Ministry of Economy, Trade and Industry
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FY2013 Results of Crackdowns under the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors

The Small and Medium Enterprise Agency (SMEA) has been strictly enforcing the Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (hereinafter referred to as the “Act”) through on-site inspections of main subcontracting enterprises and other actions, and strictly addressing violations of the Act. It also has been striving to ensure fair subcontracting practices by providing various programs, including formulating and diffusing the guidelines for business transactions involving subcontractors, providing free consulting services by attorneys at Aid Offices for Subcontractors, and providing certain programs, such as preventing violations of the Act through various types of workshops.

The SMEA hereby releases the FY2013 summarized results of these activities, including enforcement under the Act, services at Aid Offices for Subcontractors, and workshops on the Act.

1. Results of the enforcement of the Act

In FY2013, the SMEA conducted a written survey of about 260,000 companies, targeting both main subcontracting enterprises and subcontractors. Based on the survey results, orders for improvement were issued to 10,274 main subcontracting enterprises which were suspected of violating the Act, up by 823 cases from the previous year. Among these companies, the SMEA reported one serious violator to the Fair Trade Commission in order to request that appropriate measures be taken with regard to the company.

2. Results of the Aid Offices for Subcontractors

The Aid Offices for Subcontractors at 48 locations in respective prefectures across Japan responded to 4,982 requests for advice from counselors and accepted 711 cases for free consultations by attorneys as well as 33 petitions for conciliation under the Alternative Dispute Resolution (ADR).

3. Promoting fair subcontracting practices

The SMEA is promoting fair subcontracting practices through certain activities, such as requesting the main subcontracting enterprises or trade associations concerned to improve business transactions with their subcontractors, holding workshops and other programs on the Act, designating November 2013 as a month for promoting fair subcontracting practices, and diffusing and developing the guideline for business transactions involving subcontractors.

4. FY2013 results of the enforced Act which were released by the Fair Trade Commission

The Fair Trade Commission has released the FY2013 results of the enforced Act on the following website:
http://www.jftc.go.jp/houdou/pressrelease/h26/jun/140604.htmlExternal Site Link (in Japanese))

For further details, see the Japanese language press release.

Release Date

July 2, 2014

Division in Charge

Fair Trade Division, Business Environment Department, Small and Medium Enterprise Agency

Ministry of Economy, Trade and Industry
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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