7-Eleven Japan has been underpaying staff for up to 50 years

1 min readUpdated May 24, 2025Dec 19, 201911:13 PM

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Investigators have discovered 7-Eleven Japan to have been underpaying staff since the 1970s, according to a Nikkei report.

The review uncovered inaccuracies in the formula used by the retailer to calculate overtime wages for part-time staff since the business was established. The error resulted in staff earning less than mandated by Japan’s Labour Standards Act. All staff payment calculations are performed by the 7-Eleven Japan’s head office, which guides payment levels for franchise operators.

The company, which was first alerted to the problem in October, has responded by promising to compensate around 30,000 affected staff for underpayments going back as far as the company has kept its archives since March 2012. Staff seeking compensation for underpayments dating from before that time can be paid if they have preserved records.

7-Eleven Japan could face a bill for compensatory payments of ¥490 million (US$4.51 million).

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What this means

7-Eleven Japan's systemic payroll error, dating back to the 1970s, pressures a brand already facing intense scrutiny on ethical practices. Compensating 30,000 staff for ¥490 million (US$4.51 million) is a necessary step, yet the reputational damage and operational cost could be significant. This incident contrasts sharply with other brands' strategic expansions in Asia, such as Tiffany & Co.'s new cafe in Singapore, which focus on consumer experience. The retailer's central control over payroll for its franchisees further implicates the head office in this long-standing failure. Rivals like Panpuri, expanding into Japan, will likely use this misstep. The key thing to watch next is 7-Eleven's next quarterly earnings report to assess the financial impact.

Minjun Park · Retail News Asia newsroom

Questions & Answers

How long have staff been underpaid by 7-Eleven Japan?

Investigators found that staff have been underpaid since the 1970s. The error relates to the formula used to calculate overtime wages for part-time staff since the business was established.

What is the cause of the underpayments?

The underpayments are due to inaccuracies in the formula used by the retailer to calculate overtime wages for part-time staff. This resulted in staff earning less than mandated by Japan’s Labour Standards Act.

How much compensation could 7-Eleven Japan face?

7-Eleven Japan could face a compensation bill of ¥490 million, which is approximately US$4.51 million. This is for underpayments going back as far as the company's archives since March 2012.

When was 7-Eleven Japan first aware of this issue?

The company was first alerted to the problem in October. Following this, they promised to compensate affected staff for the underpayments, covering records back to March 2012.

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