Stealth dismissal is not a legal term

 Stealth dismissal is not a legal term; it’s a colloquial label for “quiet firing.” Instead of saying “you’re fired,” an employer induces resignation by tactics like inconvenient reassignments, manipulating evaluations, stripping work, unfair demotion or pay cuts, or aggressively policing minor rule breaches. In Japan, such conduct can amount to power harassment or unlawful coercion to resign.

What’s legally at issue in Japan

  • Dismissal requires an “objectively reasonable cause” and “social appropriateness.” Abusive dismissal is invalid (Labour Contract Act, Art. 16).

  • Employers must give 30 days’ prior notice or pay 30 days’ wages in lieu, and employees can request a written statement of dismissal reasons (LSA Arts. 20 & 22).

  • Soliciting resignation is not illegal if the employee freely agrees, but persistent or intimidating pressure can become unlawful coercion.

  • For fixed-term contracts, non-renewal (“yatoi-dome”) has notice/reason standards; depending on renewals and expectations, abuse can be found.

  • Redundancy (economic dismissal) is strictly judged using four factors: necessity, efforts to avoid dismissal, rational selection, and fair procedure.

  • Employers have a duty to implement anti-harassment measures under the revised Act on Comprehensive Promotion of Labor Policies.

Typical red flags

  • Sudden, ill-fitting transfers; deprivation of duties or impossible targets

  • Inconsistent poor ratings; unexplained demotion or pay cuts

  • Exclusion from meetings/info; overt ignoring or harassment

  • Harsh punishment or stepped-up policing of trivial infractions

Practical steps (in order)

  1. Keep records
    Save evaluation forms, personnel orders, time logs, instructions, meeting notes, and screenshots of emails/chats in a timeline.

  2. Use internal channels
    Review work rules and HR systems; consult the harassment desk/HR in writing, giving a response deadline.

  3. Free public help
    Contact your Prefectural Labour Bureau’s “Comprehensive Labour Consultation Desk” for advice/administrative guidance or mediation (“assensen”). Confidential and free.

  4. Exercise your rights
    If dismissed, claim notice pay (if applicable) and request a written statement of reasons. For non-renewal, check notice and reason requirements.

  5. If talks stall
    Consider mediation via the Prefectural Labour Relations Commission and/or consult an attorney.

Don’t confuse these terms

  • Resignation solicitation: an “ask” to resign; ends if you say no. Coercion is not allowed.

  • Dismissal: unilateral termination by the company; requires reasonableness/appropriateness, notice (or pay), and a written reason statement on request.

  • Non-renewal (fixed-term): ending a fixed-term contract at expiry; notice and reasons may be required.

  • Redundancy (economic): judged under the four-factor test above.


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