Toyota has decided to halt the construction of new factories for the next three years in a shift from its previous policy of building new plants almost annually, reports said Sunday.
The company, which hopes to regain top spot in the global auto market, will concentrate its capital investment on existing factories, the Nikkei business daily said.
The new policy will basically shelve through the end of the 2015 fiscal year all plans for building new factories other than those already announced, the paper said.
The company will officially announce the decision in a new management plan to be released in coming months, Jiji Press said, adding that Toyota wants to increase efficiency and cut costs.
Japan's largest automaker now has around 50 overseas plants and just under 30 domestic ones.
Toyota said in late December that it sold an estimated 9.7 million vehicles in 2012, which could put it ahead of General Motors and Volkswagen as the world's biggest automaker.
The company expects to sell about 9.91m vehicles this year.
* AFP
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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