The Subcontract Act is vigorously enforced in Japan with the aim of protecting small and medium sized enterprises. Ensuring compliance with the law in day-to-day business is very important, since companies quite often fail to recognize illegality due to the very formalistic definitions provided in the Subcontract Act. We advise our clients in drafting effective compliance manuals and provide practical compliance training based on our considerable experience in compliance and corporate regulatory defense cases, and our expertise and knowledge of the content and enforcement trend of the Subcontract Act.
When facing a potential violation of the Subcontract Act, we advise our clients on appropriately following up with their subcontractors, and build a strong case for our clients by articulating the economic efficiencies and lack of maliciousness of the conduct at issue to effectively negotiate with the authority. We also handle voluntary reporting with the authority to reduce and avoid formal sanctions when a violation is confirmed.