1,000,000 subsidy

Hi, I have a question regarding payment from employers. I live in Saitama and was forced to take a 2 month stay at home because of COVID-19. My employer (I'm a "Independent contractor" not a full-time employee) hasn't paid me for those two months and is insisting that the 1,000,000 yen subsidy that we got covers those two months we didn't work, plus two more that we did. As to not pay us. That would still be a little short of what I'm owed however.

My question is if they can legally do this. I've been doing a lot of reading and Article 26 of the Labour standards law says that we are gauranteed to be owed at least 60% for each month we were forced to stay home. Employment regulation dictates that the employer can't discriminate between fulltime and contractor employeers so I'm pretty sure we are still owed the 60%.

It gets a little more complicated because we only qualify for the 1,000,000 yen if any one month pay falls below 50%, and even then I believe it's a certain percentage up to 1,000,000. I'm quite confused about all the details and would like to know if anyone has this figured out.
I won't be completely heartless, and would be fine with my company not needing to cover the two months I *didn't* work, but would ask that they pay me for the two months I *did* work, and not just have it covered by the government subsidy.

Any thoughts?

You are a contractor, not an employee so you don't have the same entitlements, nor does the employer have the same obligations, but it depends on your contract - check with an employment lawyer for that.

On the sustainability grant, when you go through the application process you have to show you monthly income this year and last year, and the reduction in income. You need to meet the threshold (50%) and then the calculation takes the shortfall and multiplies it by 12 to get the allowable benefit, up to 1M.
It's all on https://www.jizokuka-kyufu.jp/ There are a few tricky bits to have the documentation correct/exactly the way they want it. I got tripped up on a tiny point regarding my company name when I went through the process.

For sole traders:
＜算定式＞
S ＝ A ー B × 12
S︓給付額（上限 100 万円）
A︓2019 年の年間事業収入
B︓対象月の月間事業収入

we only qualify for the 1,000,000 yen if any one month pay falls below 50%, and even then I believe it's a certain percentage up to 1,000,000. I'm quite confused about all the details and would like to know if anyone has this figured out.

you have to make sure that you are an employee.
employees are protected by labor law.
but, if you are a self-employer, you are not protected by labor law.

when they pay money against your working hours, you are an employee.

You’d need to first establish if you are an (1) independent/self-employed/business owner (on your own), or (2) employee, be it part-time or full-time. Please check the contract, and also who does the taxes and social insurances?

And in any case, since you’ve worked for two months, the company who hired you owe you the pay for these two months. That is separate from the two months you were “asked to stay at home.”

If you are (1) independent business owner, meaning, working on a complete freelance basis, doing your taxes on your own, and did not get any work hours from that employer for two months, yes, that was a decline in your revenues, and you can file for that “sustainability grant” of max. 1 million yen (or your actual loss/reduction compared with last year, whichever is lower), “IF” there was any month in 2020 where your revenues were lower by 50% or more compared to the same month of 2019.

What they are saying about “maximum” of 1 million is that for example, assuming your pay was 120,000 per month (1,440,000 annual), and if your revenue for the month of June 2020 was 50,000 due to reduced hours, for example, and it compared against 120,000 yen in June 2019, yes, you are eligible, and
S = 1,440,000 – 50,000 x 12
S = 840,000
This is lower than 1 million, so you get 840,000.

If your revenue for the month of June was 0, and it was 120,000 in June 2019, you are eligible, but
S = 1,440,000 – 0 x 12
S = 1,440,000
But this is higher than 1 million, so you get 1 million (that is the max).

All they are saying that you don’t get more than your “actual/assumed actual” loss. (Of course the calculation is simplified – by selecting only one month - to make it easy for people to apply. Your real loss at the end of the year may be higher or lower in the end.)

You’d need to attach images of your copy of “kakutei shinkoku sho” (tax filing document) from 2019, and your monthly revenue calculation for this year.


If you are an “employee” and were told by the employer to stay at home for the two months, yes, you should be eligible for the 60% pay.
But if the contract does not state any regular number of work days, you might not be eligible for that…

Thanks for your answers.

I've been with the company for almost 4 years as a subcontrator. It does state that I will work 5 days a week and I've already received the 1 million yen if that's any confusion.

My issue is that my company thinks that because I got the 1 million yen, that the money covers the two months that I didn't work (which is fine), but that my 1 million yen ALSO covers the two months I have been working aftewards as well. Thus they aren't paying me for that worked time.
I believe that they still need to pay me for the working months, irregardless because the subsidy isn't a replacement for what they owe me.
Does that make sense?

they aren't paying me for that worked time
That is a problem - you should be paid for your time worked. The government support/grant is separate. The 1M is not used like the income subsidy that some companies apply for.

are you sure you are a self-employer ?
I am doubtful.
if you are not a self-employer, your application and receiving of 1000000 yen is illegal. you steal the government money.
which is more serious that stealing the government money or non-payment from your company ?

what kind of resident status you have right now ?
are you filing every year by yourself (or hiring an accountant) ?
are you getting tax deduction of salary man, 給与所得者控除, 650000 yen ?

generally speaking, tax is higher, when you are a self-employer. but, you can claim the expense for income individually. are you doing that ?

this 1000000 yen is taxable. you need to file next year, in any way.
since it is highly unlikely that you are a self-employer, you will have serious trouble in future.
tax office will surely ask you your situation. if you make (made) mistakes, they will correct your filing for recent 5 year. at that time, your company will be investigated too and your co-workers will have same (serious) problems.
tax office may inform the illegality to immigration office.

please confirm whether you are really a self-employer or not.

when they find your illegal application of 1000000 yen, they will order you the money back with penalty charge.
by the way, they already know there are a lot of illegal applications. they have plenty years (at least 5 years, I believe) to investigate illegal applicants.
of course, that is independent from your unhappiness that you can't get money from your company.

you need to behave yourself legally and correctly.

OK, it sounds like you are a complete “subcontractor,” with a contract with that company to work 5 days a week (probably paid in hourly/daily wages?). That means you are an independent business owner, who lost two months of work (because your client did not want you to come to work). So that was lost revenues, for which (if that resulted in a revenue of less than 50% in a certain month compared to 2019) you are eligible to get the 1 million yen.

However, as I mentioned in my earlier post, this is meant to help YOU with the reduced revenues, not to help the client. So the company owes you for the other two months’ pay that “you’ve worked.”

Yea, working for free 2 months is not good. Plus who can live for 4 months on 1 million yen..

So you need to get an attorney or whoever to fight if they don’t want to pay up. But you will probably lose that client after the threat lol.

If there is official information out there about the law, they need to get sent that, with the proof that this isn’t a replacement for hours worked...

"paid in hourly/daily wages"

that is NOT self-employer. it means HIRED.

Settle down Ken, I'm not doing anything illegal. I already said I'm a subcontractor and not a full-time employee, so I AM eligible for the 1,000,000 subsidy. All the correct information has been submitted.

AK and Reina, these are my thoughts exactly. That my company is obliged to pay me for the months that I'm working, since the subsidy ISN'T to cover the wages that they owe me.

It's just been difficult to come across any factual information on this.
Thanks for your help.

You say you are a contractor, so you bill them for the hours worked. If you bill them for the hours worked and they do not pay, they are in breach of their contract with you. Pretty simple.

Find a lawyer and sue them for breach of contract. Clearly not a trustworthy company, so no need to keep such customers. This type of company likes to take advantage of contractors, I doubt they will negotiate without lawyers and threat of lawsuit involved.

probably, you worked as same as hired persons. but, apparently the contract is subcontractor. that is probably illegal. I don't think your company is clever enough, otherwise they don't say such kind of idea (no payment instead of 1000000 yen).

by the way, if you are really a subcontractor, you can do nothing about no payment. only you can do is "sue the company". since you are not a hired person, labor law does not help you. police will not help you, because it is private-private business. you just made business with a wrong person (company). case closed.
also, if you are really a subcontractor, when you get hurt in the work, you get nothing, because you have no worker's accident insurance(no benefit for accident and sickness). and, when the company terminates the contract, you have no unemployment benefit (you will lose income immediately). you need to file your income every year by yourself(that is your duty as a subcontractor. the company can't help you.). you can't get tax deduction of 650000 yen as a hired person. (tax becomes high.) you have to take care all those things by yourself. those mean a subcontractor. (subcontractor is an employer, no benefits as hired persons(employee). you need to prepare those benefits by yourself. can you do that, although you don't understand the language well and you don't have enough knowledge ?)

are you sure you are a subcontractor ? funny.

the worst scenario,
when you get hurt and can't work in a certain term, it is possible that they kick out you form their company with no money (that means subcontractor. they may charge penalty, if they want, because they get some damage by your no working. ). when you get hurt physically and irreversibly, they don't care of you. just kick you out. they don't have any legal responsibility to help you.

ken,
Just as comparison, I’m a freelancer, and I get “hired on a contract basis” for short-term assignments and somewhat longer assignments, perform my professional duties, bill them, and get paid (by half-day or full-day rates). Just because I work on a “contract” terms, that does not make me an “employee” (“salaried worker”) of that company depending on the circumstances. I do my own taxes, pay my social security contribution, etc. myself.

In any case, if the OP received the 1 million yen grant, that means he was able to provide a copy of the “kakutei shinkoku sho” (tax filing document) that he did for himself for last year, and his income was likely classified as “business revenue” instead of “salary,” or, at least he was able to evidence to the government that he was an independent business operator. So I don’t see anything wrong with that.

So as an independent business operator, if my client refuses to pay me, yes, I would sue them or take up the issue with a labor union/lawyer that specializes in independent business operators. In the worst case, yes, sue the company.

But in any case, individuals/enterprises who are eligible for this sustainability grant is “independent business operator/owner.” It does not have to be an “employer,” like someone operating their own (physical) store and hire others. People can well be “independent business operator” when they are hired on spot contracts of short or somewhat longer term. I recommend that you do not rush to conclusions about whether someone’s mode of operation is illegal.

今回この持続化給付金を受けられるのは、「個人事業主」です。必ずしも、自分で（店舗などを）経営していて、人を雇う立場であるという意味での「自営業」でなくてもいいのです。単発の契約で雇われていたり、それがある程度長期にわたっても、個人事業主である可能性は十分あります。違法と決めつけない方がいいかと思います。