Japan's Fair Trade Commission issued a recommendation to Kawai Musical Instruments on Monday for violating the Freelance Workers Act by underpaying freelance teachers [1, 2].
This case marks the first time the regulator has issued such a recommendation under the Freelance Workers Act. It signals a stricter enforcement of labor protections for independent contractors who lack the bargaining power of full-time employees.
The commission found that Kawai engaged in a practice known as "buying down," which involves paying fees significantly lower than market rates [1, 3]. Specifically, the company paid freelance music teachers ¥500 [1] for each trial lesson they conducted. This payment structure was applied to 28 freelance teachers [2] over a period of approximately six months beginning in November 2025 [2].
Beyond the low pay, the commission identified further administrative failures. Approximately 100 teachers were not provided with necessary information regarding their payment dates [2]. These combined actions led the regulatory body to determine that the company had failed to provide appropriate remuneration to its freelance workforce [2].
In a statement, the Fair Trade Commission said it requested that Kawai Musical Instruments take steps to prevent a recurrence of these practices [2]. The recommendation requires the company to ensure that freelance workers are paid fair compensation for their services.
A spokesperson for Kawai Musical Instruments said the company will move forward with efforts to prevent the issue from happening again [1].
“The commission found that setting the trial-lesson fee at ¥500 violated the Freelance Workers Act.”
The action against Kawai Musical Instruments establishes a legal precedent for the Freelance Workers Act in Japan. By penalizing 'buying down,' the Fair Trade Commission is asserting that the law applies not just to contract transparency, but to the actual fairness of the wage. This likely puts other Japanese companies utilizing freelance networks on notice that systemic underpayment of independent contractors will now be subject to national regulatory oversight.
