Japanese labour market has been experiencing transformation and this is expected to continue in the next years. Though globalization has contributed highly to this trend, the change in education levels, aging of the working population and entry of more women into the labour force has led to the noticeable changes. Another thing that could have led to appreciation of these changes is the increasing number of foreigners who have joined the labour force in Japan bringing in the different ideas and operations from the countries they come from. Research on Industrial organizations in the past has shown that Japan was seen as operating on the Traditional Industrial Relations Systems; firms provided job security for its employees, paid wages according to the seniority status and had enterprises operating in unionism. However, the Japanese Industrial trends are more characterised with contemporary Employment Relations. Due to globalization Japan has been forced to adapt to the changes in order to fit into the global village.