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The Small and Medium Enterprise Agency FY2016 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 has also been striving to ensure fair subcontracting practices by providing a variety of 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 2016 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 2016, the SMEA conducted a written survey of approximately 300,000 companies, targeting both main subcontracting enterprises and subcontractors. Based on the survey results, on-site inspections and other actions were performed at 1,006 main subcontracting enterprises which were suspected of violating the Act, and orders for improvement were issued to 900 of those companies.

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 6,583 requests for advice from counselors and accepted 627 cases for free consultations with attorneys as well as 21 petitions for conciliation under Alternative Dispute Resolution (ADR).

3. Promoting fair subcontracting practices

The SMEA has taken specific actions to promote fair subcontracting practices, 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 developing and disseminating guidelines for business transactions involving subcontractors.

4. FY 2016 results of the enforcement of the Act released by the Fair Trade Commission

The Fair Trade Commission has released the FY 2016 results of the enforcement of the Act on the following website:
URL: Japan Fair Trade CommissionExternal Site Link

Appendix

Release date

June 1, 2017

Division in Charge

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

Related website

Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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