This article was written as of January 2024.

1. Introduction

On June 16, 2023, the "Act on the Promotion of Citizens’ Understanding of Diversity of Sexual Orientation and Gender Identity" (hereinafter referred to as "the Act") was enacted by the Diet and promulgated and enforced soon thereafter on June 23.

Japan’s legal system for protecting its LGBTQ minorities is considered insufficient compared to other developed countries. For this reason, LGBTQ persons and support groups have pushed for legislation that prohibits discrimination against persons who self-identify as LGBTQ. In 2023, in the run-up to the G7 Summit which was chaired by Japan, the situation regarding LGBTQ persons in Japan received attention from other countries, prompting accelerated discussions on improving legislation. However, mainly due to opposition from conservative lawmakers, this Act, which was passed as a result, does not stipulate the prohibition of discrimination, but only promotes citizens’ understanding of the diversity of sexual orientation and gender identity.

2. Overview of the Act

This Act, with the exception of the supplementary provisions, consists of a total of 12 articles. There is no provision for penalties for violation of the Act. The main contents are as follows.

2.1. Basic Principles (related to Article 3)

Measures to promote understanding must be implemented based on the principle that all citizens, regardless of their sexual orientation or gender identity, should be respected as irreplaceable individuals who equally enjoy fundamental human rights, and with the recognition that there should be no unjust discrimination on the grounds of sexual orientation or gender identity.

2.2. Roles of the State and local governments, Formulation of the Basic Plan by the Government, etc. (related to Articles 4, 5, 7, 8, 9 and 10)

The State and local governments shall endeavor to formulate and implement measures for promoting understanding and to take necessary measures (e.g., steady dissemination of knowledge and development of consultation systems) in light of the progress made in research promoted by the State regarding the diversity of sexual orientation and gender identity.

The Government must publicize the status of its implementation of the measures that it takes to promote understanding once a year. Furthermore, the Government must formulate a "Basic Plan" for the promotion of understanding, must review the Plan approximately every three years, and must make changes to the Plan if deemed necessary.

2.3. Efforts of Employers and Establishers of Schools (related to Articles 6 and 10)

Employers must endeavor to promote their workers’ understanding of the relevant issues by carrying out dissemination and enlightenment activities, developing an appropriate working environment, securing consultation opportunities, and to cooperate with the measures taken by the State and local governments. Employers must also endeavor to take necessary measures such as providing their workers with information to promote understanding of the relevant issues.

Establishers of schools (excluding kindergarten and the kindergarten sections of special-needs schools; the same hereinafter) must endeavor to promote their students’ understanding of the relevant issues, with the cooperation of families, local residents and other relevant persons, by carrying out education or enlightenment activities, developing a positive educational environment, securing consultation opportunities, and to cooperate with the measures taken by the State and local governments. Establishers of schools must also endeavor to take necessary measures such as developing consultation mechanisms regarding the educational environment for their students.

2.4. Attention (related to Article 12)

In implementing the measures provided for in this Act, attention must be paid to ensure that all citizens, regardless of their sexual orientation or gender identity, can live in peace. The Government will formulate the "Guidelines" necessary to ensure the smooth implementation of these policies.

3. Outlook

This Act does not directly provide for the prohibition of discriminatory treatment and basically does not directly affect the rights and obligations of private persons. Some members of LGBTQ communities and support groups have expressed dismay over the fact that this Act was designed to promote understanding rather than prohibiting discrimination.

However, this Act is nonetheless significant in that it provides that the State and local governments, employers and establishers of schools must make efforts to promote understanding. While there are many points to be monitored, including the content of the Basic Plan and Guidelines to be formulated by the Government, it is hoped that the purpose of this Act will not ultimately be misconstrued and that activities to promote understanding will be further expanded.

Key Contacts

Koichi Saito

Partner

Tokyo Office

Koichi Saito is a partner in employee/executive incentive practice group. He is a leading lawyer in this field in Japan. He advises on all aspects of share/cash-based incentive plans. He advises on selection of types of awards, design of the incentive plan, due diligence on legal and tax issues in Japan as well as other jurisdictions, implementation of the incentive plan, and operation of the plan. He advises Japanese listed and private companies on issues relating to incentive plans generally, in M&A situations and on IPO. He advises global corporations on extending their incentive plans into Japan.

He also specializes in business and human rights and other aspects of ESG law. He advises Japanese and multinational corporations, governments and international organizations on preparing policies and their implementation, including risk assessment, human rights due diligence, mitigation of human rights risks, and engagement with stakeholders. He has served as Operating Committee member of Business and Human Rights Lawyers Network Japan since 2019, and he is also a member of Advisory and Mediation Panel of Japan Center for Engagement and Remedy on Business and Human Rights (JaCER).

Trending News: Japan Legal Update

Authors Key Contacts	Naohiro Nomura Koichi Saito
Issue	Mar 13, 2024
Practice Areas	Sustainability