies to the next paragraph and to Article 39-16) with respect to short-time workers who are severely physically disabled.
4. In the case of preceding paragraph, the services concerned shall be deemed to be included in the services set forth in Article 18, items 2 to 4, and Article 18, item 6; and the provisions of Article 20; Article 26; Subsection III of the previous Section, Article 59, paragraph 1; Articles 59-2 to 60-2; Articles 64 to 64-3; Article 64-5 and Article 70-2 (including the penal provisions concerning those provisions) shall apply. In this case, "Article 18" in Article 39-3 shall be replaced with "Article 39-12, paragraph 3."
5. With respect to applying the provisions of Article 28, paragraphs 1 and 2, short-time workers who are severely physically disabled shall be deemed to be workers who are physically disabled while in calculating the number of workers who are physically disabled provided in these paragraphs, each short-time worker who is severely physically disabled shall be deemed equal to the number of physically disabled workers prescribed by Ministry of Labour Ordinance in less than number prescribed by Cabinet Order as provided in Article 15, paragraph 2 in a case in which it applies mutatis mutandis under paragraph 3 of Article 28.
6. With respect to applying the provisions of Article 29, paragraph 3, "and the number of workers who are physically disabled" in the same paragraph shall be replaced with "as well as the number of workers who are physically disabled and the number of short-time workers who are severely physically disabled."
7. With respect to applying the provisions of Article 39-8, paragraph 1 and Article 81, paragraph 2 (including the penal provisions concerning those provisions), short-time workers who are severely physically disabled shall be deemed to be workers who are physically disabled.

Section IV.
Special Provisions for the Mentally Retarded, etc.

(Special Provisions Regarding Applicationn of the Provisions Concerning Employment Obligation etc. and Services Relating to the Levy)

Article 39-13. The provisions of Sections I and II (except for Article 15, paragraph 2 in cases in which it applies mutatis mutandis under Article 10; Article 14, paragraphs 2 to 4; Article 17; Article 19, paragraph 2; Article 27, paragraphs 2, 3 and 4) shall apply to the mentally retarded, etc. in accordance with this section.

(Special Provisions Regarding Application of the Provisions Concerning Employment Obligation, etc. to the Mentally Retarded)

Article 39-14. In a case provided for in Article 11, paragraph 1, with respect to applying the provisions of that paragraph where personnel who are mentally retarded work for the organization concerned, the official with appointing authority for the organization concerned shall be deemed to have appointed the number of personnel who are physically disabled equal to the number of personnel who are mentally retarded instead of personnel other than personnel who are physically disabled before formulating the program under the same paragraph.

2. The official with appointing authority for the State or local public body may, when formulating or executing the program concerning the appointment of physically disabled under Article 11, paragraph 1, regard the appointment of the mentally retarded as included in the appointment of the physically disabled.
3. With respect to applying the provisions of Article 11, paragraph 2, personnel who are severely mentally retarded shall be deemed to be personnel who are severely physically disabled.
4. With respect to applying the provisions of Article 13, the personnel who are mentally retarded shall be deemed to be personnel who are physically disabled.
   
   

Article 39-15. In a case provided for in Article 14, paragraph 1, with respect to applying the provisions of that paragraph where the employer concerned employs workers who are mentally retarded, the employer concerned shall be deemed to have employed the number of workers who are physically disabled equal to the number of workers who are mentally retarded (or, when the employer concerned employs one or more workers who are severely mentally retarded, the number calculated by deeming one such worker as equal to the number of workers who are mentally retarded prescribed by Cabinet Order as provided in Article 14, paragraph 3) instead of workers other than workers who are physically disabled at the time of the fluctuation in employment relations in question.

2. With respect to applying the provisions of Article 14, paragraph 5, workers who are mentally retarded shall be deemed to be workers who are physically disabled.
3. With respect to applying the provisions of Article 14-2, paragraph 1, "physically disabled" in the provisions of items 2 to 4 of that paragraph shall be replaced with "physically disabled or mentally retarded".
4. With respect to applying the provisions of Article 15, paragraph 1, workers who are mentally retarded are deemed to be workers who are physically disabled, while in calculating the number of workers who are physically disabled under that paragraph, one worker who is mentally retarded is deemed equal to one worker who is physically disabled (or, when the said employer employs workers who are severely physically disabled, as equal to the number prescribed by Cabinet Order as provided in paragraph 2 of Article 15).
5. The employer may, when formulating or executing the plan concerning the hiring of the physically disabled under Article 15, paragraph 1, regard the hiring of the mentally retarded as included in the hiring of the physically disabled.
   
   

(Carrying Out Services Relating to Levy for Workers Who are Mentally Retarded)

Article 39-16. Workers who are mentally retarded shall be deemed to be physically disabled; and the provisions of Article 19, paragraph 1; Article 28, paragraphs 1 and 2; Article 29, paragraph 3; Article 39-8, paragraph 1; and Article 81, paragraph 2 (including the penal provisions concerning those provisions) shall apply.

2. With respect to applying the provisions of article 15, paragraph 2 in cases in which it applies mutatis mutandis under Article 19, paragraph 3 and Article 28, paragraph 3, workers who are severely mentally retarded are deemed to be workers who are severely physically disabled.
3. The Government may also carry out services equivalent to the services listed in Article 18, items 2 to 4 and item 6 with respect to workers who are mentally retarded.
4. In the case of the preceding paragraph, the services concerned shall be deemed to be included in the services set forth in Article 18, items 2 to 4 and item 6; and the provisions of Article 20; Article 26; Section II,Subsection III; Article 59, paragraph 1; Articles 59-2 to 60-2; Articles 64 to 64-3; Article 64-5 and Article 70-2 (including penal provisions concerning those provisions) shall apply. In this case, "physically disabled" in Article 20, paragraph 2 shall be replaced with "physically disabled or mentally retarded", and "Article 18" in Article 39-3 replaced with "Article 39-16, paragraph 3."
   
   

(Special Provisions for Short-Time Workers, etc., Who Are Severely Mentally Retarded)

Article 39-17. The provisions of the preceding Section relating to short-time personnel who are severely physically disabled and short-time workers who are severely physically disabled shall apply mutatis mutandis to short-time personnel who are severely mentally retarded and to short-time workers who are severely mentally retarded. In this case, "'Article 18' in Article 39-3 shall be replaced with 'Article 39-12, paragraph 3'" in Article 39-12, paragraph 4 shall be replaced with"'the physically disabled' in Article 20, paragraph 2 shall be replaced with 'the physically disabled or mentally retarded' and 'Article 18' in Article 39-3 replaced with 'Article 39-12, paragraph 3 as it applies mutatis mutandis under Article 39-17."

(Carrying Out Services, etc. concerning the Providing of Grants relating to the Disabled as Prescribed by Cabinet Order Provided in Article 5, Paragraph 1)

Article 39-18. The provisions of Article 39, paragraphs 3 and 4 apply mutatis mutandis to the disabled persons prescribed by Cabinet Order as provided in Article 5, paragraph 1. In this case, "the physically disabled or mentally retarded" in Article 39-16, paragraph 4 shall be replaced with "the physically disabled, mentally retarded, or physically disabled prescribed by Cabinet Order as provided in Article 5, paragraph 1" and "Article 39-16, paragraph 3" replaced with "Article 39-16, paragraph 3 in a case in which it applies mutatis mutandis under Article 39-18."

(Research, etc. concerning the Promotion of Employment of the Disabled Other than the Physically Disabled)

Article 39-19. The Government may also carry out services equivalent to the services listed in Article 18, item 4 and item 6 (but limited to the part concerning item 4 of that Article; in the next paragraph, the same applies) with respect to the disabled (except for the physically disabled, the mentally retarded, and the disabled prescribed by Cabinet Order as provided in Article 5, paragraph 1).

2. In the case of the preceding paragraph, the services concerned shall be deemed to be included in the provisions of Article 18, item 4 and the services listed in Article 18, item 6, and the provisions of Article 20; Article 26; Section II, Subsection III; Article 59, paragraph 1; Articles 59-2 to 60-2; Articles 64 to 64-3; Article 64-5; and Article 70-2 (including the penal provisions concerning those provisions) shall apply. In this case, "physically disabled" in Article 20, paragraph 2 shall be replaced with "disabled", and "Article 18" in Article 39-3 replaced with "Article 39-19, paragraph 1."

Chapter IV.

Japan Association for Employment of the Disabled

(Juridical Personality)

Article 40. Japan Association for Employment of the Disabled (hereinafter referred to as the "Association") shall be a juridical person.

(Number)

Article 41. The Association shall be organized, limited to a single entity.

(Capital)

Article 41-2. The capital of the Association shall be the amount which is regarded to have been contributed by the Government under the provisions of Article 6 of the Supplementary Provisions of the Law for Amending a Part of the Physically Handicapped Persons' Employment Promotion Law (Law No. 41 of 1987).

2. The Government may, when it regards it as necessary, make additional contributions to the Association within the limits fixed by the budget.
3. The Association shall, when the Government makes contributions under the provisions of the preceding paragraph, increase its capital in accordance with the contributed amount.
4. The Government may, when it makes contributions to the Association under the provisions of paragraph 2, make property other than money an object of contribution.
5. The value of property other than money made an object of contribution under the provisions of the preceding paragraph shall be the value appraised by an appraisal member on the basis of the current price as of the date of contribution.
6. Necessary matters concerning the appraisal member and other matters concerning the appraisal under the preceding paragraph shall be provided by Cabinet Order.
   
   

(Appellation)

Article 42. The Association shall use the characters for Japan Association for Employment of the Disabled in its appellation.

2. Those other than the Association shall not use the characters Japan Association for Employment of the Disabled in their appellation.
   
   

(Registration)

Article 43. The Association shall be registered in accordance with Cabinet Order.

2. The matters to be registered under the provisions of the preceding paragraph may not be set up against a third person until after such registration.
   
   

(Promoters)

Article 44. In order to organize the Association, it shall be necessary for five or more organizations of employers listed in Article 50, paragraph 1, item 1 which wish to be members thereof to become promoters thereof.

(Inaugural General Meeting)

Article 45. The promoters shall draft the articles of association and the business plan, give public notice of the outline thereof together with the date and time and the place of the inaugural general meeting at least two (2) weeks before that meeting, and hold the inaugural general meeting.

2. The approval of the articles of association and the business plan and other decisions on matters necessary for the organization shall be made by decision of the inaugural general meeting.
3. The proceedings of the inaugural general meeting shall be decided by a majority of not less than two thirds (2/3) of the voting rights of those attending that meeting, with at least one-half (1/2) of those who are qualified as members and have applied to become members to the promoters by the day fixed for the inaugural general meeting in attendance.
   
   

(Request for Approval of Establishment)

Article 46. The promoters shall request the Minister of Labour for approval of establishment without delay after the end of the inaugural general meeting, submitting the application accompanied by the articles of association, the business plan, and the papers in which the matters provided for by Ministry of Labour Ordinance are set forth.

(Approval of Establishment)

Article 47. The Minister of Labour shall, in giving approval of establishment, review whether the request for approval under the provisions of the preceding article meets the following items:

(1) the procedure of establishment and the contents of the articles of association and the business plan meet the provisions of laws and ordinances;

(2) there is no false statement in the articles of association and the business plan;

(3) it is regarded that the personnel, the methods of business and other matters relating to the plan for carrying out business are proper, and there is sufficient economic and technical basis for reliable performance of the plan;

(4) in addition to the preceding items, it is regarded that management of business will be carried out in a sound manner and that there is a certainty of contributing to the promotion of employment of the disabled and the vocational stability thereof.

(Transfer of Business)

Article 48. The promoters shall, when the approval of establishment is given, transfer the business to the executives without delay.

(Time of Establishment)

Article 49. The Association shall come into existence when the establishment thereof is registered at the place of the principal office.

(Qualification for Membership)

Article 50. The following are qualified for membership:

(1) organizations of employers which carry out services concerning the promotion of employment of the disabled and the vocational stability thereof; and

(2) those for which the articles of association provide, other than those provided for in the preceding item.

2. The Association shall not, in the event that those who are listed in the preceding items want to join the Association, refuse their entry or set unreasonable conditions on their entry without good reason.
   
   

(Membership Fee)

Article 51. The Association may, in accordance with the articles of association, collect a membership fee from its members.

(Articles of Association)

Article 52. The following matters shall be stated in the articles of association:

(1) purpose;

(2) appellation;

(3) place of Office;

(4) matters concerning members;

(5) matters concerning membership fees;

(6) matters concerning executives;

(7) matters concerning meetings;

(8) matters concerning the council;

(9) business;

(10) matters concerning accounts;

(11) business year;

(12) matters concerning dissolution;

(13) matters concerning modification of articles of association;

(14) method of public notice.

2. The alteration of the articles of association shall not take effect unless approved by the Minister of Labour.
   
   

(Executives)

Article 53. The Association shall have one President, up to six directors and up to two auditors as executives.

2. In addition to the directors and auditors under the preceding paragraph, the Association may have part-time directors and auditors as executives, in accordance with the articles of association.
3. The President shall represent the Association and preside over the business thereof.
4. The directors shall, in accordance with the articles of association, assist the President in taking charge of the business of the Association, and perform the President's duties in his or her place if he or she is unable to perform them or if the presidency is vacant.
5. The auditors shall audit the business of the Association and the status of accounts.
6. The auditors may, when they regard it as necessary based on the results of audit, submit their opinions to the President or the Minister of Labour.
   
   

(Appointment and Dismissal and Term of Office of Executives)

Article 54. The executives shall, in accordance with the articles of association, be selected and appointed or dismissed at the general meeting; provided, however, that the executives at the time of establishment shall be selected and appointed at the inaugural general meeting.

2. The selection and appointment shall not take effect unless approved by the Minister of Labour.
3. The term of office of the President shall be the term up to three (3) years provided for by the articles of association, and the terms of office of the directors and auditors shall be the term up to two (2) years provided for by the articles of association; provided, however, that the term of office of the President at the time of establishment shall be the term of up to one and a half years fixed at the inaugural general meeting, and the terms of office of the directors and auditors at the time of establishment shall be the term of up to one year fixed at the inaugural general meeting.
4. The executives may be reappointed to an office.
   
   

(Ban on Concurrent Employment of Auditors)

Article 55. The auditors shall not concurrently hold the posts of President, director or personnel of the Association.

(Ban for Concurrent Employment of Executives)

Article 55-2. The executives (except for the part-time directors) shall not be the executives of any profit-making organization, or be engaged in any profit-making enterprise; provided, however, that this shall not apply when approval by the Minister of Labour has been obtained.

(Restriction of Representative Authority)

Article 56. With respect to matters on which the interests of the Association and the President are mutually opposed, the President shall not possess representative authority. In this case, the auditors shall represent the Association in accordance with the articles of association.

(Appoint of Personnel)

Article 57. The President shall appoint the personnel of the Association.

(Nature as Civil Servant of Executives and Personnel)

Article 57-2. With respect to application of the Criminal Code (Law No. 45 of 1907) and other penal provisions, the executives and personnel shall be deemed to be personnel engaged in public service under laws and ordinances.

(General Meeting)

Article 58. The President shall, in accordance with the articles of association, call an ordinary general meeting at least once every business year.

2. The President may, when he regards it as necessary, call a special general meeting.
3. The following matters shall be decided by the general meeting:

   (1) the modification of the articles of association;

   (2) the decision on or change of the budget, the business plan and the plan for funds;

   (3) the drafting, amendment or abrogation of the statement of business methods;

   (4) dissolution;

   (5) the expulsion of members;

   (6) other matters provided for in the articles of association.

4. The proceedings of the general meeting shall be decided by a majority of not less than one-half (1/2) of the voting rights of those attending the meeting concerned, with at least one-half (1/2) of all members in attendance; provided, however, that the proceedings concerning items 1, 4 and 5 of the preceding paragraph shall be decided by a majority of not less than two-thirds (2/3) of the voting rights of those attending the meeting concerned, with at least one-half (1/2) of all members in attendance.
5. The President may, when the general meeting does not materialize or the President deems that there is no time to call the meeting, dispose of the matters listed in paragraph 3, items 2, 3 and 6 which necessitate emergency measures.
6. The President shall report on and request approval for matters disposed of under the preceding paragraph at the next general meeting.
   
   

(Council)

Article 58-2. The Association shall have a Council.

2. The Council shall, in response to inquiries by the President, deliberate important matters concerning the conduct of the business of the Association.
3. The Council shall consist of up to twenty councillors.
4. The Councillors shall be appointed by the President, with the approval of the Minister of Labour, from among those persons having learning and experience necessary for the proper conduct of the business of the Association.
   
   

(Business)

Article 59. The Association shall carry out the following business:

(1) to carry out the services of establishing and administering the vocational centers;

(1-2) to carry out the administration services for the vocational training centers;

(1-3) to carry out services relating to the levy;

(1-4) to carry out the services provided for in Article 79, paragraph 2;

(2) to give guidance and assistance with respect to hiring the disabled, improving the employment environment and other technical matters relating to employing the disabled to members and employers;

(3) to carry out courses on employment management for the disabled for employers and others;

(3-2) to provide grants meeting the standards provided for by Ministry of Labour Ordinance to employers who continue to employ worker(s) for at least a fixed period after such worker(s) have become disabled and who take the measures for such continuation of employment provided for by Cabinet Order;

(4) to hold contests of skill for the physically disabled;

(5) to carry out surveys, research and publicity on employing the disabled;

(5-2) to provide international cooperation relating to employment of the disabled;

(6) to carry out services incidental to the services listed in item 2 through the preceding item;

(7) to carry out services necessary for promotion of the employment of the disabled and the occupational stability thereof, other than those provided for in the preceding items.

2. The Association shall, when it carries out the business listed in item 7 of the preceding paragraph, obtain the approval of the Minister of Labour.
   
   

(Entrusting with Business)

Article 59-2. The Association may, with the approval of the Minister of Labour, entrust juridical persons which carry out services concerning the promotion of employment of the disabled and the occupational stability thereof of financial institutions with part of the business listed in paragraph 1, items 1-3 and 1-4 of the preceding article.

2. when the Minister of Labour has given the approval under the provisions of the preceding paragraph, financial institutions may, notwithstanding the provisions of other laws, be entrusted with the business in connection with the approval concerned.
3. With respect to application of the Criminal Code and other penal provisions, the executives and personnel of the financial institutions entrusted with the business under the provisions of paragraph 1 (referred to as the "entrusted financial institutions" in Article 68, paragraph 1; Article 85, paragraph 2; and Article 86, paragraph 1) who are engaged in the entrusted business concerned shall be deemed to be personnel who are engaged in public service under laws and ordinances.
   
   

(Statement of Business Methods)

Article 60. The Association shall, as to each business listed in Article 59, paragraph 1, items 1 to 1-3 and item 3-2, before commencing each business concerned, draft a statement of business methods and obtain the approval of the Minister of Labour. The same shall apply to an amendment thereof.

2. The matters to be stated in the statement of business methods under the preceding paragraph shall be provided for by Ministry of Labour Ordinance.
3. The Minister of Labour shall, upon giving approval under paragraph 1 as to the services in Article 59, paragraph 1, items 1-3 and 3-2, make an official announcement to that effect in the Official Gazette, in accordance with Ministry of Labour Ordinance.
   
   

(Notification of Commencing Business, etc.)

Article 60-2. The Association shall, at the time of commencement of each business listed in Article 59, paragraph 1, items 1 to 1-4 and item 3-2, notify the Minister of Labour of the date of commencement of the business concerned and the place of the office where the business concerned is carried out (as for the services listed in item 1 of that paragraph, the office where the services concerned are carried out and the vocational center which such office is to establish and administer; hereinafter in this article, the same applies). The same shall apply when the Association changes the place of the office where the businesses concerned are carried out.

(Business Year)

Article 61. The business year of the Association shall be from the 1st of April to the 31st of March in the next year.

(Approval of Budget, etc.)

Article 61-2. The Association shall draft the budget, the business plan and the plan for funds every business year, and shall obtain approval by the Minister of Labour before the start of the business year concerned. The same shall apply to an amendment thereof.

(Approval of Financial Statement, etc.)

Article 62. Every business year, the President shall prepare an assets list, balance sheet and statement of profit and loss (hereinafter referred to as the "financial statements"), and a statement of accounts for the business year concerned broken down by budget categories, the budget section, and shall submit these to the auditor(s) and also place copies at the principal office by two weeks before the day of the first ordinary general meeting called after the end of the business year concerned.

2. The President shall submit the documents provided for in the preceding paragraph, together with the opinion of the auditors, to the ordinary general meeting referred to in that paragraph, and shall request the approval thereof.
   
   

Article 63. The Association shall, every business year, within one (1) month from the last day of the ordinary general meeting referred to in paragraph 1 of the preceding article, submit the financial statements referred to in the same paragraph to the Minister of Labour and obtain the approval thereof.

2. The Association shall, when it submits the financial statements to the Minister of Labour under the provisions of the preceding paragraph, attach the statement of accounts referred to in paragraph 1 of the preceding article and the opinion of the auditors on the financial statements and the statement of accounts.
3. The Association shall keep the approved financial statements under the provisions of paragraph 1 at the principal office.
   
   

(Division of Accounts)

Article 64. The Association shall, with respect to the accounting for each business listed in Article 59, paragraph 1, items 1 to 1-3 and item 3-2, separate the accounting for each business from the accounting for the other businesses and set up special accounts for each.

(Disposition of Profit and Loss)

Article 64-2. The Association shall, every business year, when there is any profit in the profit and loss account for the service relating the levy, make up any loss carried over from the preceding year, and if there is still profit remaining, treat it as a reserve.

2. The Association shall, every business year, when there is any loss in the profit and loss account referred to in the preceding paragraph, adjust it by reducing the reserve provided for in the preceding paragraph, and if there is still a deficit remaining, treat it as a deficit carried forward.
   
   

(Loans)

Article 64-3. The Association shall, when it seeks to borrow money for funds with respect to the services, relating to the levy, obtain the approval of the Minister of Labour.

2. The borrowed money under the provisions of the preceding paragraph shall be repaid within the business year concerned; provided, however, that, with respect only to the amount which it is impossible to repay due to a deficiency of fund, such loan may be