“Marriages are made in heaven, employer-employee relationships are made by contracts” – and work contracts, including in Japan, can be annulled for various reasons and by pressure of circumstances.
Apart from personal incompatibility between employer and employee, the main reasons for corporate
annulment of employee contracts are due to takeovers, insolvencies, failed mergers, restructuring, relocation of employment, sales difficulties, and rationalizations. Moreover, culturally-determined and differing perceptions regarding adequacy of professional training, qualifications, and performance of local
management staff can also be reasons for employee departure.
To avoid lengthy legal disputes and the creation of a fair parting process, ‘Outplacement’ is increasingly used as part of a creative and fair severance solution.