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Everything you need to know to hire compliantly in Japan

Employer of Record (EoR) in Japan

Employment contracts in Japan

Payroll and benefits in Japan

Leave and time off in Japan

Employee protection in Japan

End of employment in Japan

Recent developments in Japan

We understand the challenges of keeping up with regulatory changes. That’s why we actively monitor these changes, so you don’t have to. Read on to discover what’s been happening in the employment space in Japan.

Extension of parental leave (2024)

Japan has introduced new amendments to extend parental leave entitlements as part of its ongoing efforts to encourage work-life balance and support working parents. As of 2024, both mothers and fathers are now entitled to take a more flexible leave, including partial returns to work during the leave period. This is designed to boost gender equality and increase male participation in childcare, addressing a long-standing gender gap.

Revision of overtime regulations (2024)

In 2024, Japan has tightened its regulations surrounding overtime hours. Under this revision, employers are required to keep stricter records of employee working hours, and penalties for non-compliance have been increased. This follows the government’s focus on reducing the notorious issue of excessive overtime, known as “karoshi” (death by overwork), while promoting healthier working conditions and more balanced hours for employees.

Support for freelancers and gig workers (2024)

Recognising the growing number of gig workers and freelancers in Japan, new legislation has been enacted to provide them with more robust protections. From 2024 onwards, freelancers are entitled to a clearer framework of rights, including enhanced access to dispute resolution mechanisms and minimum standards for contracts. This marks a significant shift in Japan’s approach to non-traditional employment arrangements, ensuring better protections and rights for independent workers.

Amendments to foreign worker policies (2024)

Japan continues to adapt its policies to address labor shortages by easing restrictions on foreign workers. The 2024 updates provide clearer guidelines for companies hiring foreign labor, ensuring equal treatment between local and foreign employees, including wage parity and working conditions. These changes aim to improve conditions for foreign workers and address Japan’s aging population and shrinking workforce.

Mandatory harassment prevention training (2024)

New regulations were introduced in 2024 requiring all companies to conduct mandatory harassment prevention training for all employees. This development comes as part of a broader push towards fostering safer workplaces free of discrimination and harassment. Employers are now obliged to provide detailed reporting on these trainings to the relevant authorities, ensuring compliance and the effective handling of workplace harassment claims.

Employer of Record in Japan

Hiring internationally can be both costly and time-consuming — but it doesn’t have to be.

When you hire workers in Japan through an Employer of Record (EoR), you can skip the hassle and expense of setting up a legal entity and go straight to growing your business.

Explore our guide to learn everything you need to know about using an EoR in Japan

Employment contracts in Japan

If you want to build a local team in Japan, you need to make sure your employment contracts are compliant and legally enforceable. Thankfully, we have all the information you need — head on our detailed guide about employment contracts in Japan.

We’ll talk about:

Contract terms
Fixed-term contracts and extensions
Regulations around remote work
Working hours and overtime

Payroll & benefits in Japan

Each country has its own laws, rules and customs when it comes compensation and benefits. And for your expansion in Japan to be a success, you need to know what they look like.

That means not only understanding the minimum wage, statutory benefits and employee rights, but also the norms that shape what your employees expect from their employer.

Read our guide to learn everything you need to know about compensation and benefits in Japan.

Leave and time off in Japan

As an employer, you need to understand your employees’ rights when it comes to paid time off. Explore our full guide to learn everything you need to know around leave entitlements in Japan, including paid holidays, maternity and parental leave, public holidays and more.

Employee protections in Japan

Employees in Japan enjoy certain legal protections—and you need to know about them as an employer. Read our detailed guide to protect your business from any potential disputes

We’ll cover:

Whistleblower protections
Data privacy
Equal treatment for temporary agency workers
Anti-discrimination laws
Pay equity legislation

End of employment in Japan

Every working relationship comes to an end — and it’s important to understand what that will look like before it happens. Read our guide to find out what you need to know before you part ways with a worker in Japan

We’ll cover:

Notice periods
Rules about termination
Post-termination restraints
Transfers of undertaking

Let's work together to simplify the complex world of work

Our solutions let you source, engage, manage and pay workers, anywhere in the world — with no compliance worries. Get in touch with our team to find out how we can help you.