Changes to the discretionary work system

At a glance

• Companies who wish to implement a professional discretionary work system on or after 1 April 2024 will have to consider new changes.
• From 1 April 2024, unless a company obtains individual consent from subject employees for the discretionary work system, it will no longer be able to apply the current system to them.

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If a company intends to implement a professional discretionary work system on or after the 1 April 2024, the company will need to:

• provide procedures in the labour-management agreement for obtaining the subject employees’ consent and allow for withdrawal of such consent; and
• obtain individual consent for the application of the discretionary work system from the subject employee themselves.

Under current law, when a company implements a professional discretionary work system, it is sufficient for the company to conclude a labour-management agreement with an employee representing a majority of all employees (who are not necessarily subject to the discretionary work system), and it is not necessary to obtain individual consent from the employees who are subject to the discretionary work system.

However, on or after 1 April 2024, unless a company obtains individual consent from subject employees for the discretionary work system, it will no longer be able to apply the system to them. Also, even once the subject employees have consented to the system’s application, they may withdraw their consent without any reason and discontinue the application of the discretionary work system at any time.