Two important employment practices in large firms in Japan are long-term employment and seniority-based wages. This chapter describes both the traditional function of these practices and recent changes to them. Worker representation systems in large companies are also examined with a focus on enterprise unions and joint labour-management committees. The effects of these practices on wage setting and employment adjustment, as well as the impact of recent changes, are examined. In particular, it is assumed that the globalisation of financial markets has affected labour markets, increasing the proportion of non-regular workers. As the shareholdings of foreign institutions increase, firms are increasingly likely to emphasise shareholder value.