Background Checks

There are no statutory limitations on conducting background checks.

• Personal Information requires that sensitive personal information (e.g., race, creed, social status, medical history, criminal record) must not be collected without the applicant’s consent.
• Employers are prohibited from acquiring information that could lead to social discrimination, such as race, ethnic group, social status, family origin, domicile or birthplace, creed, personal beliefs, or history of union membership.
• It is common to ask for a declaration of criminal records and to require a medical examination. Sensitive information must be collected in a socially acceptable manner and securely retained.

Verification and New Hire Reporting

Employers must verify the identity and employment eligibility of new hires. This includes checking qualifications and previous employment history.

Employers are required to report new hires to relevant government agencies, including social insurance enrollment.

Onboarding Process & Documentation

Employers in Japan are generally required to collect and maintain the following documentation:

• Employment Contract: Must outline working conditions, wages, working hours, and other terms. This is mandated under the Labor Standards Act (LSA).
• Personal Identification: Such as residence card (for foreign nationals), My Number (social security and tax number), and bank account details for salary payments.
• Health and Safety Records: Required under the Industrial Safety and Health Act.
• Tax and Insurance Forms: Including income tax withholding forms, employment insurance, and health insurance enrollment documents.

Healthcare

Healthcare for employees is primarily managed through the Employee Health Insurance (EHI) system. Here are the key points:

• Covers medical expenses for employees and their dependents. This includes hospitalization, outpatient care, and prescription medications.
• Employers are required to automatically enroll employees who work 20 hours or more per week.
• The cost of EHI premiums is shared between employers and employees. Employers typically cover around 50% of the premiums.
• EHI also includes benefits such as maternity and paternity leave, nursing care insurance for employees aged 40-64, and annual health check-ups.
• Self-employed individuals and those not covered by EHI can enroll in National Health Insurance (NHI), which provides similar coverage

Retirement

There are no mandatory pensions or statutory benefits provided to employees, many companies have voluntarily implemented various schemes and incentives.

Social Security

At this time, Vensure does not have social security details available.

Employment Contract Details

While verbal contracts are technically valid, written contracts are highly recommended to avoid misunderstandings and legal disputes.

Key Components

• Job Description: Outline of the employees’ duties and responsibilities.
• Salary: Specification of wages, including payment method and payday.
• Work Hours: Explanation of the work schedule and any expected overtime.
• Contract Duration: Clearly state whether the contract is for a fixed-term or indefinite

Probation Period

Probationary periods typically last between 3 to 6 months. While there is no strict legal limit, a period longer than 6 months may be considered unreasonable and against public order.

Visas

Types of Visas

• Temporary Visitor Visa: For tourism, business meetings, and visiting relatives or friends (typically allows for a 90-day stay).
• Work Visa: For paid work, including subcategories like Engineer/Specialist in Humanities/International Services, Skilled Labor, etc.
• Specific Activity Visa: For designated activities not covered by other visa types, such as working holidays.
• Student Visa: For individuals undertaking educational courses in Japan.
• Family Visa: Permits family members to join a resident in Japan.

Application Process

• Determine Visa Type: Identify the visa suitable for your stay based on the purpose and duration of your visit.
• Gather Required Documents: Common documents include valid passport, visa application form, recent passport-sized photographs, itinerary and travel documents, financial proof, employment verification.
• Submit Application: Submit the completed application with the gathered documents to the Japanese embassy or consulate in your home country, provide English translations for non-English documents if required.
• Processing Time: Generally, takes approximately 5-10 business days for a tourist visa, but longer for work visas. Apply well in advance of your intended travel dates.

Additional Considerations

• Immigration and Residency: Ensure your residence card is provided and fully filled out upon arrival for longer stays.
• Visa Extensions: Extensions may be available depending on your visa type and circumstances. Apply before your current visa expires.
• Legal Compliance: Be aware of Japan’s strict immigration laws and comply with all visa conditions during your stay.

Independent Contractors

The distinction between an employee and an independent contractor is based on the actual working relationship, not just the contract title. Misclassification can lead to legal and financial penalties.

Key factors include:

• Control & Direction: Employees follow company-set methods and schedules; contractors work autonomously.
• Exclusivity: Employees are often exclusive and subordinate; contractors are independent.
• Payment Method: Employees are paid by time; contractors by results.
• Tools & Equipment: Employees use company resources; contractors use their own.
• Business Risk: Contractors bear more risk and responsibility.
• Nature of Work: Core business tasks suggest employment.

Independent contractors are typically engaged via service agreements (業務委託契約) governed by the Civil Code, not labor law.

Essential contract terms:

• Scope of work and deliverables
• Duration and termination conditions
• Payment terms and schedule
• Confidentiality and IP clauses
• Liability and dispute resolution

Paid Time Off

Set in the employment contract as dependent upon the years of employment. Any unused day expires after two years.

• Six months of service are entitled to 10 days of paid leave
• one and a half years’ service is entitled to 11 days of paid leave
• Two and a half years of services are entitled to 12 days of paid leave
• three and a half years of services are entitled to 14 days of paid leave
• four and a half years of services are entitled to 16 days of paid leave
• five and a half years of services are entitled to 18 days of paid leave
• Six and a half years of services are entitled to 20 days of paid leave

Public Holidays

No legal requirements to pay for public holidays, it is common to grant those days as paid days off.

• New Year’s Day
• Coming of Age Day
• National Foundation Day
• Emperor’s Birthday
• Vernal Equinox Day
• Shōwa Day
• Constitution Memorial Day
• Greenery Day
• Children’s Day
• Marine Day
• Mountain Day
• Respect for the Aged Day
• Autumnal Equinox Day
• Sports Day
• Culture Day
• Labor Thanksgiving Day

Bereavement

Employees are entitled to leave in the event of the death of an immediate family member.

• a father, mother, spouse, or child, an employee is entitled to 5 days
• a grandparent, grandchild, sibling, child’s spouse, or spouse’s parent is entitled to 3 days

Maternity Leave

Employees are entitled to 14 weeks of paid leave, six weeks before the due date, and eight weeks after. Payments are made by Social Insurance, which s 420,000 JPY ($2,940.56 USD) per child. If the employee is enrolled in the employees’ Health Insurance. They may receive a Maternity Allowance of 2/3rds of the regular salary rate from 42 days before birth until 56 days after delivery.

Paternity Leave

Employees are entitled up to one year of unpaid leave after the birth of a child. Employees receive partial allowance from social security. Employees can take up to four weeks of leave within eight weeks after the birth, in one or two installments.

Parental Leave

See above Paternity Leave section for details about parental leave.

Sick Leave

Sick leave is not mandatory.

Termination Requirements

Termination must be objectively reasonable and socially acceptable, especially for indefinite-term contracts. Common grounds include:

• Poor performance or incapacity
• Misconduct or violation of company rules
• Economic redundancy (with strict conditions)

Employers must demonstrate they made best efforts to avoid dismissal, such as offering transfers or early retirement.

Labor Tribunal and Dispute Risk

• Employees can challenge dismissals through the Labor Tribunal.
• Courts often favor employees, and employers may face reinstatement orders or compensation liabilities if the dismissal is found to be unfair.

Notice Period

A minimum of 30 days’ notice is required, or wages in lieu of notice.

Severance Pay

Japanese labor law does not require employers to pay severance upon termination.

The only exception is when severance is paid in lieu of notice—if an employer terminates an employee without the required 30-day notice, they must pay the employee 30 days’ worth of wages instead.

Despite the lack of a legal mandate, many companies voluntarily offer severance packages to:

• Encourage voluntary resignation
• Avoid legal disputes
• Maintain a positive corporate reputation

Severance may be included in:

• Individual employment contracts
• Company work rules
• Collective agreements

In such cases, the employer is legally bound to honor the agreed severance terms

Unemployment Insurance

Unemployment compensation is managed through the unemployment insurance system known as koyou hoken (雇用保険) or shitsugyou hoken (失業保険)

• To qualify for unemployment benefits, the employee must have been enrolled in the unemployment insurance system for at least six months. They need to be working at least 20 hours per week and expect to be employed for at least 31 days
• Both employers and employees contribute to the system. The insurance premium rate is 1.10%, with the employer paying 0.7% and the employee paying 0.4%
• The amount and duration of benefits depend on factors such as their age, length of employment, and reason for leaving the job. Typically, benefits are provided through Hello Work offices, which also assist in job placement

Anti-Discrimination Practices

Labor laws prohibit discrimination in wages, working hours, or working conditions based on nationality, creed, or social status. It also prohibits wage discrimination between men and women.

Sexual harassment as any disadvantage in working conditions or harm in the working environment due to sexual speech or behavior. Employers must:

• Clarify and educate employees on anti-sexual harassment policies.
• Establish consultation desks for complaints.
• Conduct and prompt and appropriate investigations.
• Protect the privacy of both accuser and accused.
• Prohibit dismissal or mistreatment of workers involved in harassment investigations

Power harassment as damaging behavior exploiting a superior position. Employers must:

• Introduce measures to prevent power harassment.
• Establish consultation procedures for complaints.
• Prohibit dismissal or mistreatment of workers who complain about power harassment

Workplace Safety Standards

Employers must implement safety measures, conduct regular health checks, and provide safety training. They are also required to monitor the work environment and manage hazardous substances.

Workers have the right to a safe working environment and can refuse unsafe work without fear of retaliation

Workers’ Compensation

Worker’s Accident Compensation Insurance (労働者災害補償保険, Rōdōsha Saigai Hoshō Hoken) is a government insurance program that provides benefits to workers who suffer from work-related injuries, illnesses, or death. Here are the key points:

• All companies employing workers must provide this insurance. The employer pays the premiums, and workers are not responsible for these payments.
• The insurance covers medical expenses, lost wages, disability pensions, and compensation for bereaved families.

Labor Law Sanctions

Labor Standards Act (LSA): Sets minimum standards for working conditions, including wages, working hours, and safety.

Labor Union Act (LUA): Governs collective labor relations and protects the rights of workers to organize and bargain collectively.

Industrial Safety and Health Act: Ensures safe and healthy working environments.

Employment Security Act: This act regulates employment practices to ensure fair treatment of workers. Violations can lead to administrative sanctions.

Act on Improvement of Employment Management for Part-Time and Fixed-Term Workers: This act aims to improve working conditions for part-time and fixed-term workers. Employers who fail to comply can face penalties.

Temporary Staffing Services Law: This law regulates the proper operation of worker dispatching undertakings and improves working conditions for dispatched workers. Non-compliance can result in sanctions.