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this doesn’t apply to contractors and part-time employees, AFAIK
This is for full-time “permanent” employees known as 正社員 (seishain). There are cases where a long-term contract worker gains those same protections (I think after 5 years, but I’m not too up on that).
Various other types of employment have their own restrictions and freedoms to varying degrees on both sides, but I’m not super knowledgeable there.