Unfair Dismissal

Sample Cases


1.8 million yen settlement reached in labor tribunal after refusing 800,000 yen settlement

Case of Client S

Client S is a 40 year old male who lives with his wife and three children, and had joined a specialized trading company with less than 10 employees.

He had his doubts about the company from the beginning, due to his salary being different from what was originally discussed. Further to this, his three month trial period was unilaterally extended, and then he was dismissed from his position five months after joining the company, only being given a vague reason of “circumstances regarding company management.”

1.8 million yen settlement reached in labor tribunal after refusing 800,000 yen settlement

In reply to certified mail we sent, the lawyer representing the company said that they would agree to pay 800,000 yen, after which we broke off negotiations and filed for a labor tribunal, believing we could obtain a larger amount by taking them to court.
At the first hearing at Tokyo District Court, an agreement was reached where the company would pay a settlement of 1.8 million yen, including overtime. Client S was overjoyed and said that he was going to buy his daughter a bicycle.

Key Points

The reasons for Client S' victory were that he did not succumb to unfair pressure applied by the company, that he obtained a notice of dismissal from the company, and that he did not immediately agree to their first offer.
It is relatively easy for a court to determine that dismissal is invalid, but a court is quite careful about recognizing expression of intent to dismiss.
In Client S' case, he initially received a notice of dismissal that did not have the company seal, so he had to push them to provide one with the seal.
It is common to receive 3 to 6 months of salary in settlement when a labor tribunal rules that dismissal is invalid, but when time cards or other evidence is available, it is also possible to claim overtime pay.
While you may want the case to be resolved quickly, if you have evidence of overtime, it is extremely important to refuse any offer regarding dismissal alone and take the case to a labor tribunal, even when a reasonably large settlement is offered.

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