‘Unprecedented’ 5,000 People with Disabilities Quit or Fired from Workplaces in Japan, 329 Workplaces Closed Due to Cuts in Compensation Payments

From Kyodo News via Yahoo! Japan

August 13 2024

TOKYO – A nationwide survey of local governments by Kyodo News on the 13th revealed that 329 workplaces where disabled people could gain skills and knowledge while working were closed nationwide between March and July of this year, resulting in at least 5,000 disabled people who worked there being fired or quitting. The highest number of disabled people ever fired in a year was about 4,000. Although this includes retirees, this is an unprecedented number in just five months.

The main reason for this is that in February the government announced a reduction in compensation for unprofitable establishments, with the reduction implemented in April, in order to encourage business improvement at employment establishments that rely on public funds.

The establishments that are closing one after another are “Type A Continuing Employment Support Establishments.” They enter into employment contracts with disabled people, pay them above the minimum wage, and provide productive activities and vocational training. There are approximately 4,600 of these establishments nationwide, employing over 80,000 people, mostly people with mental and intellectual disabilities.

The survey was carried out in July in 129 municipalities, including prefectures, designated cities, and core cities. Responses were received from all of them.

The number of people fired or retired, calculated from the number of users at the time the establishments submitted their closure notices to their respective municipalities, came to 4,995. Of the 329 establishments that closed, just over 40% were transitioned to Type B establishments, to which the minimum wage does not apply.