Creating a Fulfilling Workplace

The TOTO Group is working to create a workplace where all employees feel assured when working and can demonstrate their abilities while balancing work and family life. By revising working hours and promoting diversity in work styles, the Group aims to improve work-life balance and enhance productivity and fulfillment at work. In accordance with the TOTO Group Compliance Policy, the Group adheres to labor laws, regulations, and social rules in each country and region and is working to curb long working hours.

The TOTO Group encourages each employee to take on new challenges by offering various work styles that allow for flexible use of time and place. In June 2025, it introduced the special paid leave system for a childcare purpose (childcare leave), which is available to all employees regardless of gender. Additionally, the Group is working to create an environment in which employees can balance life events and careers by enhancing our programs to support diverse work styles and more.

The TOTO Group has established various programs to ensure that diverse human resources can work with a peace of mind and fully demonstrate their abilities. These programs include promoting the use of paid leave and supporting employees in balancing work with childcare, nursing care and medical treatment. The Group also introduces the number of employees who used these programs and specific examples via the intranet and company newsletters, which provides opportunities for each employee to reflect on their own work style and work-life balance. It is particularly working to foster a corporate culture in which male employees feel comfortable using childcare-related programs. In recognition of these efforts, the TOTO Group received the Excellence Award at the sixth Work-Life Balance Awards organized by the Japan Productivity Center.

The TOTO Group offers a variety of support programs to ensure that all employees can continue working with peace of mind while balancing work and life events. It aims to create a workplace where every employee can work in a way that suits them, by creating a flexible work environment that can adapt to life’s various events, including marriage, childbirth, childcare , nursing care and　medical treatment.

Main Support Programs

・Work Location Selection Program
This program allows employees to temporarily choose to work in a preferred location for such reasons as marriage, childbirth, childcare or nursing care. 

・Leave of Absence to Accompany a Spouse on an Overseas Transfer
Employees may take a leave of absence of up to five years to accompany a spouse on an overseas transfer. 

・Human Resources Registration Program (Re-employment Support)
Job listings are sent to former employees who were forced to leave their jobs because of unavoidable circumstances, such as life events, if they want them.
Once the reason for resignation has been resolved and the former employee expresses a desire to return to work, the company provides support to help their re-employment. 

･Support for Balancing Work with Childcare and Nursing Care
In addition to reduced work hours and care leave, the company allows employees to work from home for reasons related to childcare and nursing care, helping them balance work and family responsibilities. 

･Support for Balancing Work with Medical Treatment
The company offers support through flexible work arrangements, such as working from home, to help employees continue working while receiving necessary medical treatment.

･Work-Life Balance Support: Flexible Working Hours with No Core Time
Employees can utilize a flexible working hours system with no core time due to childcare, elder care, or medical treatment, enabling a more flexible work style.
The company strives to create an environment in which every employee can work in a way that suits them, allowing them to flexibly choose their work locations and hours based on their lifestyle and individual needs. It will continue to strive to create a workplace where employees can keep taking on new challenges, by embracing diverse work styles. 

The TOTO Group has established the following supportive environment and systems to help Group employees in Japan balance work with child-rearing. Some of these even exceed legal requirements. Guidebooks are prepared to help employees understand these systems. They are posted on the internal intranet so that relevant employees and their supervisors can refer to them.

･Maternity Leave

Eligibility: All employees who give birth
Before childbirth: Available from six weeks (14 weeks in case of multiple births) prior to (and including) the expected delivery date
After childbirth: Available for eight weeks after delivery, in principle
In both cases, maternity allowance can be claimed through the TOTO Health Insurance Association.

･Childcare Leave
Employees can take childcare leave until their child reaches the age of two, exceeding the legal requirement, regardless of the reason.
Employees will not be paid during childcare leave. However, childcare leave compensation is provided through the Employment Insurance System.
Additionally, childcare leave compensation is paid by the TOTO Group Welfare Mutual Aid Association.

The Group is committed to creating an environment that supports employees on childcare leave to return to work with peace of mind, as outlined below:
･Renting computers to employees upon request so that they can access company information and the details of various programs.
･Holding online preparation seminars for employees returning to work
･Facilitating a smooth transition by conducting interviews between employees and their supervisors before and after their return to work
･Holding a training session tailored to the specific work content and circumstances of each workplace, typically within two weeks of an employee’s return from childcare leave, to support a smooth return to work 

･Childcare Leave after Childbirth (Paternity Leave)
This is a separate system from the childcare leave above. Fathers can take up to four weeks of childcare leave within eight weeks after the birth of their child. If they apply for all four weeks at the beginning, they can split the leave into two periods for the same child. Employees will not be paid during this childcare leave. However, childcare leave compensation will be provided through the Employment Insurance System.

･Special Leaves for Childbirth and Childcare (Celebration/Condolence Leave and Maternity/Childcare Support Leave)

Employees are entitled to take up to two days of special paid leave (Celebration/Condolence Leave) when their spouse gives birth.
Starting in June 2025, employees can take special paid leave for childcare purposes when their child is two years old or younger (up to a total of five days, excluding Saturdays and Sundays). This also applies to employees with less than one year of service, who are not eligible for the above childcare leave. Nine consecutive days of leave can be taken. Both male and female employees are eligible for this leave to care for an expectant mother during her pregnancy (Maternity/Childcare Support Leave).

･Reduced Work Hours for Childcare
Japanese law requires employers to introduce a reduced work hour system for employees with children under the age of three. At the TOTO Group Japan, employees with children in elementary school (up to sixth grade) or younger may choose reduced work hours determined by each workplace, upon their request and subject to workplace approval. Employees can advance or delay their start and end times of work, or reduce their work hours by 30 minutes per day to half a day.

･Allowance for Employees Raising Children
TOTO Group’s employees in Japan who are raising children are eligible for an allowance to help cover nursery school fees, babysitting costs, and educational expenses (childcare/educational cost allowance option of the cafeteria plan*)
*A welfare program in which the company gives its employees points. Employees can choose from a variety of services within their allotted point limit.

･Welfare Facilities for Breastfeeding
TOTO Group’s workplaces in Japan provide private resting rooms and spaces for breastfeeding and expressing milk, where user’s privacy is protected. Female employees raising children under the age of one are entitled to take two 30-minute childcare breaks per day, upon request, in addition to their regular breaks, regardless of their employment status. These breaks may be used for breastfeeding or expressing milk

･Nursing Care Leave for Children
This is a leave that employees with children in elementary school (up to sixth grade) can take in one-hour increments for the following purposes: caring for an injured or ill child, taking a child to a vaccination or health checkup, caring for a child whose class or school is closed because of an infectious disease, and attending a child’s entrance or graduation ceremony. These conditions exceed the legal requirements of Japan. Employees with one child can take up to five days (40 hours) per year and employees with two or more children can take up to 10 days (80 hours) per year.

･Working at Desired Locations for Childcare (Area Limited Employment System)
To ensure that employee’s careers are not interrupted, TOTO employees in Japan who are subject to nationwide transfers and have children in elementary school (up to sixth grade) or younger can request to work at their desired location when, for example, their spouse is transferred within Japan.

･Papa-Mama and Grandchildren Leave (Carrying Over Unused Annual Leave)
A paid leave acquisition system that allows employees with children or grandchildren to use annual paid leave (accumulated leave) that has lapsed due to prescription for the purpose of housework or childcare.

The TOTO Group encourages male employees to take an active role in housework and childcare to better understand the diversity of work styles, appreciate the need for work-life balance, and make them aware of the need to help support working women.

The paid child care leave system, Papa-Mama and Grandchildren Leave System, is a support system that encourages employees with children and grandchildren to acquire leaves for household and child care and helps employees who are not willing to take child care leave due to a decline in revenue and who have terminated their child care leave period to actively participate in household and child care.

Also, we have established a dedicated site on the company Intranet and introduced related systems and guidebook on balancing work and childcare and role models to promote active leave acquisition and raise awareness. We have set a target of 85% of male employees taking childcare leave by FY2026, and are also working to ensure that those who wish to take childcare leave can do so with peace of mind.

These efforts were highly recognized, and we were certified by the Ministry of Health, Labor and Welfare as a company supporting child care and acquired the next-generation certification mark Kurumin in 2012 and a higher standard Platinum Kurumin in 2018 as we achieved a 30% Paternity and Maternity Leave acquisition rate.

This system includes caring for not only caring for employee’s own family members but also caring for spouse’s family members.

･Consecutive Leave for Nursing Care
Depending on their workplace, employees are entitled to take up to a total of 365 days of leave per family member requiring nursing care, which exceeds the legal requirement of Japan. Leave can be taken in increments of one day.

･Reduced Work Hours for Nursing Care
Employees caring for family members in need of nursing care may, upon their request, choose reduced work hours, advanced or delayed start and end times of work, or flexible work hours for up to two periods within three years from the date they start using the system for each family member.

･Allowance for Employees Needing Nursing Care
Employees who or whose family member receive nursing care services are eligible for an allowance to help cover expenses (nursing care cost allowance option of the cafeteria plan*).

*A welfare program in which the company gives its employees points. Employees can choose from a variety of services within their allotted point limit.

･Leave of Absence for Overseas Relocation of Spouse
To help employees continue their career, this system allows them to take up to three years of leave of absence to accompany a spouse who has been transferred overseas. Employees can use this system multiple times if they have worked for more than one year after returning to Japan. (Employees without children are also eligible.)

･Special Leave for Volunteering
This is a system that encourages employees to volunteer by offering five days of paid leave per year for volunteer activities.

･Area Limited Employment System
To support a work style that accommodates life events such as childbearing, childrearing, nursing care or marriage, the system allows employees to work temporarily for three years or more at their desired location.

Variety of systems to support diverse working methods

The TOTO Group considers creating a work environment where every employee can continue to work with peace of mind while maintaining physical and mental health to be a key management issue. It is committed to curving long working hours and ensuring proper working hour management. 

The TOTO Group in Japan has concluded labor agreements (36 Agreements) regarding overtime and work on rest days in accordance with Article 36 of the Labor Standards Act. Even in special cases where it is temporarily necessary to work beyond the limit, the maximum number of overtime hours per month is determined as 80, and situation checks and corrective actions (C.A.) are implemented at monthly management meetings.

We track and manage working hours more accurately by cross-referencing objective records, such as IC data on employee ID cards and computer logs, with self-reported data from employees. In addition to establishing a system that allows employees and their supervisors to check daily attendance, we send email alerts to employees who have not reported their attendance. We also send alerts to employees and their supervisors when the actual working hours are approaching the maximum limit set in the 36 Agreements. Additionally, we regularly monitor actual working hours to prevent and address excessive working hours. We pay appropriate overtime in accordance with applicable laws, regulations and company rules. In some cases, we pay overtime that exceeds the statutory standards. To enable diverse work styles, we are also establishing flexible work arrangements, including a flex-time system and the option to take annual leave in hourly increments. 

The TOTO Group encourages its employees to take annual paid leave to help them maintain their physical and mental health and achieve a work-life balance. The Group grants annual paid leave in accordance with applicable laws and regulations of each country or region, as well as company systems. Employees do not experience any disadvantages in terms of wages, benefits or any other conditions when taking such leave. 

The Group supports diverse and flexible work styles by allowing employees to take leave in half-day or hourly increments. The TOTO Group in Japan aims to create a workplace where everyone can stay healthy, feel energized and be satisfied with their work. To this end, it is promoting a corporate culture in which employees can take paid leave when they wish. The Group encourages employees to take 100% of their individually set target number of days for their paid leave use. 

Please note that the target number is determined through a careful discussion between the employee and their supervisor by taking the employee’s personal circumstances into account. To promote the planned use of paid leave throughout the year, top management sets an example and implements “Check and Action” at monthly executive meetings. 

To help every employee continue to work with peace of mind, the TOTO Group complies with the minimum wage requirements established by laws and regulations of each country and region. It also strives to ensure fair treatment and proper wage levels. The Group determines wages by comprehensively considering the levels of market and cost of living, as well as the business environment, in each region with the aim of providing compensation that contributes to employees’ financial stability and job satisfaction. It also promotes human resources management based on fair evaluations and treatment, without making unreasonable distinctions based on gender, nationality, age, employment status or other factors.

The TOTO Group established a benefit program that allows each employee to feel secure and energized to take on challenges and continue working. We will continue to improve the program so that employees can have a satisfying work-life balance.

･Employee shareholding
A system to support employees to build assets over the medium to long term by helping them purchase the company’s shares on a monthly basis through an employee shareholding association.

･Company housing
Company housing and dormitories are provided to employees who need them for work-related reasons, such as relocation, in accordance with the company rule.

･Payment of commuting expenses
If an employee commutes to work by public transportation, bicycle, car or motorcycle, the company will pay the transportation and commuting expenses in accordance with the company rule.

･Recreational　　
Facilities are provided to maintain and promote the health of employees and their families and for their recreation.

･Cafeteria Plan
Employees can choose from a wide range of services, including childcare, nursing care, personal development, and travel, to receive subsidies that meet their individual needs. 

"General Employer Action Plan" based on the Act on Advancement of Measures to Support the Development of the Next Generation and the Act on Promotion of Women's Participation and Advancement in the Workplace

The TOTO Group is working to improve the working environment and systems so that each employee can work with a sense of job satisfaction. As part of this, we are implementing various measures to further promote the participation of female employees and to support them in balancing work with childcare, elderly care, and their own medical treatment.

Under the "TOTO Group Corporate Code of Conduct," which outlines the fundamental stance of all employees working within the TOTO Group, we strive to build sound labor-management relations through sincere dialogue and consultation with employees, labor unions, and employee representatives.

･Respect for freedom of association and the right to collective bargaining
The TOTO Group is a member of the United Nations Global Compact and supports its 10 principles of human rights, labor, environment, and anti-corruption. It also respects freedom of association and the right to collective bargaining as means of realizing labor-management consultations regarding working conditions and other related matters.

Important Decisions Regarding Employment: When making important decisions regarding employment, the Group complies with applicable laws and regulations of each country and region, as well as labor-management agreements, and engages in dialogue and discussion with employees, labor unions, and employee representatives.

･Initiatives in Japan

TOTO and TOTO UNION strive for smooth labor-management relations as well as facilitation of business activities by engaging in a variety of dialogs. More specifically, the two parties engage in aggressive labor-management negotiations on issues such as Remuneration and Labor Conditions and Reductions in Total Work Hours that lead to appropriate business operations.

In addition, an Executive Council was created for both management and union leaders to hold discussions once every 3 months. Decisions on particularly critical issues are made after sufficient review and consultation by the Labor Committee. Information about labor conditions and various systems introduced at the end of this process is disseminated on the diversity website and other company intranets, posted and distributed via UNION newsletters and the activities in which labor and management cooperate to make the information common knowledge.

Also, labor unions have been organized at TOTO and some group companies, and all labor unions of the TOTO Group companies employ a union shop system.

･Overseas efforts

We maintain appropriate labor-management relations by conducting sufficient discussions between labor and management and follow the labor laws of each country. Specifically, proactive communication is held on issues of "wages" "social welfare" and "environmental improvements" that lead to construction and maintenance of sound labor-management relations.
Also, at China's Group companies, a workers' organization called "Gōnghuì(Union)" has been organized, which actively provides various efforts.

TOTO Group has a program to support employees who are active at international and national sports tournaments and events.

The Chigasaki Plant Women's Basketball Team began as an internal club activity, gradually building up experience to expand their activity to the SB2 (East Japan) of the Japan Society Basketball League (SBL) and beyond to national tournaments.

The badminton club at the Head Office and Kokura 1st Factory has participated in the All Japan Corporate Badminton Championships 18 times in 16 consecutive years (As of April 2026) and is aiming to enter the S/J League. In addition, as individuals, they have been involved in a wide range of long-term activities, including participating in the All Japan Adult Badminton Championships and the All Japan Senior Badminton Championships.

The soft tennis club at the head office and Kokura 1st Factory has a history of over 40 years, and last year it received an award for outstanding organization from the Japan Soft Tennis Federation. The club members, both male and female, range from teenagers who love soft tennis to seniors in their 50s, and they have a goal in mind when practicing and competing, working hard to reach the top 16 in the All Japan Corporate Championships. Individual members, from young players to veterans, each member has won awards at various competitions, and one veteran member was selected to represent Japan at the 2025 Asian Games.

Aiko Kosao, who belongs to the Kitakyushu Branch Market Development Department, started weight training for the purpose of losing weight during the COVID-19 pandemic in 2020. Since starting JBBF Bikini Fitness in 2021, she has improved her results every year, and placed 4th in the Masters (40-44 years old) at the 2024 World Championships. She is currently working hard to balance her sales work with competition.

Toma Ebina from Utsunomiya AG of the Kitakanto Branch was selected as a member of the national team for the 31st FISU World University Games.He won prizes at the 31st FISU World University Games held in Chengdu, China, in 2023. (Event: Wushu Taijiquan (3rd place (bronze medal) in Taiji Sword) and 4th place in Men’s Taijiquan of Self-Selected Difficulty)He is engaged in both sales operations and sports every day on the daily basis.

Number of People Using Reduced Work Hour and Leave System

* Data for full-time /contract employees of TOTO LTD.
* For the categories of Reduced Work Hours for Childcare, Reduced Work Hours for Nursing Care and Assisting Employees in Balancing their Careers with Live Events, the figures listed for 2023 reflect data as of April 2024, those for 2024 as of April 2025, and those for 2025 as of April 2026. 
* Maternity/Childcare Support Leave, Papa-Mama and Grandchildren Leave and Leave System for Spouses Transferred Overseas: Data of full-time/contract employees of the TOTO Group (Japan)
* 1 Includes employees who have taken The TOTO Group’s unique childcare leave (Maternity/Childcare Support Leave and Papa-Mama and Grandchildren Leave).

Number of People Using Variety of systems to support diverse working methods

* Data for full-time /contract employees of TOTO LTD.
* Work-from-home system: Data for full-time /contract employees of TOTO Group(Japan).
*Calculation criteria for each system
- Leave systems (hourly leave, half-day leave, volunteer leave, refresh leave) are calculated based on the total number of times leave was taken during the relevant fiscal year.
- For the flextime system, the number of employees under the system at the end of the relevant fiscal year is used.
- The number of employees who used the teleworking system at least once during the target fiscal year.

Work Hours

※Data for full-time /contract employees of the TOTO Group (Japan)

Paid Holidays Taken

※Data for full-time/contract employees of the TOTO Group (Japan)

Employee Turnover Rate

※Data for full-time employees of the TOTO Group (Japan)
※The total turnover rate was calculated based on all the resignation reasons