Japan

CURRENCY
YEN

FISCAL YEAR
1st January – 31st December

MIN. WAGE
823 JPY/Hour

WORKING CONDITIONS
See conditions below

PAY FREQUENCY
No less than once a month

Employment & Payroll

Japan requires that workers have employment contracts that meet rules under the Japanese Labor Standards Law, and companies must have a professional who can draft local employment contracts.

Employers must pay wages in legal tender, directly to the employee, not less than once per month, and on a specified date. However, employers are allowed to remit wages into a bank account specified by the employee where the employee agrees to that method of payment, and may also deduct social insurance premiums, taxes and similar expenses from wages.

Minimum Wage

Minimum Wages in Japan increased to 823 JPY/Hour in 2017.

HR & Labour

Working hours must, in principle, not exceed 40 hours per week or eight hours per day excluding breaks (this is known as “statutory working hours”). Employers must grant employees at least one day off per week, or four days off in any four-week period (this is known as “statutory days off”).

Immigration

Foreigners, who wish to work in Japan, need to get a work visa from a Japanese embassy or consulate outside of Japan in order to enter the country on a status of residence permitting work. There are 27 types of visa in Japan and the requirements as well as the authorized activities are different for each of them. For any jobs change while in Japan and the new job falls into a different professional field (e.g. from education to engineering), you will need to change your status of residence. A university degree or considerable professional experience in the applicable field is required to qualify for most working visa types. Many also require to have a prospective employer as a sponsor. Residence permission is granted in periods between 4 months and 5 years and is extendable.

Statutory Payments

Both the Company and Employees must be enrolled into the National Social and Labour Insurance programs consisting of Health Insurance, Pension benefits, Nursing Care Insurance added for people between 40 to 65 years old, Unemployment Insurance and Accident Compensation Insurance.
Both the employer and employee (approximately a 50/50 split in the cost) pay for the premiums for these social benefits.

Worker’s Compensation

The workmen’s accident compensation insurance system is applied compulsorily to all workers who are employed in enterprises to which the Labour Standards Law is applied and receive wages. They include those regularly or temporarily employed, daily-wage workers, and both full-time and part-time workers, irrespective of the size of enterprises.

Leave Entitlements

  1. Annual Leave
    Permanent and contract employees are entitled to a minimum of 10 days paid leave per annum after six months rising to 20 days with more than six-and-a-half years’ of service. This allowance can be pro-rated for partial years worked.
     
  2. Maternity leave
    Guaranteed maternity leave in Japan covers a period of 6 weeks prior to the expected birth date to 8 weeks after giving birth. Employee may return to work earlier after getting approval by a medical doctor.
     
  3. Child care leave
    Child care leave applies to both female and male employees. Child care leave starts from the day after the maternity leave ends (i.e. 8 weeks after the birth date), to the day before the child reaches the age of 1. During child care leave, payment will be covered by the labor insurance.

Terminations

An employer must generally give an employee at least 30 days’ advance notice of dismissal, or pay the employee in lieu of all or part of this notice period, while an employee may generally resign with two weeks’ notice.

There is no statutory requirement for employers to offer any form of severance payment on termination of employment.

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