H25･9･11 at Tokyo District Court

【Judgement】 invalid dismissal

【Company】 Lloyd's Japan

【Category 】 adjustment dismissal

【Reference】Rodo Hanrei 1087-63

【Position/Salary】 Compliance Officer / JPY 9.5M

【Summary】

The basis for the parent company's decision to set a cost reduction rate of 8% and the grounds for determining the amount of reduction for the defendant are not clear. Furthermore, it is insufficient to acknowledge that the failure to achieve cost reductions would lead to the defendant's bankruptcy or a severe management crisis. Therefore, the necessity of personnel reduction cannot be recognized as being of a high degree.

It cannot be established that the duties performed by the 15 employees who were not offered voluntary retirement could not be substituted by the 5 employees who were engaged in the 5 job categories identified as subject to workforce reduction. Therefore, there are no objectively recognizable circumstances that would have precluded the implementation of voluntary retirement as a means of avoiding dismissal, nor can the selection criteria based on engagement in the aforementioned 5 job categories be deemed reasonable.