H24･12･13 at Tokyo District Court

【Judgement】 lawful dismissal

【Company】 Principle One

【Category】 RIF

【Reference】 Rodo Hanrei 1071-86

【Position/Salary】 Office Manager / JPY 5.2M

【Summary】

The Defendant was facing a severe management crisis at the time of the termination in question, and was in such a critical situation where the entire company's management could have fallen into bankruptcy unless immediate personnel reduction was implemented; therefore, it should be deemed that there was a compelling necessity.

The defendant, being a small-scale company with only a few employees, faced significant difficulties in securing a workplace for the plaintiff within the organization. It is acknowledged that the defendant mandated the plaintiff to remain on standby at home between the date the prior judgment became final and the date of termination, exempting the plaintiff from work obligations while paying the full salary during that period. Furthermore, the defendant made efforts to find and introduce alternative employment opportunities in consideration of the wishes of both the plaintiff and the union. Therefore, it should be assessed that the defendant exerted all possible efforts to avoid termination.

The business decision to retain only the employees essential for continued operation and to eliminate the office manager position, outsourcing its duties, cannot be considered unreasonable. Therefore, the selection of the plaintiff, who held the office manager position, as the target for termination was the only viable option.