Tokyo Electric Power Co. failed to pay about 1.4 billion yen in overtime to about 2,800 of its employees for two years to June, according to sources. A labor standards inspection office told the company to correct the practice Tuesday, and TEPCO agreed to pay the workers the money Monday, the sources added.
Nearly 90 percent of TEPCO's workforce at its headquarters in Chiyoda Ward, Tokyo, were owed overtime pay, the sources said. The unpaid work amounts to about 147 hours, or about 510,000 yen, per employee. According to TEPCO, its employees claim overtime by entering hours on their computers.
The practice of summer and winter bonuses was developed so companies could defer worker's compensation but this is taking the deferring to a new level.