Hiring in Japan
Here’s where you begin with human resources best practices and recruitment in Japan.
Japanese Currency
Japanese Yen (JPY)
The Capital of Japan
Tokyo
Time Zone in Japan
GMT+9
Important Facts About the Country of Japan
The Official Language of Japan
Japanese is the predominant language spoken in Japan, encompassing various dialects. Standard Japanese, spoken in Tokyo, is regarded as the norm.
An Overview of Japan’s Legal System
The modern legal framework in Japan draws its roots from the civil law system, which was shaped by 19th-century European legal traditions. Particularly, Japan’s legal structure bears significant resemblance to the legal codes of Germany and France. Established during the Meiji Restoration in 1868, Japan’s legal system evolved under the influence of the Meiji Constitution, which governed the Japanese empire from 1890 to 1945. Post-World War II, Japan underwent substantial legal restructuring, culminating in the drafting of the 1947 Constitution under the Allied Occupation, heavily influenced by American ideals. Presently, Japan’s legal system represents a blend of continental and American legal principles, while also reflecting traditional Japanese values.
The Unique Culture of Japan
Japanese culture is a captivating blend of tradition and innovation, boasting a diverse array of unique features spanning cuisine, architecture, performing arts, fashion, anime, manga, and the revered geisha tradition. Rooted in a rich history dating back thousands of years, Japan’s cultural landscape reflects deep-seated traditions alongside a constant embrace of modernity.
The dynamism of Japanese society is evident in its ability to seamlessly integrate traditional values with cutting-edge advancements in technology and infrastructure. This juxtaposition has long puzzled observers, as Japan’s innovative companies continue to disrupt industries while maintaining a steadfast commitment to traditional hierarchical structures, risk aversion, and meticulous attention to detail.
Human Resources in Japan at a Glance
What to Know About Employment Law in Japan
Japan’s labor law framework is primarily outlined in the Japanese Civil Code, with key articles delineating various types of contracts. Article 622 defines employment contracts, while article 632 pertains to contracts for work, and article 643 covers contracts for mandate. Despite the contractual labels, labor rights are applicable, emphasizing the importance of functional aspects over terminology.
Workers in Japan benefit from robust protections afforded by the country’s employment laws and established court precedents. Guidelines and notifications issued by the Japanese Ministry of Health, Labor, and Welfare (MHLW) typically lean towards safeguarding employees’ interests. Moreover, cultural norms, such as the traditional notion of ‘lifetime employment,’ and societal expectations significantly influence the dynamics of the employer-employee relationship.
The Necessity of an Employment Contract in Japan
In Japan, it is mandatory for employers to furnish employees with written terms of employment. Japanese employment contracts are typically concise and straightforward, designed to complement labor laws and workplace regulations. While contracts solely in English are permissible, it is customary to have versions in both Japanese and English. In cases where contracts are bilingual, it should be explicitly stated which version prevails in the event of a dispute.
Japanese Contract Terms Requirements and Restrictions
An employer and employee have the freedom to enter into a fixed-term contract, which does not necessitate renewal unless mutually agreed upon.
However, in the case of fixed-term employment contracts initiated after April 1st, 2013, if these contracts are renewed to extend beyond three years, the employee gains the right to request a transition to an open-ended contract. There have been two legislative acts with exceptions to this maximum duration. An exemption exists for employees possessing specialized knowledge or skills, or who are aged 60 or older, wherein the maximum term of the employment contract is extended to five years.
Imposing a retirement age below 60 years is prohibited. If the retirement age is below 65, the employer must undertake one of the following actions: 1) raise the retirement age to 65, 2) establish a system for re-employing employees desiring to work beyond the retirement age until they reach 65, or 3) eliminate the retirement age altogether.
Guidelines for Establishing Work Rules in Japan
Employers managing 10 or more employees are mandated to formulate work rules, which must be registered with the Labor Standards Inspection Office. Work rules constitute a vital component of the employment agreement, outlining specific terms and conditions including wages, working hours, leave entitlements, termination procedures, and dispute resolution mechanisms. Employers with fewer staff members have the liberty to draft work rules voluntarily.
Before submission, work rules must be presented to a representative of the majority of employees or, if applicable, a majority union, for feedback. In the event of any inconsistency between the work rules and the employment contract, the provision most favorable to the employee prevails.
Common Probation Period Practices
The probationary period, though not obligatory, is widespread. Typically lasting between three to six months, it should not surpass one year. Termination of employment during or at the conclusion of the probationary phase is permissible, but only if it is objectively justifiable and socially acceptable. While this standard is somewhat more attainable for probationary employees, justifying termination may still pose challenges.
Extending a probationary period is prohibited unless explicitly outlined in the work rules or employment contract, with the reasons and duration of the extension deemed reasonable.
What to Know About Severance Pay in Japan
Severance Pay is not mandated by law in Japan. Nonetheless, many multinational corporations (MNCs) typically offer some form of severance package upon termination. The customary amount often equals one month’s salary for each year of service, in addition to either 30 days’ notice or a payment in lieu of notice. Occasionally, there may also be compensation for accrued leave. Severance may be provided as a retirement allowance, presenting potential tax advantages for individuals who have long tenures with the company.
Rules Regarding Paid Leave in Japan
Newly hired employees usually receive 10 days of paid annual leave after completing six months of service. This allowance grows by one day per year for the next two years and by two days per year thereafter, reaching a maximum of 20 days. Any unused leave expires after two years unless otherwise stated in the contract. While employers are not required to compensate employees for unused annual leave upon termination, it can be discussed during the departure negotiations.
Mandatory Overtime Payments That Adhere to Japan’s Labor Standards Law
Overtime in Japan is limited to 45 hours per month and 360 hours per year. In case of temporary spikes in workload, the annual limit can be extended to 720 hours, with a monthly maximum of 80 hours (averaged over consecutive periods of two, three, four, five, or six months) and an absolute maximum of 100 hours per month.
The rates for overtime pay are as follows:
- – 125% of the regular hourly salary for hours worked over 40 but below 60 hours per week.
- – 150% of the regular hourly salary for hours worked over 60 hours per week.
High-level professionals may be exempted from overtime pay, holiday work, and late-night work compensation requirements through agreement, subject to specific formalities such as labor management committee resolution, filing with authorities, and individual consent. To qualify, the employee must earn at least JPY 10.75 million annually and engage in clearly defined work requiring specialized skills. These employees must also take a minimum of 104 days off per year and undergo health checks if they work beyond certain hours to ensure their well-being and health.
Notice Period Requirements for Employees and Employers
When resigning from a company, employees are expected to give their employers a notice period of 30 days, or as specified in the employment contract.
Employers, on the other hand, are required to give their employees at least 30 days’ advance notice of termination, or provide payment in lieu of notice. However, because it can be challenging to justify termination, many employers opt to offer severance agreements, making additional payments in exchange for the employee’s voluntary resignation and waiver of claims against the employer. It’s important to note that the 30-day notice period does not apply to employees terminated during the first 14 days of the probationary period.
Japan’s Rules Regarding the Termination Process & Fixed-Term Agreements
Terminating an employment contract in Japan can be quite challenging. Employers must have objectively valid reasons for dismissal, which are also considered reasonable within societal norms. Grounds for termination, such as poor performance or misconduct, which might suffice in other countries, may not hold weight in Japan.
If a termination is deemed unjustified, it is considered an abuse of the employer’s rights and is nullified. In such cases, the employee may seek reinstatement with back pay.
Given the complexities of termination, employers are increasingly resorting to hiring employees on fixed-term contracts, typically lasting for three years or less.
Rules Regarding Bonus and 13th Month Payments in Japan
Employers are not obligated to pay variable compensation, such as bonuses, if the payment is discretionary. However, in cases where bonus payments are specified in work rules or employment contracts as fixed amounts, typically distributed in more than 12 installments and paid in June (‘Kaki Shoyo’) and December (‘Toki Shoyo’), they are legally classified as wages. As a result, employers are legally required to make these payments.
Standard Fees & Allowances Typically Paid By Employers
On top of salary, companies usually pay transportation fees for employees from their residence to their working place. This commuter allowance, which is generally the cost of a monthly train pass, is usually subject to a cap and is a non-taxable allowance for the employee. Any other allowances paid on top of the base salary are subject to income tax.
Calculating Statutory Costs in Japan
Employer statutory benefit contributions amount to approximately 15% of the salary and taxable allowances.
Important Information About Taxes and Social Security in Japan
Personal Income Tax (PIT) for Permanent Residents and Non-Residents
Permanent resident taxpayers in Japan are subject to taxation on their worldwide income. Non-resident taxpayers, on the other hand, are only taxed on income derived from Japan. Non-permanent resident taxpayers are taxed on their income, excluding foreign-source income not brought into Japan. However, they may be taxed on a portion of foreign-sourced income that is transferred or remitted into Japan.
Personal Income Tax Rates Applicable to Taxable Income are as Follows:
Income tax rates (national):
Japan implements a progressive tax system, wherein an individual’s tax rate rises in tandem with their income. Currently, the following tax brackets are in effect:
| Taxable Income (JPY) | Tax Rate | Deduction |
|---|---|---|
| <¥1.95 million | 5% | ¥0 |
| ¥1.95-3.3 million | 10% | ¥97,500 |
| ¥3.3-6.95 million | 20% | ¥427,500 |
| ¥6.95-9 million | 23% | ¥636,000 |
| ¥9-18 million | 33% | ¥1,536,000 |
| ¥18-40 million | 40% | ¥2,796,000 |
| Over ¥40 million | 45% | ¥4,796,000 |
For instance, a single taxpayer earning ¥8 million in taxable income would be placed in the 23% tax bracket, resulting in a tax payment of ¥1.204 million (¥8M x 23% = ¥1.84M – ¥0.636M = ¥1.204M).
Calculating Local Income Taxes
Local governments in Japan, including prefectural and municipal authorities, impose a tax on residents based on their previous year’s income, collectively known as residence tax or inhabitant tax (“jumin-zei”). This tax amounts to a total of 10% of the taxpayer’s taxable income from the prior year, with 6% allocated to the prefectural government and 4% to the municipal government. It applies to individuals who are residents of Japan as of January 1 of the current year. Additionally, an equalization per capita tax is assessed for local inhabitant’s tax purposes, with a standard annual amount of JPY 5,000, although this may vary depending on the prefecture or municipality of residence. It’s important to note that local inhabitant’s tax is not deductible.
Non-Residents Employment Income Subject to Tax
Deductions Allowed For The Calculation Of PIT
Earned income deduction: Resident taxpayers earning employment income are eligible for an earned income deduction, applicable to both national income tax and local inhabitant’s tax. The deduction amount depends on the employment income and is determined using a deduction table.
Personal deductions: Interest expenses are not tax deductible. However, Japanese social security contributions are fully deductible. Medical expenses, irrespective of where incurred, are tax deductible, subject to certain limitations.
Charitable contributions: Charitable donations approved by the Ministry of Finance in Japan are tax deductible, with specific restrictions. Contributions exceeding JPY 2,000 are eligible for deduction in national tax calculations, capped at 40% of income or less than JPY 2,000. The definition of qualified contributions is stringent.
Life insurance premiums (or private pension): Premiums paid to a Japanese agency in local currency are partially deductible for national and local inhabitant’s taxes.
Earthquake insurance premiums: Premiums for earthquake insurance are partially deductible for both national and local inhabitant’s taxes.
Mortgage deductions: Mortgage interest is not tax deductible in Japan. However, taxpayers may be eligible for a tax credit on housing loans for up to ten years under specific conditions based on the year of property occupancy and mortgage balance.
Personal deduction: Resident taxpayers can claim a personal exemption for themselves and their dependent spouses, set at JPY 380,000 for national income tax and JPY 330,000 for local inhabitant’s tax.
Business deductions: Business expenses are deductible in limited cases. Employer reimbursements for business expenses (e.g., moving, travel, and entertainment) are not taxable income for employees, provided they are necessary for the employer’s business.
PIT: Employer Requirements for Withholding Income Tax & Year-End Adjustments
Withholding income tax at the source:
Employers responsible for income subject to withholding at the source must remit the withheld tax amount to the taxation office by the 10th day of the month following the payment month. A special provision is available for small businesses with less than 10 employees on the payroll concerning the payment of withholding tax on residents’ salaries. They can opt to pay withholding income tax in six-month installments or semi-annually (by July 10th and January 20th), with professional fees included.
Year-end adjustment on withheld income tax:
The year-end adjustment involves recalculating the income tax by the employer. Throughout the year, a portion of the employee’s salary is withheld each month based on rates provided by the tax office. At year-end, the exact tax liability of the employee is determined, considering individual circumstances such as the number of dependents. An adjustment is made to ensure that the total tax withheld during the year matches the employee’s tax liability. The amount of tax withheld from employees is reported annually in the withholding tax report (‘Gokeihyo’), filed in January.
Employers’ Responsibilities Regarding Social Insurance
Japan mandates participation in four insurance systems, covering workers who meet specific criteria:
1. Workers’ Accident Compensation Insurance: This insurance covers illnesses or injuries sustained at work or during commuting.
2. Employment Insurance: This insurance aids workers who become unemployed, ensuring stability through financial assistance and subsidies.
3. Health Insurance and Nursing Care Insurance: These insurances cover medical and nursing care expenses for workers.
4. Employees’ Pension Insurance: This insurance provides benefits related to old age, death, or disability.
Employers with more than 101 employees must enroll part-time employees in social insurance coverage.
| Social Security System | Monthly Salary Cap (JPY) | Employer Contribution | Employee Contribution |
|---|---|---|---|
| Pension Insurance | 650,000 | 9.15% | 9.15% |
| Children’s Fund | 650,000 | 0.36% | – |
| Health Insurance | 1,390,000 | 5.00% | 5.00% |
| Long Term Care Insurance (over 40 yrs. old) | 1,390,000 | 0.91% | 0.91% |
| Unemployment Insurance | – | 0.95% | 0.60% |
| Worker’s Compensation | – | 0.3% | – |
| Total | 16.67% | 15.66% |
*The above table serves as a broad guideline. Actual rates charged by GoGlobal will differ.
Workers’ Accident Compensation Insurance and Employment Insurance are collectively known as labor insurance in Japan, while Health Insurance, Nursing Care Insurance, and Employees’ Pension Insurance are referred to as social insurance.
When incorporating a company or hiring staff, it is mandatory to enroll in these insurance systems by submitting labor and social insurance notification forms to the relevant authorities. Typically, companies pay insurance premiums by deducting the portion payable by employees from their wages and remitting both portions to the appropriate authorities.
Social insurance premiums are deducted from workers’ monthly salaries. Pension and health premiums are calculated based on the “standard salary,” determined by averaging compensation from the previous three months and referring to a standard salary table. The maximum standard salary is capped at JPY 650,000 for pension and JPY 1,390,000 for health. Premiums for Unemployment and Workers’ Accident Compensation Insurance are calculated as a percentage of actual compensation, not the standard salary.
Bonus payments are also subject to these insurances, with rules varying based on payment frequency and regularity. There are annual caps on premium payments related to bonuses.
Rules Regarding Pension Insurance Contributions
All residents contribute to pension insurance, with premiums adjusted annually in April based on factors like price fluctuations and the real wage index. Salaried workers under 70 pay a percentage of their standard salary towards this premium, which currently stands at 18.30%. This contribution is split equally between the employer and the employee.
Pension benefits become available once the insured individual reaches the age of 65 and meets the requirement of being unemployed while having paid pension premiums for at least 10 years. The benefit amount is determined by the total contributions made by the individual over their working years.
Non-Japanese workers who have resided and worked in Japan for less than 10 years may request a lump-sum refund of their national pension contributions upon leaving Japan and becoming ineligible for Japanese pension benefits. This option is available to those covered by employees’ pension insurance for at least six months. Applications must be submitted within two years of leaving Japan.
Additionally, employers contribute a child allowance premium (0.36%) alongside the pension premium. This premium supports a government program providing childcare allowances to Japanese residents with dependent children.
What to Know About Health Insurance and Long Term Care Insurance in Japan
Health insurance in Japan provides medical coverage for all insured residents, while long-term care insurance offers benefits for elderly care needs, as well as allowances for childbirth, injury, sickness, and death. National health insurance covers non-salaried residents under the age of 75, while employees’ health insurance extends to salaried workers under 75 and their dependents. Upon reaching 75 years of age, both non-salaried and salaried individuals are covered under the Latter-Stage Elderly Healthcare System.
For individuals under 70 or aged 70 to 74 with a standard salary of JPY 280,000 or more, national and employees’ health insurances cover 70% of medical expenses. For those aged 70 to 74 with a standard salary below JPY 280,000, the government covers 80% of medical expenses, and for individuals over 75, 90% of expenses are covered. Excess medical costs exceeding a certain threshold are reimbursed, with the maximum threshold determined by the insured person’s compensation and age.
Similar to pension contributions, employees’ health insurance premiums are calculated based on standard salary, with rates varying by the employer’s registered prefecture. For instance, in Tokyo, the rate is 10%, split equally between employer and employee. Individuals aged 40 to 64 also contribute an additional 1.8% premium for long-term care insurance, with both employer and employee sharing the cost equally.
Japan’s Parameters for Eligibility and Receipt of Unemployment Insurance
Unemployment insurance in Japan offers allowances for unemployment, childcare, and family care leave.
The duration of unemployment allowance is determined by factors such as age, reason for termination, and the period of unemployment insurance premium payments. For individuals terminated by the company, there is a four-week waiting period before the first allowance payment. Those who resign voluntarily face a waiting period of up to three months. Following the waiting period, allowances are paid monthly, contingent upon proof of active job search efforts.
Representative directors and those serving solely on the board of directors are not eligible for unemployment insurance, as they are not bound by standard employment agreements. However, directors who hold dual roles as employees, such as high-ranking employees with titles like department heads, are eligible.
Premium rates for unemployment insurance vary based on the employer’s industry type, with employers typically bearing a higher percentage of the premium than employees. For instance, in general industries (excluding agriculture, forestry, fishery, sake production, or construction), employers contribute 0.60% of the premium while employees contribute 0.30%.
Rules About Eligibility and Receipt of Workers Accident Compensation Insurance
Worker’s accident compensation insurance provides medical care allowances for injuries, diseases, and fatalities incurred during work or commuting. It also offers compensation for unpaid medical leave exceeding four days.
Similar to unemployment insurance, directors face exceptions regarding eligibility. However, there are avenues for representative directors and directors to qualify. One method is through special enrollment, which has specific requirements like industry type and workforce size. Alternatively, directors who also serve as employees may attain eligibility for unemployment insurance. Representative directors, excluded from unemployment insurance, cannot pursue this route.
Premiums are the responsibility of the employer and vary based on industry type, ranging from 0.25% to 10.3%. Common sectors include finance, insurance, and real estate (0.25%), warehousing and security (0.7%), as well as wholesale/retail trade, restaurants, and lodging (0.4%).
An additional premium of 0.002% is paid by employers for asbestos insurance, supporting healthcare assistance for asbestos-related injuries.
Alternative Health Unions Available to Employers in Japan
While the majority of employers enroll their employees in public health insurance, certain industries offer alternative health unions. In these instances, employers choose to forgo the standard health insurance scheme. Typically, premiums are lower, and benefits are more extensive compared to the standard scheme. However, eligibility criteria must be met for employers to participate in these alternative unions.
Additionally, employers have the option to enroll in a pension fund, offering employees enhanced pension benefits upon reaching retirement age.
Availability of Pension Funds and Supplemental Insurances in Japan
401(k): While many employers in Japan opt for the government pension scheme, some multinational companies may offer an equivalent of a 401(k) plan, administered by a third-party provider. Employers establish contribution thresholds and matching schemes, enlisting the services of a third-party provider for management. Typically, there are minimum employee thresholds required for the implementation of such a plan in Japan.
Smaller multinational employers often do not offer supplemental insurance as standard insurance policies cover most needs. However, larger multinational corporations may provide additional benefits such as life insurance, top-up insurance, and travel insurance. Directors and Officers Liability (D&O) Insurance is also common for senior executives.
Other Employer Tax
Business facility tax is imposed on both local and expatriate employers. The tax rate amounts to 0.25% of the employee’s monthly salary.
What Employees Need to Know About Working in Japan
Information Regarding Salary Payments
Workers must receive their wages:
- in currency
- directly and in full
- at least once a month
- on a specified date
Typically, salaries are disbursed between the 25th and 31st of the month for the current month’s work. If wages are paid retrospectively, they are usually distributed by the 10th of the subsequent month.
Options for Providing Payslips to Employees
Employers have the option to furnish employees with payslips electronically, such as in PDF format or through online platforms, or in traditional paper format.
Japan’s Laws Regarding Timesheets and Record Keeping
According to the Labor Standards Law, each workplace is required to keep the following records for a period of three years:
1. A wage ledger, documenting paid amounts and the method of calculation, including hours worked.
2. A workers’ roster.
3. Other pertinent documents concerning hiring and compensation.
Important Holiday Allowance Requirements
The maximum work week in Japan consists of six days. Employers must ensure that employees are granted at least one day off per week, although this day off does not need to be fixed to a specific date. While it’s not obligatory for employers to recognize public holidays as company holidays, it’s a customary practice to provide two company holidays per week (typically Saturday and Sunday) in addition to public holidays falling on weekdays. Japan observes approximately 16 national holidays annually. Moreover, most businesses shut down from December 29 to January 3, despite only January 1 being designated as a national holiday. Many Japanese companies also close for up to one week in August to observe the Obon holidays.
Labor Laws, Annual Leave, and Paid Vacation Days
| Length of Continuous Service | 6 months | 1st year and 6 months | 2nd year and 6 months | 3rd year and 6 months | 4th year and 6 months | 5th year and 6 months | 6th year and 6 months onward |
|---|---|---|---|---|---|---|---|
| Number of entitled annual leave days | 10 | 11 | 12 | 14 | 16 | 18 | 20 |
Typically, the full allocation of annual leave for a specific year is provided either on the yearly anniversary of employment or on a designated day applicable to all employees.
Since the implementation of special regulations concerning high-level professionals starting from April 1st, 2019, eligible employees are required to take a minimum of 104 days of holidays annually, with no fewer than four days every four weeks. Employers must ensure that employees receive at least one annual holiday period of two consecutive weeks, along with other specified health benefits.
Rights & Prohibitions Regarding Maternity Leave in Japan
- Before childbirth: Pregnant employees are entitled to maternity leave, which can commence up to six weeks before the expected date of childbirth, or up to fourteen weeks in cases of multiple pregnancies.
- After childbirth: Employees are prohibited from returning to work until at least eight weeks have elapsed since the birth. However, after six weeks postpartum, the employee may request to return to work. The employer has the discretion to permit the employee to undertake approved duties, as certified by a medical professional.
- Employers are not obligated to provide paid maternity leave. If no wages are provided, the employee is eligible to receive two-thirds of her base wage for a maximum of 14 weeks, paid through her health insurance. This allowance received from health insurance is non-taxable.
- As per the Act on Equal Opportunity and Treatment Between Men and Women in Employment, it is unlawful for employers to discriminate against female employees due to maternity leave. Therefore, upon returning from maternity leave, employees are entitled to resume the same position with equivalent working conditions.
Entitlements & Wages Paid During Paternity Leave
Male employees are granted four weeks of flexible paternity leave, which can be utilized within the initial eight weeks following childbirth. Applications for paternity leave must be submitted to the employer at least two weeks in advance. During paternity leave, wages are covered by social security at the same rate as maternity leave, amounting to two-thirds of the base wage.
This new regulation fosters an environment that encourages working fathers to avail themselves of paternity leave, promoting greater gender equality in the workplace.
Japan’s Allowances for Child Care Leave
An employee caring for a child, whether through birth or adoption, who is less than one year old, is entitled to parental leave until the child reaches the age of one. If both the father and mother opt to take childcare leave, the duration extends until the child reaches one year and two months.
Under certain circumstances, the leave period may be prolonged until the child turns two if either the employee encounters difficulties in securing daycare placement or if the employee’s spouse, who intended to continue caring for the child after they turn one, is unable to do so due to incapacitation or demise.
Employers are not mandated to provide compensation during childcare leave. In cases where no wages are disbursed or only a partial wage amounting to less than 80% of the base wage is provided, the employee is entitled to receive half to two-thirds of their base wage from their unemployment insurance.
Childcare leave can be availed on an hourly basis, with the hourly leave commencing from the employee’s regular start time or ending at the daily finish time. This hourly leave option also applies to employees working four hours or fewer per day.
All permanent employees, including those with less than one year of continuous service, are eligible for childcare leave. However, employees on fixed-term contracts must complete at least one year of continuous service to qualify.
Employees taking childcare leave are exempted from social insurance premiums for the month in which the childcare leave spans more than 14 days.
Guidelines on Nursing Care Leave for Employers & Employee
Paying employees during nursing care leave is not obligatory. In cases where no wages are provided or only a partial wage amounting to less than 80% of the base wage is offered, the employee may receive 40-80% of their base pay from their unemployment insurance.
Nursing care leave can be taken on an hourly basis, starting from the employee’s regular daily start time or ending at the daily finish time. Similarly, employees working for four hours or less per day are eligible to take nursing care leave on an hourly basis.
Other Common Reasons to Grant a Leave of Absence
Providing leave for events such as marriage or the death of a relative is a standard practice. These provisions should be clearly outlined in the Rules of Employment.
Benefits to the Employee in Japan
Popular Japanese Neighborhoods for Residents and Foreigners
Certain districts in Tokyo offer a comfortable and welcoming environment for foreigners, making them highly sought-after among expatriates. These neighborhoods include Minato-ku (Aoyama, Azabu, Roppongi, and Shirokane), Meguro-ku (Nakameguro and Jiyugaoka), and Shibuya-ku (Hiroo, Daikanyama, and Ebisu). In Yokohama, Naka-ku stands out as a popular area. These areas boast a variety of international schools, as well as shops and restaurants with English-speaking staff. When choosing where to live, expats often consider factors such as proximity to their workplace, access to schools for their children, and their preferred lifestyle.
Public Transportation for Getting Around Japan
Japan’s extensive public transportation system, particularly its trains and the Shinkansen (bullet trains), offer swift and reliable travel options for reaching destinations both nearby and distant.
World-Class Japanese Cuisine
Eating out in Tokyo or any major Japanese city promises a memorable culinary adventure. Beyond the diverse array of Japanese dishes, you’ll discover top-tier international cuisine, boasting exceptional Chinese, Italian, French, and Indian restaurants.
Tokyo, renowned for its gastronomy and premium dining establishments, has upheld its status as the city with the highest number of Michelin-starred restaurants worldwide for 15 consecutive years.
Rates & Rules Regarding Overtime Pay in Japan
For employees not exempt from overtime regulations, the maximum allowable work hours stand at 40 hours per week, equating to eight hours per day.
To request overtime from employees, employers must establish a labor-management agreement, commonly known as a “36 Agreement,” stipulating the maximum permissible overtime hours. This agreement necessitates collaboration with either the labor union or employee representative and must be formally submitted to the relevant labor standards inspection office.
Overtime compensation in Japan adheres to minimum rates:
– For overtime up to 60 hours per month: 25% of the hourly base pay
– For overtime exceeding 60 hours per month: 50% of the hourly base pay
– Late-night work (hours between 10 p.m. and 5 a.m.): 25% of the hourly base pay
– Holiday work (hours on legal holidays): 35% of the hourly base pay
Benefits Expats Commonly Receive When Working in Japan
Foreign residents living in Japan often benefit from various allowances and perks to facilitate their stay, including a cost of living allowance (COLA), annual home leave, access to international schools, club memberships, and accommodation provided through tax-efficient legal rent schemes. Some expatriates may also receive a car allowance, although additional security or driver services are less common.
Qualifications for Receiving an Annual Health Check Benefit
Workers aged 35 and above who are enrolled in the social insurance general system known as “Kyokai Kempo” are eligible for an annual physical examination at designated hospitals by ‘Kyokai-kempo’ (協会けんぽ). The cost of this check-up typically amounts to approximately JPY 7,000, with options for more comprehensive examinations available for an extra fee.
Statutory Industrial Doctor
According to the Industrial Safety and Health Law, workplaces with 50 or more employees are required to designate an Industrial Doctor (also known as an occupational physician) responsible for health management tasks, including:
1. Conducting on-site health checkups
2. Providing guidance through interviews for employees working long hours
3. Administering stress checks annually and providing guidance to highly stressed employees
4. Offering health education, counseling, and other initiatives to support and enhance employees’ health
5. Ensuring the maintenance and management of the work environment to safeguard employees’ health
6. Investigating health issues among workers and implementing preventive measures.
Information Regarding Visas and Foreign Workers
General Requirements and Procedures for Foreign Workers
Procedure for obtaining approval:
Foreign nationals seeking employment in Japan must follow specific steps to obtain the necessary approvals:
1. **Certificate of Eligibility Application:** Foreign nationals must apply for a Certificate of Eligibility (‘Zairyu Shikaku Nintei Shomei Sho’) from the immigration authority office in Japan. This application can be submitted either in person or through a qualified representative, such as an employer or legal advisor.
2. **Visa Application:** After receiving the Certificate of Eligibility, foreign nationals need to apply for a visa at the nearest Japanese consulate or embassy in their home country. The Certificate of Eligibility is a prerequisite for the visa application.
3. **Arrival and Immigration Control:** Upon arrival in Japan, foreign nationals must present their Certificate of Eligibility at the immigration control point. After inspection, they receive a seal of landing permission, commonly known as a working visa stamp, which is affixed to their passport and residence card (‘Zairyu Kaado’).
4. **Residence Registration:** After arrival, foreign nationals must register their residence address with the local city office.
5. **Processing Times:** The processing time for a Certificate of Eligibility is typically one to three months, depending on factors such as additional document requests or inquiries. The processing time for a working visa is approximately one week.
6. **Renewal of Stay:** If the foreign national plans to continue staying in Japan beyond the expiration date on their residence card, they must apply for a renewal of their period of stay before it expires.
Types of Visa Required for Both Short- and Long-Term Visitors
Short-term stay visa, up to 90 days: This visa allows holders to participate in business meetings or training sessions. Depending on the traveler’s country of origin, this visa may be granted upon arrival or may require pre-application and authorization.
For longer-term stays, individuals must apply for a Certificate of Eligibility, which typically takes four to 12 weeks to process. Once the Certificate of Eligibility is issued, it must be converted into an actual visa within three months.
Common visa types include:
1. Engineer/Specialist in Humanities/International Services Visa
2. Intra-Company Transferee Visa (commonly used for employees relocated to Japan from overseas)
3. Highly Skilled Visa – Designed for highly skilled professionals.
Working Visa Restrictions
Working visas are exclusively for roles demanding a high level of professional expertise or specialized skills. Consequently, individuals under a working visa cannot undertake manual or basic labor, unless they possess a visa granted based on family status (such as being a spouse or child of a Japanese national, long-term resident, etc.), a trainee visa, or are part-time workers under student or dependent visas.
Public Holidays Recognized by Japan in 2024
| Occasion | Date | |
|---|---|---|
| 1 | New Year’s Day | January 1 |
| 2 | Coming-of-Age Day | January 8 |
| 3 | National Foundation Day | February 11 |
| 4 | Emperor’s Birthday | February 23 |
| 5 | Vernal Equinox Day | March 20 |
| 6 | Shōwa Day | April 29 |
| 7 | Constitution Memorial Day | May 3 |
| 8 | Greenery Day | May 4 |
| 9 | Children’s Day | May 5 |
| 10 | Marine Day | July 15 |
| 11 | Mountain Day | August 11 |
| 12 | Respect for the Aged Day | September 16 |
| 13 | Autumn Equinox Day | September 22 |
| 14 | Health and Sports Day | October 14 |
| 15 | Culture Day | November 3 |
| 16 | Labour Thanksgiving Day | November 23 |
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