Japan’s 711 convenience store apologizes for miscalculation of overtime pay

On December 10th Japanese media reported that 711 convenience store company president Yukio Yongheldion held a press conference to apologize for a long period of underpayment of overtime pay for clerks, which it is understood was due to an error in the 711’s wage process. The specific situation of less overtime pay is not yet known, Japanese media reported that the earliest may have been from the 1970s, counting almost 40 years are miscalculated, but before 2012 less overtime pay has been unable to be verified, President Yong song Wenyan said at a press conference before the number of employees and the amount of less overtime pay “unclear”, There is no data.

Wage procedures go wrong and pay $490 million in overtime, Japan's 711 convenience store apologizes


It can be verified that from March 2012 to November 2019, the under-counted overtime pay amounted to at least 490 million yen, or about 32 million yuan, involving 8,129 stores and 30,405 employees, of which the most under-counted employees had about 2.8 million yen in overtime losses, or about 180,000 yuan.

According to 711 officials, the accident was mainly due to errors in the payroll calculation process at their headquarters, although media reports said that Japan’s Labor Benchmarking Agency had found 711 under-paid overtime problems as early as 2001, when the company did not correct it, and then changed the overtime subsidy formula there were some errors. This has made the case for underpayment of overtime.

As of May 2019, 711 has 68,607 stores in 16 countries around the world, including Japan, Thailand, the United States, China and South Korea. Japan has 2,965 stores, the highest number of stores, thailand is next with 11,400, and China ranks fifth with 8,415 stores.

In Japan, the cost of employees at 711 franchises is the responsibility of the owner, but payroll and remittances are the responsibility of the head office.

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