Imperial Ordinance No. 706 of October 16th of 1939 (14th Year of Syōwa)
Article 1.
Among the orders to be issued regarding corporations by virtue of Article 11 of the National General Mobilization Law (inclusive of the cases falling within the purview of Imperial Ordinance 317 of 1938, same context following), those concerning remunerations of the salaried employees of corporations shall be governed by the provisions of the present ordinance.
Article 2.
The present ordinance shall apply to those corporations coming under any of the categories mentioned below:
1. A corporation whose capital (that is to say, the total amount of investment, total value of stocks, or the combination of both investment and stocks, or the total amount of the funds) is 200,000 yen and upwards. 2. All other corporations designated by Cabinet Ordinance.
Article 3.
A salaried employee within the meaning of the present ordinance is a person coming under any of the categories mentioned below:
1. Those who are engaged in the business of a corporation as its executives (hereinafter to be referred to as officers). 2. Those who are engaged in the business of a corporation or otherwise so designated by Cabinet Ordinance, or those who are employed by a corporation (hereinafter to be referred to as members of the staff) with the exception of those coming under the preceding category; and the workers receiving wages prescribed by Article 3 of the Imperial Ordinance Concerning Temporary Measures Pertaining to Wages.
Article 4.
A remuneration within the meaning of the present ordinance is any salary, allowance, bonus, entertainment allowance, secret-service fund, or whatever is paid, irrespective of its designation, by a corporation to its employees in return for their services in money or in kind, or by way of any other material benefit.
Article 5.
With respect to remunerations to be paid at stated periods in a fixed sum or quantity, or fixed ratio, and such other remunerations as are designated by Cabinet Ordinance (hereinafter to be referred to as salaries and allowances), a corporation shall not increase nor pay such remunerations after date of promulgation of this ordinance without abiding by the rules concerning salaries and allowances (that is to say, rules prescribing the criteria of kinds, ranks, amounts, quantities, rates, payment, and increase or decrease of salaries and allowances, and also the criteria of initial salaries, same context following) dated the 18th of September of 1939 (hereinafter to be referred to as the designated date); or without abiding by rules concerning salaries and allowances as sanctioned by the competent Minister in accordance with Article 7 of the present ordinance; or by rules concerning salaries and allowances altered by permission of the competent Minister in accordance with Article 8; but this shall not apply in cases where sanction to deviate therefrom is granted by the competent Minister.
Article 6.
The corporation shall submit a report to the competent Minister on the rules governing salaries and allowances in force at the designated date, in accordance with Article 31 of the National General Mobilization Law, as prescribed by Cabinet Ordinance.
The rules governing salaries and allowances to be reported in accordance with the preceding paragraph shall be those which can be proved to have been customary or such private rules as existed at the designated date, or those approved by the competent Minister in the case where such proofs can not be furnished.
Article 7.
A corporation which had no rules governing salaries and allowances at the designated date or a corporation which was established after the designated date, shall make its rules governing salaries and allowances and receive the sanction of the competent Minister thereto for their application.
Article 8.
A corporation shall, when it intends to alter its rules governing salaries and allowances, first apply to the competent Minister for sanction to effect the intended alterations.
Article 9.
When a corporation intends to pay remunerations other than salaries and allowances to its officers and the members of its staff at stated periods (hereinafter to be referred to as bonuses) and when previously no such bonuses were paid, it shall obtain the sanction of the competent Minister to effect such payment; but this shall not apply in cases where the total amounts of such bonuses do not exceed the limit fixed by Cabinet Ordinance.
Excepting the cases mentioned in the preceding paragraph, a corporation shall not, whenever bonuses are given, give its officers and the members of its staff the bonuses the total whereof is greater than the amount shown in the following particulars; this, however, shall not apply in cases where the total amount of bonuses does not exceed the limit fixed by Cabinet Ordinance, or where sanction of the competent Minister has otherwise been obtained for the payment of such bonuses.
1. As for the bonuses to officers, they shall be the total amounts of bonuses paid at the corresponding period of the previous year; but where the number of officers has been increased over that of the corresponding period of the previous year, the total amounts of bonuses shall include the addition prescribed by Cabinet Ordinance. 2. As for the bonuses to members of the staff, they shall be the amounts resulting from multiplying the rate (hereinafter to be referred to as the bonus rate) obtainable by dividing the total amounts of bonuses paid at the corresponding period of the previous year by the monthly averages of the total amounts of the standard salaries of the members of the staff for the term covered by the bonuses, to the monthly averages of the total amounts of the standard salaries of the members of the staff (that is to say, the fixed amounts which are to be the standard of salaries and allowances, same context following) paid in the term covered by the bonuses.
The method of calculating the term covered by the bonus mentioned in Section 2 of the preceding paragraph shall be prescribed by Cabinet Ordinance.
Article 10.
A corporation shall submit a report to the competent Minister, in accordance with Article 31 of the National General Mobilization Law, with respect to the period of paying bonuses and the kind of bonuses paid during the one year preceding the enforcement of the present ordinance, together with the total of the bonuses paid at each period, the number of officers, and the bonus rate for the same period of time.
Article 11.
When a corporation intends to pay extra remunerations (other than those prescribed by Cabinet Ordinance, same context following) to all or a greater part of its officers and/or the members of its staff simultaneously, it shall first obtain the sanction of the competent Minister to effect such payment; but this shall not apply in cases where the total amount of such remunerations does not exceed the limit fixed by Cabinet Ordinance.
When a corporation has paid extra remunerations to its salaried employees, it shall report the same to the competent Minister in accordance with Article 31 of the National General Mobilization Law, as prescribed by Cabinet Ordinance.
Article 12.
When corporations have come to an agreement between themselves concerning the salaries and allowances of mariners and obtained the sanction thereto of the competent Minister, that which is agreed upon shall be deemed to be the rules governing the mariners' salaries and allowances at the designated date in respect of the application of Article 5 of the present ordinance.
Article 13.
When deemed necessary as regards a corporation which is not a party to the agreement mentioned in the preceding article, the competent Minister may, on the recommendation of the Commission on Mariners' Wages, consider the said agreement, in respect of the application of the provisions of Article 5, to be the rules governing the mariners' salaries and allowances of the said corporation at the designated date.
Article 14.
In the case of the two preceding Articles 12 and 13, the report
prescribed in Article 6 is deemed to have been made, or the sanction required in Article 7 or 8 to have been obtained.
Article 15.
The corporation may not pay any remuneration, however designated, to its salaried employees with the intention of evading the restrictions prescribed in Articles 5, 9 and 11.
Article 16.
The competent Minister may, in respect to the corporation's salaries and allowances for its employees, call for the report, or dispatch the officials concerned to the offices, factories, ships, or other places of work, to inspect and examine the business conditions, account-books, documents, and other matters pertaining to the corporation's affairs, by virtue of the provisions of Article 31 of the National General Mobilization Law.
Every official so dispatched for inspection and examination in accordance with the provisions of the preceding paragraph, shall be provided with a certificate or a badge in proof of his status.
Article 17.
For the purpose of making recommendations to the competent Minister on matters of importance pertaining to the enforcement of the present ordinance as referred to for deliberation, the Commission for Investigation of Temporary Measures Concerning Remunerations of Salaried Employees of Corporations shall be organized.
The regulations governing the Commission for Investigation of Temporary Measures Concerning Remunerations of Salaried Employees of Corporations shall be made separately.
Article 18.
The present ordinance shall not be prejudicial to the application of Article 7 of the Imperial Ordinance Pertaining to Corporation Dividends and Capital Accommodation.
Article 19.
The present ordinance shall not apply to remunerations adjudged by a court of law.
Article 20.
The competent Minister mentioned in the present ordinance shall
be the Minister of Finance, with the exception of each of the following cases where it is otherwise prescribed:
1. In the case of a corporation established in accordance with a special law, the Minister who has jurisdiction over and supervises such corporation; 2. In the case of a corporation engaged exclusively in an enterprise governed by the Exchange Law, the Gas Industry Law, the Insurance Business Law, the Automobile Manufacturing Law, Machine Tool Manufacturing Law, the Iron and Steel Industry Law, the Light Metal Manufacturing Law, the Petroleum Industry Law, the Artificial Petroleum Manufacturing Law, or Imperial Ordinance No. 9 of 1926, or Article 3 of the Gold Production Law, the Minister of Commerce and Industry; 3. In the case of a corporation engaged exclusively in an enterprise governed by the Electrical Industry Law or the Aeroplane Manufacturing Law, the Minister of Communications; 4. In the case of a corporation engaged exclusively in an enterprise governed by the Local Railway Law, the Track Law, or the Automobile Transportation Business Law, the Minister of Communications; 5. In the case of a corporation part of whose business is governed by laws or ordinances mentioned in connection with the foregoing three cases, the minister having jurisdiction over such part of its business and the Minister of Finance; 6. In the case of that which concerns mariners, the Minister of Communications, regardless of the provisions governing each of the foregoing cases.
The Minister of Finance shall consult with the Ministers concerned on matters of importance involved in the enforcement of Articles 5 to 9 and 11 of the present ordinance.
The competent Minister other than the Minister of Finance shall consult with the Minister of Finance and other Ministers concerned on matters of importance involved in the enforcement of Articles 5 to 9 and Articles 11 to 13 of the present ordinance.
Article 21.
The Minister of Finance may cause the chief of a district revenue office or the director of revenue superintendence bureau to conduct part of the business of the enforcement of the present ordinance in respect to corporations other than those mentioned in Sections 1, 2, 3, and 4 of Paragraph 1 of the preceding article.
As for the mariners, the competent Minister mentioned in the body of Article 5 and Articles 6 to 8 and Articles 12 and 13 shall be the Minister of Communications, or the director of the communications bureau, as ordained by the Minister of Communications; the competent Minister mentioned in the proviso to Article 5 shall be the director of the communications bureau or the administrative authorities having jurisdiction over maritime affairs; the competent Minister mentioned in Articles 9, 10 and 11 shall be the director of the communications bureau; and the competent Minister mentioned in Article 16 shall be either the Minister of Communications, the director of the communications bureau, or the administrative authorities having supervision over maritime affairs.
The Minister of Finance may cause the director of the revenue superintendence bureau or the chief of a district revenue office to call for the reports prescribed in Article 16; or may cause the director of the revenue superintendence bureau, or the chief of a district revenue office or his deputy to conduct the inspection and examination as prescribed in the said article.
Article 22.
Matters necessary in the enforcement of Articles 5 to 11 and Article 16 shall be prescribed by Cabinet Ordinance.
Article 23.
In respect to mariners, the Cabinet Ordinance mentioned in the present ordinance shall be the ordinance of the Communications Department.
Article 24.
The competent Minister mentioned in Articles 5 to 13 and Article 16 shall be the Governor-General of Tyōsen in the case of Tyōsen, the Governor-General of Taiwan in the case of Taiwan, the Governor of the Government of Karahuto in the case of Karahuto, and the Governor of the Government of the South Sea Islands in the case of the South Sea Islands; but the above does not apply in the case of the Hypothec Bank of Japan, the Hokkaidō Development Bank, the Bank of Tyōsen, the Bank of Taiwan, and such banks as have their places of business in Tyōsen, Taiwan or Karahuto, that are governed by the Bank Law or the Savings-bank Law, and the South Sea Islands Development Company.
The Cabinet Ordinance mentioned in Articles 2, 3, 5, 6, 9, 11 and 22 shall be the ordinance of the Government-General in the case of
Tyōsen and Taiwan, and the Government ordinance in the case of Karahuto and the South Sea Islands.
In the cases of Tyōsen, Taiwan, Karahuto and the South Sea Islands, the provisions pertaining to the Commission on Mariners' Wages and the provisions of Article 17 shall not apply.
Article 25.
The Governor-General of Tyōsen may, in accordance with that which he prescribes, cause the director of the revenue superintendence bureau or the chief of a district revenue office to conduct part of the business in connection with the enforcement of the present ordinance.
The Governor-General of Tyōsen may cause the director of revenue superintendence burean [sic] or the chief of a district revenue office to call for the reports prescribed in Article 16, or cause the director of the revenue superintendence bureau or the chief of a district revenue office or his deputy to conduct the inspection and examination as prescribed in the said article.
The Governor-General of Taiwan may cause the governor of a syū or tyō to call for the reports prescribed in Article 16, or cause the governor of a syū or tyō or his deputy to conduct the inspection and examination prescribed in the said article.
The governor of a syū may delegate to the revenue sub-office part of the business entrusted to him in accordance with the provisions of the preceding paragraph.
Supplementary Clauses:
The present ordinance shall be enforced as from October 20th of 1939 (14th year of Syōwa), provided the same shall be enforced only as from October 27th of 1939 (14th year of Syōwa) in the case of Tyōsen, Taiwan, Karahuto and the South Sea Islands.
The present ordinance shall remain in force until October 19th of 1940 (15th year of Syōwa), provided that, as for the application of penal clauses relating to such acts as committed prior to the said date, the same shall be effective even after the said date.
(For reference)
Extracts from Law No. 55 as Promulgated on April 1st of 1938 (13th year of Syōwa); the National General Mobilization Law:
Article 11.
When necessary in effecting national general mobilization, the Government may, as prescribed by Imperial Ordinance, restrict or prohibit the establishment of corporations, the increase of their capital, their amalgamation, the change of their objects, the floatation of loans, and/or the payment of a call on shares further than the second call; or may issue necessary orders regarding the disposal of their profits, the effecting of redemption and other matters of accounts; or may issue necessary orders regarding the operation of capital to banks, trust companies, insurance companies, and/or those designated by Imperial Ordinance.
Imperial Ordinance No. 9 promulgated on March 6th of 1926 is the matter which concerns joint-stock corporations of Japan established with the object of producing petroleum or coal in North Karahuto by virtue of the Convention Concerning Japanese Rights and Interests based on the Protocol (B) of the Treaty Pertaining to the Basic Rules of the Relations between Japan and the Union of Soviet Socialist Republics.