Nissan Motor is to directly hire all temporary non-engineering staff in phases beginning in October, in an apparent effort to provide employment stability.
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Directly-hired employees enjoy more job security than those hired via job placement agencies and are eligible for more benefits, according to Japan’s labour office.
Nissan’s move may spur other companies to rethink their hiring practices although Toyota and Honda have reportedly said they have no plans at the moment to follow Nissan.
Last year, the Tokyo Labour Bureau demanded that Nissan improve its employment practice for workers sent by staffing agencies. The company will no longer receive non-engineering workers from those agencies and will also change the status of several hundreds of such workers already working at the company to direct employment if they wish, the company said.
It will also offer new six-month contracts that would be extended up to two years and 11 months, as judicial precedents make it difficult to terminate the contracts of employees hired for three years or longer.
