An investigation led by Weekly Bunshun has revealed that Universal Studios Japan has reportedly entered into contracts with performers in its shows and parades that are suspected of being illegal.

Universal Studios Japan

Universal Studios Japan is celebrating its 25th anniversary this year and is commemorating the milestone with entertainment, including a special parade.

The investigation involved the outsourcing contracts that the company operating USJ has with the entertainers portraying characters. The contract states the following:

“If Party B (Note: Performer) unilaterally terminates this agreement or the services for any reason whatsoever, Party B agrees to notify Party A (Note: Management Company) in writing at least 30 days in advance and, upon Party A’s request, pay Party A 500,000 yen in damages as a penalty for breach of contract.”

One performer notes that, “Many of our performers earn around 200,000 yen a month, so compensation that’s twice that amount is far too high. To be honest, I want to quit USJ, but I can’t because I can’t afford the exorbitant compensation.”

If the person is actually an employee, then this may violate Article 16 of the Labor Standards Act. Even if they are a freelancer with a service contract, unilaterally imposing exorbitant penalties may violate the Antimonopoly Act, the public order and morals under the Civil Code, and even the new Freelance Act that will come into effect in November 2024.

Weekly Bunshun reached out to Universal Studios Japan and received the following reply:

“We will refrain from commenting on the specifics of individual contract clauses as they relate to our company’s operations. However, regarding inquiries about contract termination during the contract period, we do not apply a uniform or formal approach, but rather handle each case on a case-by-case basis, taking into account the specific circumstances.”

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