Disability Employment Japan Welfare

Disability welfare service company to close seven offices in Yamagata prefecture

It has been revealed that a disability welfare service company with its headquarters in Shinjo City has indicated its intention to close its seven Type A continuous employment support offices in the prefecture at the end of March next year. According to the company, it plans to close seven Type A continuous employment support offices, where disabled people work under employment contracts, in Shinjo City, Murayama City, and other locations at the end of March next year, and lay off over 200 employees. The company explained the reason for closing the facilities as follows: "The Ministry of Health, Labor and Welfare has indicated its intention to abolish the annual income requirement for social insurance premiums. If this is abolished, we estimate that our annual burden will increase by approximately 68 million yen. It will be difficult to generate profits that correspond to this."

From NHK

February 13 2025

YAMAGATA – It has been revealed that a disability welfare service company with its headquarters in Shinjo City has indicated its intention to close its seven Type A continuous employment support offices in the prefecture at the end of March next year.

The company says it will make efforts to secure new employment for disabled people who have employment contracts.

The company that has indicated its intention to close its offices is the disability welfare service company “Union Social System” with its headquarters in Shinjo City.

According to the company, it plans to close seven Type A continuous employment support offices, where disabled people work under employment contracts, in Shinjo City, Murayama City, and other locations at the end of March next year, and lay off over 200 employees.

The company explained the reason for closing the facilities as follows: “The Ministry of Health, Labor and Welfare has indicated its intention to abolish the annual income requirement for social insurance premiums. If this is abolished, we estimate that our annual burden will increase by approximately 68 million yen. It will be difficult to generate profits that correspond to this.”

According to the prefecture, there are 31 Type A employment support facilities in the prefecture, but the simultaneous closure of seven facilities and the dismissal of disabled people marks the largest number of times to date.

The company has informed its employees of the closure plan, and will support them in finding new employment at other Type A facilities if they wish.

Union Social System said, “The fundamental cause is the company’s lack of ability, and we are very sorry. We will work to secure new employment for the employees.”

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