Risks Related to Licensing, Permits and Legal Revisions in Staffing and Recruitment
First written in FY2016. 10 of 18 entries say "Restated". Latest entry: FY2026.
Recruit Holdings moved to the "Worse" side of this theme in 2020, 4 years before the typical company in this theme (2024).
The whole theme swung hardest in 2020: 2 of 7 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Recruit Staffing Co., Ltd. and Staff Service Co., Ltd., subsidiaries operating in the Japanese staffing business of our Group's domestic human resources business, were subject to an on-site inspection by the Japan Fair Trade Commission on 2 June 2026 on suspicion of violating the Antimonopoly Act.」
Regarding the legal and regulatory risks associated with the staffing business, an on-site inspection by the Japan Fair Trade Commission was in fact conducted based on suspicions of a violation of the Antimonopoly Act. The outcome and the amount of any impact cannot reasonably be estimated at this time. - FY2025WorsenedAnnual report
「In the EU, the European Parliament adopted the AI Act. If it enters into force, certain restrictions will be imposed on the human rights of EU citizens and the handling of their personal data. In the United States, following the change in administration, “The Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence” was withdrawn, and the executive order “REMOVING BARRIERS TO AMERICAN LEADERSHIP IN ARTIFICIAL INTELLIGENCE” was issued by the President.」
The legal and regulatory risks related to human resources have been further detailed, including the EU AI Act, changes in U.S. AI policy following the change in administration, and the growing regulation of AI in employment decisions. - FY2024WorsenedAnnual report
「In the EU, the European Parliament adopted the AI Act on 13 March 2024. If it enters into force, certain restrictions will be imposed on the human rights of EU citizens and the handling of their personal data.」
The legal and regulatory risks related to human resources services have been further detailed, including the EU's adoption of the AI Act and developments in AI-related regulation in the United States. - FY2023WorsenedAnnual report
「There has recently been active debate concerning companies and human rights. If our Group fails to respond appropriately to laws and regulations concerning human rights, this may affect the value of our Group's brand.」
The legal and regulatory risks cover a broad range of compliance matters, including laws and regulations concerning human rights in addition to the licences and permits required for the existing staffing and recruitment businesses. - FY2020WorsenedAnnual report
「In particular, the possibility exists that the costs associated with the staffing business may increase or demand for staffing services may decline as a result of the principle of equal pay for equal work under the amended Act on Ensuring the Proper Operation of Worker Dispatching Undertakings and Improved Working Conditions for Dispatched Workers, which took effect in April 2020.」
The legal and regulatory risks associated with staffing services have been further detailed, including the possibility of higher costs and lower demand under the amended law effective April 2020 and the principle of equal pay for equal work. - FY2020-Q3MaterialisedAnnual report
「Subsequently, on 4 December of the same year, Recruit Co., Ltd. and Recruit Career Co., Ltd. received additional recommendations and guidance from the Personal Information Protection Commission, and on 11 December from the Director-General of the Tokyo Labour Bureau, concerning the above matter.」
In December, additional guidance and other actions by the Tokyo Labour Bureau concerning alleged violations of the Employment Security Act were added to the legal risks related to job information provision and recruitment services. - FY2020-Q2MaterialisedAnnual report
「It was determined and pointed out that the operation of the service violated the Employment Security Act and its guidelines. Recruit Career Co., Ltd. was instructed to promptly implement measures including confirming compliance with the Act and its guidelines across all of its businesses providing recruitment information and employment placement services, including Rikunabi, and taking the necessary corrective and recurrence-prevention measures.」
Legal risks relating to employment placement and the provision of recruitment information materialized. The Tokyo Labour Bureau determined and pointed out that the Employment Security Act had been violated and provided guidance on corrective and recurrence-prevention measures covering all businesses. - FY2020-Q1RestatedAnnual report
「During the first quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
The disclosure states that there have been no material changes regarding the risks relating to licenses and permits and amendments to laws and regulations concerning staffing and recruitment services. - FY2019RestatedAnnual report
「If the Group violates laws or regulations in its domestic or overseas staffing businesses, or falls under a disqualification criterion for staffing operators, it may be subject to cancellation of its license, a business suspension order, a business improvement order or other measures.」
The risks relating to licenses and permits, violations of laws and regulations, amendments to laws and regulations, and administrative sanctions concerning staffing and recruitment services are disclosed again. - FY2019-Q3RestatedAnnual report
「During the nine months ended the third quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
The disclosure states that there have been no material changes regarding the risks relating to licenses and permits and amendments to laws and regulations concerning staffing and recruitment services. - FY2018-Q3RestatedAnnual report
「During the nine months ended the third quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
The disclosure states that there have been no material changes regarding the risks relating to licenses and permits and amendments to laws and regulations concerning staffing and recruitment services. - FY2018-Q2RestatedAnnual report
「During the six months ended the second quarter, there were no material changes in matters described in the quarterly report concerning the business and financial condition that could materially affect investors’ decisions, nor in the risks described under “Business and Other Risks” in the securities report for the previous fiscal year.」
The disclosure states that there have been no material changes regarding the risks relating to licenses and permits and amendments to laws and regulations concerning staffing and recruitment services. - FY2018-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The disclosure states that there have been no material changes regarding the risks relating to licenses and permits and amendments to laws and regulations concerning staffing and recruitment services. - FY2017RestatedAnnual report
「If the Group violates laws or regulations in its domestic or overseas staffing businesses, or falls under a disqualification criterion for staffing operators, it may be subject to cancellation of its license, a business suspension order, a business improvement order or other measures.」
The risks relating to licenses and permits, violations of laws and regulations, amendments to laws and regulations, and administrative sanctions concerning staffing and recruitment services are disclosed again. - FY2017-Q3RestatedAnnual report
「If the Group violates laws or regulations in its domestic or overseas staffing businesses, or falls under a disqualification criterion for staffing operators, it may be subject to cancellation of its license, a business suspension order, a business improvement order or other measures.」
The risks relating to licenses and permits, violations of laws and regulations, amendments to laws and regulations, and administrative sanctions concerning staffing and recruitment services are disclosed again. - FY2017-Q2RestatedAnnual report
「If the Group violates laws or regulations in its domestic or overseas staffing businesses, or falls under a disqualification criterion for staffing operators, it may be subject to cancellation of its license, a business suspension order, a business improvement order or other measures.」
The risks relating to licenses and permits, violations of laws and regulations, and amendments to laws and regulations concerning staffing and recruitment services are disclosed again. - FY2017-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
The disclosure states that there have been no material changes regarding the risks relating to licenses and permits and amendments to laws and regulations concerning staffing and recruitment services. - FY2016First statedAnnual report
「If the Group violates laws or regulations in its domestic or overseas staffing businesses, or falls under a disqualification criterion for staffing operators, it may be subject to cancellation of its license, a business suspension order, a business improvement order or other measures.」
This includes licenses and permits for the staffing business, authorization for the recruitment business, and increased costs resulting from amendments to labor-related laws and regulations.