Employment Law Regime
Japanese employment law is governed by various laws and regulations including the Labor Standards Act, the Industrial Safety and Health Act, and the Workers’ Accident Compensation Insurance Act. Employers in Japan are required to comply with these laws and regulations, as well as any additional legislation that impacts employment.
Employment Contracts
In Japan, a written contract is not mandatory, but it is recommended to have one to avoid disputes. However, fixed-term employees must be hired on a written contract. The Labor Contract Act sets out the minimum requirements for employment contracts and governs the relationship between employers and employees. Employers are also required to provide employees with a document outlining the terms and conditions of their employment, such as working hours, wages, and holidays.
In Japan, certain terms are implied in every employment contract, such as the employee’s duty of fidelity and confidentiality, and the employer’s obligation to pay wages. Employers are also required to provide their employees with annual leave, sick leave, and other statutory benefits.
Holiday’s in Japan
New Year’s Day – January 1
Coming of Age Day – Second Monday of January
National Foundation Day – February 11
Emperor’s Birthday – February 23
Vernal Equinox Day – Around March 20-21
Showa Day – April 29
Constitution Memorial Day – May 3
Greenery Day – May 4
Children’s Day – May 5
Marine Day – Third Monday of July
Mountain Day – August 11
Respect for the Aged Day – Third Monday of September
Autumnal Equinox Day – Around September 22-24
Health and Sports Day – Second Monday of October
Culture Day – November 3
Labor Thanksgiving Day – November 23
The Emperor’s Birthday – December 23
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Termination of Employment
Notice Period
In Japan, employers are required to give written notice to employees before terminating their employment contracts. The duration of the notice period depends on the length of service, and ranges from 2 weeks to 30 days.
Severance Benefits
Employees who have worked for at least one year are entitled to severance pay if they are dismissed for reasons unrelated to their own conduct or ability. The amount of severance pay depends on the length of service, and ranges from 30 days’ wages to 20 months’ wages. Additionally, employees who have worked for at least 3 years are entitled to a retirement allowance, which is calculated based on their length of service and monthly salary.
Pension
Employees in Japan are also entitled to participate in the Employees’ Pension Insurance and the Health Insurance and Nursing Care Insurance systems, which provide retirement benefits and health insurance, respectively. Employers are required to contribute to these systems on behalf of their employees.
