Hire in Japan
Access Japan's world-class engineering and technology talent without navigating the Labour Standards Act, 36 Agreements, and strong dismissal protections alone. Vectis handles everything — onboard in 48 hours.
Quick Facts
Japanese Employment Law Guide
A practical overview of Japan's Labour Standards Act — from 36 Agreements and overtime caps to strong dismissal protections and the five-year fixed-term conversion rule.
Employment Contracts
- ✓Written contract required; must specify wage, hours, duties, and termination grounds
- ✓Indefinite-term (seishain) contracts are the norm; fixed-term max 3 years (5 for specialists)
- ✓Fixed-term employees gain indefinite rights after 5 years of continuous service (2013 reform)
- ✓Probation: typically 3–6 months; legally permissible up to trial period standards
- ✓Work rules (shūgyō kisoku) are legally binding for employers with 10+ employees
Working Hours & Overtime
- ✓Standard: 8h/day, 40h/week under the Labour Standards Act
- ✓Overtime requires a 36 Agreement (sanjūroku kyōtei) filed with the Labour Standards Inspection Office
- ✓Overtime cap: 45h/month ordinarily; absolute maximum 100h/month in special periods
- ✓Annual overtime limit: 360h ordinary; 720h in special-reason periods
- ✓Working Style Reform Act (2019): stronger enforcement of overtime caps with criminal penalties
Leave Entitlements
- ✓10 days paid annual leave after 6 months; rises to 20 days after 6.5 years of service
- ✓Employers must ensure employees take at least 5 days of annual leave per year (mandatory since 2019)
- ✓16 weeks maternity leave (6 weeks pre-birth mandatory, 8 weeks post-birth mandatory)
- ✓Childcare leave (ikuji kyūka) available to both parents until child turns 2
- ✓16 national public holidays — among the most of any major economy worldwide
Wages & Bonuses
- ✓Regional minimum wages set by prefecture; Tokyo ¥1,113/hr (2024)
- ✓Bi-annual bonus (夏季・冬季賞与) customary — typically 2–4 months of base salary
- ✓Commuter allowance (tsūkin teate) mandatory at actual public transport cost
- ✓Equal pay obligations: fixed-term and part-time workers get equal pay for equal work
- ✓Salary revisions (定期昇給) typically occur annually in April
Social Insurance
- ✓Health insurance (Kenpo): employer ~5%, employee ~5% of monthly salary
- ✓Welfare pension (Kōsei Nenkin): employer ~9.15%, employee ~9.15%
- ✓Employment insurance (Koyō Hoken): employer 0.95%, employee 0.6%
- ✓Workers' accident insurance (Rōsai): employer-only premium based on industry risk
- ✓My Number (individual number) required for all social insurance registrations
Termination
- ✓Dismissal requires "objectively reasonable grounds" that are "socially acceptable" — courts set high bar
- ✓Notice: 30 days in advance or 30 days' average daily wage in lieu of notice
- ✓Redundancy (seiri kaiko) requires meeting the 4-factor Kōdate test: business necessity, avoidance efforts, fair selection, and consultation
- ✓Indefinite employees have very strong dismissal protection; wrongful dismissal judgments are common
- ✓Mutual agreement retirement (gōi taishoku) is the most common and practical exit mechanism
How to Hire in Japan with Vectis
From offer to payroll — compliant with Japan's Labour Standards Act.
Share the details
Role, salary in JPY, prefecture (determines minimum wage), and start date. We review work rules requirements.
We draft the contract
Japanese-language employment contract covering all mandatory terms, probation, and work rules (shūgyō kisoku) reference.
36 Agreement & social insurance
File the 36 Agreement with the Labour Standards Inspection Office, register Kenpo, Kōsei Nenkin, and Koyō Hoken.
Monthly payroll & reporting
Monthly salary slip, withholding tax (gensen chōshū), My Number compliance, and seasonal bonus processing.
“Japan was our highest-priority APAC hire but the 36 Agreement requirement and strong dismissal protections made us nervous. Vectis knew every step — our Tokyo engineer was onboarded in 2 days, fully compliant.”
Public Holidays in Japan
Japan has 16 national public holidays — among the most of any major economy. Vectis tracks all holiday pay obligations automatically.
Japan Hiring FAQs
Common questions about employing staff in Japan.
Ready to hire in Japan?
Vectis is your Employer of Record in Japan — handling Labour Standards Act compliance, 36 Agreements, social insurance, My Number, and the strong worker protections of Japanese law.
Hire in Japan compliantly — 36 Agreement & all
No entity required. Onboard in 48 hours.