Compensation Revision Notice (給与改定通知書)
Documents any structural change to compensation: raises, decreases, allowance changes, shifts between fixed and variable components, or whole-package restructuring. Includes the employee acknowledgement block needed when changes are unfavorable.
Document generator
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The bilingual Compensation Revision Notice generator (Japanese / English preview, inline editing, PDF export) is in development. In the meantime, the explainer below covers when to issue this notice, what to include, and the legal basis. The structure mirrors how the live generator will ask for input.
Official sources
This template is built on the following primary Japanese government sources. Open each link to verify the underlying rule against the issuing authority.
- e-Gov 法令検索 - Labor Contract Act, Articles 9 & 10 Article 9 prohibits unilateral disadvantageous changes to working conditions; Article 10 sets the reasonableness test for changes via amended work rules.
- e-Gov 法令検索 - Labor Standards Act, Article 15 Statutory basis for written notice of working conditions at the time of hire and at any subsequent change.
- Japan Pension Service (日本年金機構) - Occasional revision (随時改定) Compensation changes that move the standard monthly remuneration by 2+ grades trigger an occasional revision filing.
Reference
What the Compensation Revision Notice (給与改定通知書) is
A compensation revision notice (給与改定通知書) is the formal document for any compensation change beyond a clean pay raise. Where the salary increase notice is the simple instrument for upward base-pay changes, the compensation revision notice handles the broader cases: allowance restructuring, decreases, splits between fixed and variable components, role-based banding changes, and post-merger / post-reorg compensation alignment.
When to use
When to issue this notice
- Restructuring the compensation package (e.g., shifting from high base + low bonus to low base + high bonus)
- Changing or removing allowances (housing, family, position-specific allowances)
- Compensation decrease for performance, business conditions, or role change
- Annual fixed-overtime allowance (固定残業代) revision
- Compensation alignment after a merger or reorganization
Mandatory items
What to include in the notice
- Current compensation structure (base, allowances, fixed-overtime, bonuses)
- New compensation structure (line by line)
- Net change at each level (annualized impact)
- Effective date
- Reason for the revision (organizational, performance, business conditions)
- Reference to work-rules basis (Article 9 / 10 LCA reasonableness if employer-initiated)
- Explicit employee acknowledgement block (mandatory for unfavorable changes)
- Note on social-insurance recalculation if applicable
Legal basis
Legal background and constraints
Compensation changes that are unfavorable to the employee require employee consent (Article 9 LCA) or a properly amended set of work rules that meets the reasonableness test (Article 10 LCA). A unilateral compensation cut without either is generally invalid. The revision notice is the document where the employer's basis and the employee's consent (or acknowledgement of work-rules-based change) are recorded; without it, downward changes are difficult to defend.
Frequently asked
Common questions about the Compensation Revision Notice
Can the employer cut salary unilaterally?
Generally no. Article 9 LCA requires employee consent for unfavorable changes. Article 10 LCA permits unfavorable changes via amended work rules only if the change passes a reasonableness test (necessity, proportionality, comparison with industry norms, alternatives considered). Either route requires a clear paper trail; the revision notice plus signed acknowledgement is the standard form.
Is acknowledgement signature legally equivalent to consent?
It depends on what the document says. "Acknowledged receipt" is not consent. "I agree to the changes set out above and confirm my consent to them" is consent. For unfavorable changes, the latter wording is required, plus a meaningful explanation of the change before signing.
Can compensation be revised without changing the contract?
If the change is favorable, yes. If the change is unfavorable, no, the labor contract effectively changes whether or not you call it a contract amendment. The revision notice is the document that records the change to the contract terms. A separate amended employment contract is not strictly required if the notice contains the relevant items.
Does a fixed-overtime allowance (固定残業代) revision require special handling?
Yes. Fixed-overtime structure must be transparent: the breakdown between regular pay and fixed-overtime portion, the equivalent overtime hours, and what happens if actual overtime exceeds the fixed amount, must all be clear. The revision notice should restate these elements explicitly to preserve the structure's validity.
What if the employee refuses to sign?
If the change is favorable, you can proceed; the employer's notice is sufficient. If unfavorable, you cannot proceed unilaterally; either get consent through dialogue, fall back on a properly amended set of work rules (Article 10 LCA), or do not implement. Forcing through an unfavorable change without consent is generally invalid.
Important. This template is provided for general planning purposes only and is not a substitute for professional advice. Japanese employment law is complex and case-specific. Before issuing this notice in any non-routine situation, consult a Certified Social Insurance and Labor Consultant (社会保険労務士) or a qualified labor lawyer (弁護士).