H25･4･20 at Tokyo Appeal Court

【Judgement】 invalid dismissal

【Company】 Bloomberg L.P.

【Category】 ordinary dismissal (PIP)

【Reference】 Roudou Hanrei 1074-75

【Position/Salary】Business Reporter / JPY8.1M

【Summary】

The employment rules stipulate that a ground for dismissal exists in cases where an employee's ability or efficiency in fulfilling their own job responsibilities is deemed to have significantly declined and there is no prospect for improvement. Regarding whether there are objectively reasonable grounds for dismissal, one must examine the contents of the job performance capabilities required by the employment contract. This assessment should determine whether the decline in such job performance capabilities is sufficiently severe to negate any expectation of continuing the employment contract, taking into account various factors, including the likelihood of future improvement.

Even when considering each ground for dismissal individually, the employee has demonstrated a willingness to improve during PIP, and it cannot be established that there is objectively reasonable justification for the dismissal. Furthermore, upon a comprehensive evaluation of all the grounds for dismissal, there is insufficient evidence to support the conclusion that the employee's decline in job performance capabilities is of such significance that it precludes the continuation of the employment contract, when measured against the job performance standards required of the employee.