社長 demands 210,000 yen penalty after contractor hospitalized and gave notice—need help

Hi everyone, I’m a 個人事業者 (independent contractor) working under contract with a Japanese 社長. I’m facing a dispute about a penalty fee called 現場調整費 (site adjustment fee) after I was hospitalized and informed my 社長, but he’s demanding payment and refuses to let me continue working. I’d appreciate advice on whether I’m obligated to pay and how to handle this legally.

Contract summary (key clauses translated):

Article 10 (Compensation for Damages)
The contractor (乙) is responsible for any damages caused to the client (甲) or third parties due to reasons attributable to the contractor, including but not limited to damage, loss, theft, deterioration, decrease in quantity, or delay.
If the contractor fails to perform the work (such as not showing up on the day without notice), the client may deduct a site adjustment fee (現場調整費) of ¥30,000 per day from the contractor’s payment.
However, this does not apply if the cause is natural disasters, other force majeure, or if the client recognizes a valid reason.

Article 13 (Mid-term Cancellation and Cancellation Fee)
If either party wishes to cancel the contract early for personal reasons, they must notify the other party in writing [number of] months in advance.
If this is violated, the party may be exempted from all payment obligations related to the contracted work.

My situation:
• Scheduled August shifts: 15,16,22,27,28,30 (6 days)
• On August 8 (a scheduled workday), I was hospitalized due to a panic attack and informed my 社長 immediately with full medical details.
• I was hesitant to commit due to health but never said I was quitting; I said I’d see if I could work depending on my condition.
• I offered to work the remaining days if possible.
• 社長 insisted I must work the August shifts but then told me I cannot continue and must return the leased vehicle.
• 社長 demands:
• Lease fee (リース代): ¥30,000
• 現場調整費 for 6 days (6 × ¥30,000): ¥180,000
• Total: ¥210,000
• I worked 1 day before this and earned ¥18,500, which was not deducted from the fees demanded.

Full conversation with 社長 (translated):

社長:
Please call me when your symptoms settle.

Me:
Thank you for your work.
I just got back from the hospital.
This morning, I had a panic attack causing breathing difficulty and nausea, so I went by ambulance.
My parents picked me up, and we discussed my condition.
The doctor advised consulting psychiatry or psychosomatic medicine and counseling.
Since stress is a cause, I was told to rest and take care of my mental health.
I’m considering what to do next.
My parents say if I can’t get treatment here, returning to the Philippines to rest might be best.
I’m considering that too.

社長:
I already scheduled your August shifts, so I want you to work.

Me:
I understand the shifts are set.
However, my health is unstable, so I can’t confirm yet.
I’ll try to adjust while watching my condition and contact you again.
I don’t want to cause trouble during work due to my health.
Thank you for understanding.

社長:
You said it’s stress-related. Is it from the factory?
How about delivery work?

Me:
Stress is one cause, but I had depression symptoms before.
I also have personal and family stress.
Delivery alone was tougher than I imagined and stressful.

社長:
You must work in August. Please.

社長 (next day):
Please contact me.
If impossible, it’s okay, just return the car.

Me:
Sorry for the late reply.
I was resting and thinking about what to do.
I apologize for the trouble.
Can I return the car around 6 pm today?

社長:
Return it to the previous place.
Leave the key inside.
No prorated lease fee, so pay full.
Also pay site adjustment fee for August shifts: 15,16,22,27,28,30 (6 days).
Leave cash in the car.
No charge for August 8 as it was unavoidable.

Me:
I forgot about the adjustment fee.
Currently hard to pay, but I want to try working remaining 6 days if possible.
Is that okay?

社長:
No, arrangements are made, so difficult.
Honestly, trying is a big inconvenience.
Return car by 6 pm and pay then.

Me:
What is the total amount?
It’s hard to prepare payment today.
Can I split payment or have more time?

社長:
Understood.
How much can you pay now?

Me:
I spent money on hospital bills yesterday and have no cash now.
Payday is 25th, want to pay then.
Please tell me amount.

社長:
Lease fee: ¥30,000
Adjustment fee (6 days): ¥180,000
Total: ¥210,000
Can you pay?

Me:
That’s large and hard to pay immediately.
My health is unstable; please understand.
I want to discuss installment or deferment.

社長:
Can you borrow money?
Installment possible for current drivers, difficult for those who left.
Please pay ¥30,000 lease fee today.
We’ll consider rest later. I’m willing to talk.

Me:
I’ll ask friends to lend money.
If I can’t pay ¥30,000 immediately, I’ll try by next week. Okay?
Then want to discuss rest.

社長:
Understood.
Please return car by 6 pm today.

My questions:
• Am I legally required to pay the full 現場調整費 for the 6 days when I notified illness and offered to work but was refused?
• Can the salary I earned from 1 day worked be deducted from the demanded fees?
• Does the penalty clause apply since I gave notice and never quit?
• What rights do I have as a 個人事業者?
• How should I proceed legally and communicate with 社長?

Thanks in advance for any advice or insights.

by MoreCar8457

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