[2][3] The original aim of this law was to regulate the extra-legal system of subcontractor personnel dispatching that had become commonplace in the automobile and electronics industries.
[8] Haken-giri (派遣切り) is the Japanese term for layoffs of temporary employees (haken) dispatched to companies by staffing agencies.
Estimates of the number of layoffs between October 2008 and March 2009 range from 131,000, according to the Ministry of Health, Labour and Welfare,[9] to 400,000, according to staffing industry associations.
But the widespread public perception that large corporations had failed to live up to their social responsibilities led to calls for reform of the labor laws.
In February, the Tokyo Bar Association issued a 10-point statement calling for reforms such as restoration of the "white list" of skilled occupations, an upper limit on margins levied by staffing agencies, prohibition of dispatching within corporate groups, and stricter penalties for early layoffs.
Wages must also be compared to the government mandated average pay table (which has varying rates based on job type, seniority and location) and then against all financial and non-financial benefits offered by the dispatch agency.