David Blecken
Nov 29, 2017

Dentsu to pay staff millions for two years' worth of overtime

The company will compensate employees next month for unpaid overtime logged as personal training.

Dentsu's Tokyo headquarters
Dentsu's Tokyo headquarters

Dentsu is to pay a total of 2.4 billion yen (US$22 million) to employees for overtime worked between March 2015 and March 2017.

Shusaku Kannan, a spokesperson for Dentsu, told Campaign that the payment was in recognition of hours staff had logged as “self-training at the office”.

“Based on the guidance of the authorities in Japan, we have decided to pay overtime for self-study or other reasons that helped generate ideas, if it was work-related,” Kannan said.

The move follows Dentsu’s conviction in October of violating labour practice regulations by fostering a culture of extreme overwork. The company was fined a nominal 500,000 yen ($4,500) fine at the time of the ruling, which a number of media reports criticised as being too low.

Dentsu, along with several other agencies in Japan, is in the process of implementing reforms that it hopes will improve its working environment. The agency is a member of the Japan Advertising Agencies Association, which is working with three other industry committees to develop guidelines for a better style of working in Japanese advertising.

Full archive of stories on Dentsu's overwork controversy

 

Source:
Campaign Japan

Related Articles

Just Published

10 hours ago

Netflix doubles ad revenue in 2024, targets another ...

The streaming platform is eying a growing piece of the $25 billion spend on connected TV, with geographic expansion of its ads supported tier.

11 hours ago

Following Trump's lead is a mistake. It's time for ...

Just like you wouldn’t plan a picnic without considering the weather; agencies that try to plan for the future without considering climate change are risking disaster, says Clean Creatives' Duncan Meisel.

14 hours ago

GroupM axes global agency CEO roles in major ...

EssenceMediacom, Mindshare and Wavemaker brands will still operate globally and local market CEOs will retain their roles.

22 hours ago

Trump signs order to delay TikTok ban for 75 days

With the new US president asking for a 50% stake in TikTok, advertisers should be cautious of the evolving landscape and not put their ‘eggs into one social basket’.