Discover everything you need to know about employment contracts in Japan, starting from the hiring process to pre-employment agreements. This comprehensive guide provides valuable insights into the legal obligations and rights associated with employment contracts, ensuring a smooth transition into the Japanese workforce.

In Japan, employment contracts serve as powerful legal agreements that establish the terms and conditions of employment. When joining a company, you will likely enter into an employment contract that outlines the rights and responsibilities of both the employer and the employee. This guide sheds light on the crucial aspects of employment contracts and their significance in the Japanese work environment. When an employment contract is concluded, the relationship between the worker, or laborer, and the employer is established.

Understanding the Employer-Employee Relationship

In general, the employer holds a position of power in the employer-employee relationship. To protect employees from potential abuses, Japanese labor laws have established various rules and regulations. However, employers still have the authority to make certain decisions within the boundaries of the law.

Nevertheless, employers should not abuse their power by engaging in behaviors such as harassment or discrimination. It is essential to create a safe and respectful work environment where employees are valued and not subjected to any form of mistreatment.

Prohibited Clauses in Employment Contracts

While employers have the authority to make certain decisions, there are limitations to what they can stipulate in employment contracts. The following are examples of prohibited clauses:

◆ Prohibition of Harassment or Discrimination:

Employers cannot engage in actions that harm employees physically, emotionally, or psychologically. Harassment and discrimination are strictly prohibited and should never be tolerated in the workplace.

◆ Imposition of Fines:

Employment contracts should not include clauses that impose fines on employees for mistakes or shortcomings. While employees may be held accountable for their actions, it is important to consider the circumstances and allocate responsibility accordingly. In case of disputes, seeking advice from a lawyer is recommended.

◆ Deducting Debts from Salary:

Employers are not allowed to deduct money from employees’ salaries to repay debts owed to the company.

◆ Forcing Savings or Custody of Personal Items:

Employers should not compel employees to save money or hold personal belongings without explicit consent or a specific agreement. This includes important documents, residency cards, passports, mobile phones, and bankbooks. Employees should have full control over their personal belongings.

Recruitment

companies have the freedom to choose who they want to work with. However, this freedom is not absolute. While employers must ensure that candidates are capable of performing the required tasks, they are prohibited from discriminating based on nationality, gender, age, or disability.

Essential Considerations for Workers

Before accepting a job offer, workers should carefully consider the following aspects:

• Job Description: Clearly understand the nature of the work, responsibilities, and expectations.
• Salary: Ensure the offered salary is fair and aligns with industry standards for the position.
• Working Hours: Understand the regular working hours, overtime policies, and any potential overtime compensation.
• Workplace: Identify the physical location of the workplace and any relevant commute considerations.
• Contract Terms: Thoroughly review the employment contract, including the duration, renewal procedures, and termination provisions.
• Communication: Ensure clear communication with the employer regarding any questions or concerns.

Obligations of Employers

Employers have a legal responsibility to provide clear and accurate information to potential employees. This includes:

• Providing Employment Contracts: Employers must provide written employment contracts that clearly outline the terms and conditions of employment.
• Language Accessibility: For foreign workers, employment contracts and related documents should be translated into their native language or simplified Japanese.
• Clear Communication: Employers should ensure clear and understandable communication with foreign workers, using plain language and avoiding jargon.

Work Permit Considerations

Foreign workers must adhere to specific work permit regulations:

• Permitted Work Activities: Unlike Japanese citizens, foreigners’ work activities are restricted based on their visa status. Exceeding the permitted scope of work without proper authorization from the Immigration Bureau constitutes illegal employment.
• Legal Consequences: Illegal employment can lead to the revocation of the worker’s visa and potential deportation. Additionally, the employer may face criminal charges for aiding and abetting illegal employment.
• Visa Application Process: Employers should be mindful of the visa application process and ensure that the employee’s work activities align with their visa status.

Fair Compensation Practices

Equal pay for equal work is a fundamental principle in Japan. However, there are legitimate reasons for salary variations:

• Individual Skills and Experience: Differences in skills, experience, and job performance may justify salary variations.
• Legal Requirements: In certain cases, minimum wage regulations or visa requirements may dictate salary levels.

Formalizing Employment Offers

A job offer in Japan typically involves a formal process:

• Letter of Intent (Nai’tei): A Nai’tei is a preliminary offer that signifies the company’s intention to hire the candidate. It is considered a formal step, similar to a reservation, and should be treated as such.
• Employment Contract: Upon acceptance of the Nai’tei, a formal employment contract is signed, outlining the detailed terms and conditions of employment.
• Mutual Commitments: Both parties, the employer and the employee, are bound by the terms of the employment contract.

Trial Periods

Trial periods are common in Japan and serve as an assessment phase for both the employer and the employee:

• Purpose: Trial periods allow employers to evaluate the employee’s suitability for the role and the employee to gain hands-on experience and assess the work environment.
• Duration: Trial periods are typically limited in duration to ensure they serve their intended purpose effectively. Excessive trial periods may raise concerns.
• Compensation: During the trial period, compensation may be lower than after full employment. However, it should remain fair and align with industry standards.
• Transition to Full Employment: Upon successful completion of the trial period, the employee transitions to full employment with the agreed-upon salary and benefits.

Termination of Employment

Termination of employment should follow a fair and transparent process:

• Performance Evaluation: Before termination, employers should conduct a performance evaluation to identify any areas for improvement or potential reasons for termination.
• Just Cause: Termination must be based on just cause, such as poor performance, misconduct, or violation of company policies.
• Notice Period: Employers are obligated to provide a reasonable notice period to the employee before termination.
• Severance Pay: In some cases, severance pay may be applicable depending on the reason for termination and the employee’s length of service.

If You Encounter an Issue

While these are some of the prohibited clauses, it is important to note that specific situations may vary. If you encounter any concerns or doubts about the terms of your employment contract, consider consulting with your employer or seeking guidance from labor standards offices, social insurance labor consultants, or legal professionals.

Take away

Understanding employment contracts in Japan is crucial for anyone seeking employment in the country. By familiarizing yourself with the rights and obligations outlined in these agreements, you can ensure a fair and secure working environment. Remember to review your employment contract carefully and seek professional advice when needed to protect your rights as an employee.

Start your journey toward a successful career in Japan by comprehending the intricacies of employment contracts.

※Translated from a Japanese article. Find the original article here.