Overtime upper-limit regulation in construction (the 36 Agreement and holiday practice after the 2024 application)

In short: From 1 April 2024, the penalty-backed overtime upper-limit regulation applies to construction just as it does to other businesses. The principle is 45 hours a month and 360 hours a year (Article 36, paragraph 4 of the Labor Standards Act); even with a special-clause agreement the yearly cap is 720 hours, and the 45-hour monthly limit may be exceeded in only 6 months a year (paragraph 5). In addition, the combined total of overtime and holiday work must be under 100 hours in a single month and 80 hours or less on a multi-month average (paragraph 6, items 2 and 3). Only for "recovery and reconstruction businesses in times of disaster" do those 100-hour and 80-hour parts not apply for the time being (Article 139, paragraph 1). The special-clause 36 Agreement, working-hour management, and work rules are for a Shakai Hoken Roumushi; construction business permits and the business-condition review are for a Gyoseishoshi; tax handling of premium wages is for a tax accountant — each a separate business entity, contracted separately.

"How many hours of overtime are we allowed now that the grace period ended in 2024?" and "do disaster-recovery sites have the same cap?" — these are consultations from owners and HR staff of construction businesses now that the upper-limit regulation is in full force. This page is for HR staff of companies that run construction (civil-engineering) businesses, and it sorts out the overtime cap and the treatment of holidays from April 2024 in line with the statute. The final judgment on whether a particular 36 Agreement is lawful, and the response to litigation after a corrective recommendation, are outside the scope of this article.

How did the overtime cap for construction change from April 2024?

The penalty-backed overtime upper-limit regulation came into force under the Work Style Reform Act (Act No. 71 of 2018) on 1 April 2019 for large companies and 1 April 2020 for small and medium companies. Construction was given a five-year grace period at that time, and part of the upper-limit regulation did not apply until 31 March 2024 (Article 139, paragraph 2 of the Labor Standards Act). That grace period has ended, and from 1 April 2024 the same upper-limit regulation as for other businesses applies to construction as well.

• The principle is overtime of 45 hours a month and 360 hours a year (Article 36, paragraph 4 of the Labor Standards Act)
• Where a one-year variable working-hour system with a target period exceeding three months is used, it becomes 42 hours a month and 320 hours a year (same paragraph)
• You may not have workers do overtime without a 36 Agreement, or beyond the range set in the agreement

From here on, construction manages the special clause and the treatment of holiday work within the same framework as other businesses. The framework of overtime itself is also sorted out in how far a Shakai Hoken Roumushi can be asked about the 36 Agreement and overtime.

How many hours can a special-clause 36 Agreement reach in construction?

When you temporarily need to exceed the principle cap, you conclude a special-clause 36 Agreement. Even with a special clause, however, the following absolute limits cannot be exceeded. These are legal limits that must be kept regardless of the content of the agreement.

Item	Limit	Basis
Overtime (year)	720 hours or less	Art. 36, para. 5
Months the 45-hour monthly limit may be exceeded	Up to 6 months a year	Art. 36, para. 5
Overtime + holiday work (single month)	Under 100 hours	Art. 36, para. 6, item 2
Overtime + holiday work (2-6 month average)	80 hours or less each	Art. 36, para. 6, item 3

The point to watch here is that the single-month "under 100 hours" and the multi-month-average "80 hours or less" are judged by adding in "holiday work," not overtime alone (Article 36, paragraph 6, items 2 and 3). The 720-hour yearly figure, on the other hand, is calculated from overtime only and does not include holiday work. When a tight schedule increases holiday work, you can reach the combined 100-hour or 80-hour limit first even if there is room in overtime. The management of long working hours is also covered, as a common theme with other long-hour industries, in the 2024 problem in the trucking industry.

How far is the disaster-recovery and reconstruction exception allowed?

Only for construction that is a "recovery and reconstruction business in times of disaster," the provisions on the combined total of overtime and holiday work being under 100 hours in a single month and 80 hours or less on a multi-month average do not apply for the time being (Article 139, paragraph 1 of the Labor Standards Act). It is an exception to respond to urgent work of recovery and reconstruction from a disaster.

• What does not apply is limited to the parts of Article 36, paragraph 6, item 2 (under 100 hours in a single month) and item 3 (80 hours or less on a multi-month average)
• On the other hand, the 720-hour yearly cap and the limit that the 45-hour monthly limit may be exceeded in only 6 months a year do apply to recovery and reconstruction businesses too (Article 36, paragraph 5 is not among the exclusions)
• This exception reaches a case of engaging in a recovery and reconstruction business, and does not reach ordinary construction work

In other words, even on a recovery and reconstruction site, the frame of "720 hours a year, the 45-hour limit exceeded in up to 6 months" must be kept; what comes off is only the single-month 100-hour and multi-month-average 80-hour parts. Whether your own work falls under this exception needs to be confirmed in line with the reality of the work.

How do you design labor management for the squeeze between a two-day weekend and the schedule?

Since holiday work goes into the combined single-month 100-hour and multi-month-average 80-hour totals, how many holidays you can secure directly affects compliance with the upper-limit regulation. For labor management, you combine the operation of the special clause of the 36 Agreement, the grasp of working hours, and the design of a variable working-hour system.

• Record overtime and holiday work separately each day, so that the monthly total and the average of the most recent several months can be tracked at the same time
• On sites with a large gap between busy and slack seasons, a one-year variable working-hour system that allocates prescribed working hours is an option. How to choose a variable working-hour system is sorted out in how to choose a variable working-hour system and flextime
• Because the number of times the special clause of the 36 Agreement can be invoked (6 times a year) is capped, plan which months to allocate it to by working back from the schedule

Which design suits your own schedule and staffing is assembled individually, taking into account the reality of working hours at each site. Applying the system is examined together with putting work rules and agreements in order.

Have a question about your situation?

Tell us about your social insurance, payroll or employment enquiry.

Chat on LINEContact us

When the cap is exceeded, what happens to the company and the site agent?

Where workers are made to work beyond the absolute limits of Article 36, paragraph 6 (under 100 hours in a single month, 80 hours or less on a multi-month average), that violation becomes subject to a penalty. Under Article 119, item 1 of the Labor Standards Act, imprisonment of up to 6 months or a fine of up to 300,000 yen is set. For a corporation, under the dual-liability provision of Article 121, a fine may be imposed on the corporation in addition to the actor.

• Regardless of the hours set in the 36 Agreement, if the actual combined overtime and holiday work reaches 100 hours or more in a single month, or if any of the 2-to-6-month averages exceeds 80 hours, it can be a violation of Article 36, paragraph 6
• A "user (employer)" under the Labor Standards Act includes not only the business operator but also everyone who acts for the business operator on matters concerning workers (Article 10 of the Labor Standards Act). Depending on the reality of authority, a person in a position to manage working hours at the site may also be held responsible as a "user"
• Treating someone as a manager or supervisor with a title in name only and not paying premium wages creates a separate problem. This point is sorted out in the "manager in name only" and premium wages

Who bears how much responsibility in an individual case is a judgment in line with authority and reality. The final finding is made by the Labor Standards Inspection Office.

What can 四葉社会保険労務士事務所 do?

四葉社会保険労務士事務所, in Kohinata, Bunkyo City, handles drafting and filing the special-clause 36 Agreement for construction, building a mechanism to manage working hours that combines overtime and holiday work, putting work rules in order such as a one-year variable working-hour system, and labor design toward correcting long working hours. Construction business permits and the business-condition review are handled by a Gyoseishoshi, the tax handling of premium wages by a tax accountant, and the response to litigation after a corrective recommendation by an attorney — each a separate business entity from this office, contracted separately. This office handles the working-hour-management and labor side. Consultation is free. For fees, see the fee schedule; for frequently asked questions, see the FAQ.

Frequently asked questions

Q. Did the construction overtime cap become the same as for ordinary companies from April 2024?
A. Yes. The five-year grace period ended on 31 March 2024, and from 1 April 2024 the same upper-limit regulation as for other businesses applies. The principle is 45 hours a month and 360 hours a year (Article 36, paragraph 4); even with a special clause it is 720 hours a year with the 45-hour limit exceeded in up to 6 months, and the combined overtime and holiday work is under 100 hours in a single month and 80 hours or less on a multi-month average (paragraph 6, items 2 and 3).

Q. On a disaster-recovery site, may we make workers work over 100 hours?
A. Only for a "recovery and reconstruction business in times of disaster," the provisions on under 100 hours in a single month and 80 hours or less on a multi-month average do not apply for the time being (Article 139, paragraph 1). However, the 720-hour yearly cap and the limit of exceeding 45 hours in only 6 months a year do apply to recovery and reconstruction businesses too. Whether your own work falls under this exception is confirmed in line with the reality of the work.

Q. Does holiday work count toward the 720-hour yearly total?
A. The 720 hours a year is calculated from overtime only and does not include holiday work (Article 36, paragraph 5). On the other hand, the single-month "under 100 hours" and multi-month-average "80 hours or less" are judged by combining overtime and holiday work (paragraph 6, items 2 and 3). Because increasing holiday work can reach these combined limits first, recording the two separately is important.

Q. If the cap is exceeded, is the company always punished?
A. Where workers are made to work beyond the limits of Article 36, paragraph 6, it can be subject to the penalty of Article 119, item 1 (imprisonment of up to 6 months or a fine of up to 300,000 yen). For a corporation there is the dual-liability provision of Article 121. Whether a penalty is actually imposed, and who bears responsibility, is a judgment in line with authority and reality, and the final finding is made by the Labor Standards Inspection Office.

The basis for this article

• Labor Standards Act (Act No. 49 of 1947) Article 36, paragraph 4 = the overtime limit is 45 hours a month and 360 hours a year (42 hours a month and 320 hours a year for a one-year variable system with a target period over three months) / paragraph 5 = the special clause; within a range not exceeding 720 hours a year, the 45-hour monthly limit may be exceeded in up to 6 months a year / paragraph 6, item 2 = combined overtime and holiday work under 100 hours in a single month / item 3 = the average over each 2-to-6-month span is 80 hours or less each
• Labor Standards Act Article 139, paragraph 1 = for construction (limited to recovery and reconstruction businesses in times of disaster), Article 36, paragraph 6, items 2 and 3 do not apply for the time being / Article 139, paragraph 2 = the application grace until 31 March 2024 (transitional measure)
• The penalty-backed overtime upper-limit regulation under the Work Style Reform Act (Act No. 71 of 2018). Applied to large companies on 1 April 2019 and small and medium companies on 1 April 2020; construction applied from 1 April 2024 after a five-year grace period
• Labor Standards Act Article 119, item 1 = imprisonment of up to 6 months or a fine of up to 300,000 yen for a violation of Article 36, paragraph 6 / Article 121 = the dual-liability provision / Article 10 = the definition of "user" (the business operator, a person managing the business, or anyone who acts for the business operator on matters concerning that business's workers)
• Provisions are confirmed via the e-Gov Law Search (referred as of 7 October 2026)

This article does not conclude on the lawfulness of an individual 36 Agreement, or on whether a particular work is a recovery and reconstruction business in times of disaster. Drafting and filing the special clause of the 36 Agreement, building a working-hour-management mechanism, and putting work rules in order are the work of a Shakai Hoken Roumushi. Construction business permits and the business-condition review are the work of a Gyoseishoshi, tax handling of premium wages that of a tax accountant, and the litigation response that of an attorney (each a separate business entity from this office, contracted separately). For fees when consulting 四葉社会保険労務士事務所, see the fee schedule; for frequently asked questions, see the FAQ.

This article is general information. A judgment on individual circumstances is made by a qualified professional after a consultation. Written by Joji Uramatsu (Shakai Hoken Roumushi, Gyoseishoshi, Registered Real Estate Transaction Specialist).