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Yes—but the headline leaves out two important details. Japan’s Supreme Court upheld Kyoto City’s decision to withhold a municipal bus driver’s full one-time retirement allowance of ¥12,114,214 after he diverted a ¥1,000 fare payment and used a prohibited e-cigarette on duty five times. The case was about a city retirement allowance, not an ongoing pension, and does not establish an automatic rule for private-sector workers.
What did the driver do?
The driver had worked for Kyoto City’s bus service for about 29 years. In the fare incident, five passengers paid ¥1,150 in total. He directed them to put coins into the fare box, then took a ¥1,000 note by hand without recording it as fare revenue. He later repaid the money. The case also included five instances of using an e-cigarette on the bus despite a transport-bureau ban. The court record describes the conduct.
The record also noted multiple commendations and earlier reprimands or cautions related to driving incidents. It reported no other misconduct involving general service duties or public funds.
Was it a pension worth €73,000?
Not in the usual sense of a pension. The dispute concerned a one-time general retirement allowance under Kyoto City’s rules. The reported amount was ¥12,114,214; “€73,000” is a headline conversion, not an amount stated by the court. Exchange rates change, so that euro figure should not be treated as a current conversion or as a periodic pension payment. The case summary gives the allowance amount.
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How did the courts rule?
| Court | Ruling |
|---|---|
| Kyoto District Court | Upheld both the disciplinary dismissal and the full withholding of the retirement allowance. |
| Osaka High Court | Upheld the dismissal but found that withholding the full allowance was excessive and unlawful. |
| Supreme Court, April 17, 2025 | Reversed the High Court on the allowance issue and dismissed the driver’s appeal on that point, leaving the full withholding in force. |
The Supreme Court First Petty Bench decided the case as Reiwa 6 (Gyo-Hi) No. 201. Its ruling did not undo the dismissal. The judgment and case summary set out the final outcome.
Why did the Supreme Court uphold the full withholding?
The Court interpreted Kyoto City’s rule as giving the administrator discretion both to restrict a retirement allowance and to decide the amount withheld. That discretion is not unlimited: a decision can be unlawful if it exceeds or abuses the authority, including by being markedly unreasonable under social standards.
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In this case, the Court treated the diverted fare as serious because it involved public money handled as part of the driver’s official duties. Bus drivers can receive fares directly from passengers and ordinarily work alone, making proper handling of fares especially important. The ruling reasoned that the misconduct harmed the proper operation of the municipal transport business and public confidence in it.
Shinichi Hirai, an official at Kyoto’s public transport bureau, described the concern to AFP: “Each one of the bus drivers works alone and handles public money. We took it very seriously that embezzlement related to this area of our work took place.” He also warned that failing to enforce strict measures could erode public trust. Those are the official’s remarks, not words from the Supreme Court judgment. AFP’s report quotes him.
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Does this mean private employees lose retirement benefits for small thefts?
No. The Supreme Court decided a case involving Kyoto City’s municipal rules and this driver’s conduct. It did not hold that Japanese law automatically strips private-sector employees of retirement benefits whenever they commit a small theft. Whether a private employer can reduce or withhold a benefit depends on the applicable rules and circumstances; this municipal judgment alone does not resolve those questions.
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