Minutes of the 8th Labor Conditions Subcommittee Meeting
Overview
At the 8th meeting on September 14, 2026, Recof Data reported on M&A market trends and the use of company splits, while the secretariat and Committee Member Ikeda explained labor laws on corporate reorganizations in other countries. Members discussed worker protection during reorganizations, transfer of employment relationships, and information provision and consultation. In 2025, there were 5,115 M&A deals and 1,336 intra-group reorganizations; company splits were used in 161 and 308 cases, respectively.
Key points
- Recof Data reported on M&A market trends and the use of company splits.
- The secretariat and Committee Member Ikeda explained labor laws in the EU, Germany, France, the United Kingdom, and the United States.
- Members discussed worker protection and transfer of employment relationships during reorganizations, as well as approaches to advance information provision and consultation.
Overview
The agenda for the 8th meeting on September 14, 2026, included “Hearing from an M&A research company” and “Labor laws in other countries concerning corporate reorganizations.” Recof Data presented its report, followed by explanations of labor laws in various countries from the secretariat and Committee Member Ikeda.
Details
According to Recof Data's tally, company splits alone are not classified as M&A; they are positioned as preparatory actions preceding business transfers or company sales, or as corporate reorganization methods. In 2025, acquisitions and business transfers totaled 2,875 cases (56.2%). M&A deals had been on an upward trend since 2012, and business succession M&A exceeded 1,000 cases in 2025, the report said.
The Japan Institute for Labour Policy and Training (JILPT) survey overview covered labor laws in the EU, Germany, France, and the United Kingdom, organizing matters such as the treatment of employment contracts in reorganizations. Committee Member Ikeda explained the United States, which was outside the survey's scope. The systems in each country were presented, including the transfer of employment contracts when businesses move, information provision and consultation with worker representatives, and the treatment of working conditions and dismissals.
Members raised as issues differences in protection depending on the reorganization method, employment transfer rules including business transfers, workers' right to object, and information provision and consultation by both the transferring and receiving entities. Labor representatives called for protection rules to be established. Employer representatives proposed clarifying the information to be provided and its timing through guidelines or Q&As, taking account of differences among national systems.