🇯🇵 Hiring in
Japan
What every employer needs to know before hiring in Japan — contracts, payroll setup, social security, and HR compliance obligations.
Key Employment Facts — Japan
Minimum Wage
¥ 1,055
Annual Leave
10 days
Notice Period (min)
30 days
Probation Period (max)
3 days
Maternity Leave
14 weeks
13th Month Pay
Not required
How to Hire in Japan — Step by Step
Verify your hiring structure
Decide whether to hire via a local legal entity, a Professional Employer Organisation (PEO), or an Employer of Record (EOR). An EOR lets you hire in Japan without setting up a local company.
Issue a compliant employment contract
All employees in Japan must receive a written employment contract. It must cover job title, salary, working hours, notice period, and leave entitlements before or on the first day of employment.
Register for payroll and tax
You must register with the relevant Japan tax authority before making any salary payments. Payroll must be run in local currency and employer contributions must be filed on time.
Enrol in social security
Employers in Japan are required to enrol employees in the national social security scheme from day one. Both employer and employee contributions are mandatory.
Run compliant payroll
Pay must meet the statutory minimum wage, be paid on the agreed frequency, and include all mandatory deductions. Keep payslip records for the legally required retention period.
Understand termination rules
Notice periods, severance, and redundancy rules in Japan are governed by employment law. Always seek local legal advice before terminating an employment contract.
Contractor Classification Rules — Japan
How Japan distinguishes employees from independent contractors, and the risks of misclassification.
Classification Test
Multi-factor test — Ministry of Labour guidelines on employee vs contractor
Key Classification Factors
- ✓Binding nature of instructions
- ✓Integration into business operations
- ✓Inability to refuse work
- ✓Substitution rights
- ✓Provision of tools and equipment
- ✓Exclusivity of services
- ✓Fixed remuneration regardless of output
Misclassification Penalties
Labour Standards Inspection Office can order reclassification. Back-payment of social insurance (health and pension), employment insurance, and labour standards entitlements. Criminal penalties for Labour Standards Act violations.
Off-Payroll / IR35 Equivalent
Japan has no direct IR35 equivalent. The Freelance Protection Act 2024 addresses some misclassification concerns from the contractor side.
Platform Worker Law
Freelance Protection Act (Furiransu Shinko Ho) — enacted 2023, in force November 2024. Requires written contracts for freelance engagements, payment within 60 days, prohibition on abuse of superior bargaining position.
Safe Harbour Criteria
Written service agreement, registration as sole proprietor (kojin jigyo nushi), invoicing with proper tax documentation, multiple clients, own tools and equipment, freedom to set working hours.
Japan's Freelance Protection Act (effective November 2024) is a landmark protection for independent contractors — requiring written contracts, payment within 60 days, and prohibiting harassment and abuse by clients. The Act applies to individuals operating without employees. Traditional classification tests remain in place for employment law purposes. The gig economy (Uber Eats, delivery platforms) is subject to ongoing regulatory attention.
Work Permits — Japan
Main visa and work permit routes for hiring foreign nationals in Japan.
Highly Skilled Professional Visa (HSP)
Processing
14–30 days
Validity
60 months
Cost
Varies
Sponsor Needed
No
Points-based visa for highly qualified professionals. 70+ points required (based on academic background, professional career, salary, age, and Japan-specific factors). Fast-track: 14-day processing. Preferential treatment: permanent residence after 3 years (standard) or 1 year (80+ points). No employer sponsorship required for type i (advanced academic/research) and type ii (advanced specialist/technical).
Official source ↗Engineer/Specialist in Humanities/International Services (Gijinkoku)
Processing
30–90 days
Validity
60 months
Cost
Varies
Sponsor Needed
Yes
Main work visa for white-collar professionals in Japan. Covers engineering, IT, finance, marketing, education, and international business roles. Requires relevant university degree or 10 years professional experience. Employer must be a Japanese entity or foreign company with Japanese operations. Salary must meet Japanese minimum standards.
Official source ↗Specified Skilled Worker (Tokutei Gino)
Processing
30–60 days
Validity
60 months
Cost
Varies
Sponsor Needed
Yes
For workers in 16 designated shortage industries (construction, hospitality, food service, agriculture, care, shipbuilding, etc.). SSW-1: up to 5 years, no family. SSW-2: unlimited renewal, family permitted (only for construction and shipbuilding sectors as of 2024). Skills and Japanese language tests required. Quota system for some industries.
Official source ↗EOR Intelligence
Skip the entity setup — hire via EOR in Japan.
An Employer of Record handles all local compliance on your behalf.
This guide is for informational purposes only and does not constitute legal or HR advice. Employment law in Japan is subject to change. Always consult a qualified local employment lawyer before hiring.
About This Guide
- ✓ Sourced from official government publications
- ✓ Updated monthly — always current rules
- ✓ For guidance only — not legal advice
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