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In Japan, thats the whole point. The business will do this to make you quit instead of them firing you. They have whack employment laws.
Sounds good in a way because you can take as long as you like applying for other jobs without losing your current income.
Often comes with a job title change and people notice those sorts of things in Japan.
Better than being homeless whilst trying to find a new job
Japan is weird I’m not sure if it’s still this way but at one point homelessness or a resume downgrade would be a legitimate hard decision.