Small and Medium Enterprise AgencyFY 2014 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 while strictly addressing violations of the Act. It also has been striving to ensure fair subcontracting practices by providing various programs, including formulating and disseminating guidelines for business transactions involving subcontractors, providing free consultations with attorneys at Aid Offices for Subcontractors, and preventing violations of the Act through various types of workshops and other programs.
The SMEA hereby releases the FY 2014 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 FY 2014, the SMEA conducted a written survey of approximately 240,000 companies, targeting both main subcontracting enterprises and subcontractors. Based on the survey results, on-site inspections and other actions were performed at 1,115 main subcontracting enterprises which were suspected of violating the Act, and orders for improvement were issued to 999 companies among them. The SMEA specifically 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 services at the Aid Offices for Subcontractors
Aid Offices for Subcontractors in 48 locations in various prefectures across Japan responded to 5,473 requests for advice from counselors and accepted 681 cases for free consultations with attorneys as well as 9 petitions for conciliation under Alternative Dispute Resolution (ADR).
3. Promoting fair subcontracting practices
The SMEA has been promoting fair subcontracting practices through certain activities, such as requesting that the main subcontracting enterprises and trade associations concerned improve their business transactions with their subcontractors, holding workshops and other programs on the Act, designating November as a month for promoting fair subcontracting practices, and disseminating and developing guidelines for business transactions involving subcontractors.
4. FY 2014 results of the enforcement of the Act released by the Fair Trade Commission
The Fair Trade Commission has released the FY 2014 results of the enforcement of the Act on the following website:
http://www.jftc.go.jp/houdou/pressrelease/h27/jun/150603_1.html (in Japanese)
For further details, see the Japanese language press release.
August 18, 2015
Division in Charge
Fair Trade Division, Business Environment Department, Small and Medium Enterprise Agency