This article is meant to be a general guideline and reference for Labor Standards in Japan. It is not meant to be taken as legal advice. If you are concerned about your contract or working conditions, please contact the Board of Labor or a lawyer. Contact information for the Board of Labor for those residing in Tokyo can be found at the bottom of the article.
If you’re living and working in Japan, chances are you’ve experienced at least one “black” company. But maybe you’re not here yet. Maybe you’re crossing your T’s and dotting your I’s before making that final jump. Here’s what you need to know about work culture in Japan, and the labor laws you should be aware of.
→What is a black company?
In Japan, a “black” company is one that blatantly ignores labor laws. Unpaid overtime. Power harassment. No paid time off. These are some characteristics of “black” companies. And, unfortunately, it’s not uncommon in Japan. It’s not socially acceptable to be meiwaku, or troublesome for others, in Japan. As such, many employees would rather struggle along with the company’s questionable employment regulations. Changing companies will also put a damper on your ability to get hired elsewhere. Many Japanese may see themselves as stuck in their company for life. This is compounded by the fact that many companies promote their employees based on seniority, rather than qualifications. It’s a sad fact that there are many toxic components to Japanese work culture.
→But I’m not Japanese!
This article is not a discussion about racial identity, nor whether you will ever be properly “accepted” in Japan. However, this does bring up a good point. If you don’t look Japanese, chances are you won’t be held to the same societal standards as Japanese, or those who “look” Japanese. There are pros and cons to this, of course, but in terms of work culture it can give you a bit of leeway to defend yourself against black business practices. And you should, because nobody else will.
→So what do I need to know about Japanese labor law?
First, let’s discuss the different types of employment in Japan. You can be a keiyaku-shain (contract employee), se-shain (permanent employee), and haken-shain (temporary employee).
For contract employees, the period of contract is clearly stated. For permanent employees, the period of contract is not stated and is assumed to be on a continuing basis.
So, let’s dive into the basics.
What Your Contract Must Clearly State
(Article 15 of the Labor Standards Law)
Before signing anything, check your contract carefully. There are a number of items outlined in the Japanese labor law that must be clearly written in your contract.
- The period of contract, for keiyaku-shain
- Outlines for renewal of contract, for keiyaku-shain
- Work location
- Required duties
- Working hours and break times
- Wages, method of payment of wages, closing date for calculation of wages, and a clearly defined payment date for wages
- Matters with regards to increase in wages, e.g. bonuses, raises, etc.
- Expenses to be borne by employees, e.g. housing, transportation, etc.
- Compensation for employees, such as for training or conferences
- Travel expenses, and how much of the cost will be covered by the employer*
*note that it is not required by law for an employer to compensate travel expenses; however, it is common practice for companies to do so
It is not legal for your contract to contain damages to be paid to the company due to breach of contract.
It is also not legal for your contract to contain clearly defined amounts for potential damages against the company. However, the company can hold the employee liable for damages in certain circumstances. If your employer is trying to claim damages from you, please seek proper legal advice regarding the matter.
Working Hours
(Articles 32, 34, and 35 of the Labor Standards Act)
In principle, employees should not exceed:
- 8 hours per day
- 40 hours per week
This excludes the agricultural, livestock, and fishing industries. Employees who exceed these hours are subject to receive compensation.
The Labor Standards Act also specifies that employees are entitled to the following:
- 1 day off per week
OR
- 4 or more days off per 4-week period
Additionally, break periods are broken down as:
- If you work 6 hours or more, you’re entitled to a 45 minute break
- If you work 8 hours or more, you’re entitled to a 1 hour break
Paid Time Off
(Article 39 of the Labor Standards Act)
Please refer to the following chart provided by the Ministry of Health, Labor, and Welfare to calculate how much nenkyuu, or time off, you’re legally entitled to.
Bear in mind that your employer is able to legally deny your requests for time off if they can prove that your request would significantly impact operations or income. Otherwise they must oblige your request.
You begin accumulating nenkyuu after 6 months of employment.
Nenkyuu carries for two years, as long as you’re employed through the same company. For example:
You join a company as a full time employee in April of 2019. In October of 2019, you will be entitled to 10 days of paid time off. In principle your employer cannot deny your requests to use this time, unless it will significantly impact the company. By March of 2020, you have only used 5 of your 10 days. At the start of the following year, upon renewal of your contract, you gain an additional 10 days. Any time off you use will be deducted from the remaining 5 days before continuing into the new 10 days.
So, in essence, you could save your nenkyuu from your first year and have 20 days in your second. But into your third year, you can only carry over the 10 days from the previous year, if unused.
Overtime, Overtime Pay, and Working Nights
(Article 37 of the Labor Standard Act)
The Labor Standards Act sets the guidelines for overtime as follows:
- Time over 40 hours/week or 8 hours/day – 25% increase from your base pay
- Nights (10pm – 5am) – 25% increase from your base pay
- Work on statutory days off – 35% increase from your base pay
Your employer is required to provide you with a written agreement regarding overtime, if it is not stated in your contract, and it must be reported to the Labor Standards Office.
Laws Regarding Being Laid Off
(Articles 19, 20, 21, 23, 24, and 26 of the Labor Standards Act)
In
principle, if your employer decides to terminate your contract, you
are entitled to 30 days of notice. If they do not give you 30 days
notice, they will be required to pay you up to 30 days worth of
wages. For example: If your employer were to tell you they were
letting you go in 10 days time, you would be entitled to the pay from
that 10 days plus an additional 20 days worth.
It is not
possible for an employer to end the employment agreement for the
following reasons:
- You cannot be terminated for receiving treatment for any injuries received in direct relation to your job.
- You cannot be terminated in the 30 days after returning to work from treatment.
- Women cannot be terminated during the period of rest before or after childbirth, nor within 30 days of returning to work.
Furthermore, in the event of absence from work due to reasons directly attributed to the employer, the employer is required to pay 60% of the average wage while the employee is receiving treatment.
Upon completion of a contract, or termination of a contract either by the employer or employee, the employer is required to pay the remaining wages within 7 days, if requested to do so.
For dispatch workers: If you are terminated from your place of dispatch, your contract remains valid with your dispatching agency, and will continue. Your employer (dispatch agency) will be required to continue paying you in full.
Resignation
(Article 627 of the Civil Code)
In general, it is better to try and adhere to the notice period indicated in your contract. However:
- If your contract does not specify a period of notice for resignation, you are only required by law to give two weeks notice
- After your first year of working with a same company as a keiyaku-shain, you are only legally required to give two weeks notice despite what may be written in your contract
- If you do not adhere to the specified period of notice in your first year of a contract, your company could try to sue you for damages
→I think there may be some trouble with my company. What now?
For legal consultation, please contact your local Labor Consultation Center, or a lawyer. The Tokyo Labor Consultation Center provides free consultation, and has English and Chinese language translators available during the week. Please check the information below.
| Langauge | Dates | Times | Telehpone |
|
English Language Consultation |
Monday – Friday |
2pm – 4pm |
03-3265-6110 |
|
Chinese Language Consultation |
Tuesday – Thursday |
2pm – 4pm |
03-3265-6110 |
You could also consider joining a union, such as the General Union. Unions can go to bat for you, help with legal consultation, or point you in the right direction. Joining a union can provide you with an extra security net should you find yourself in need of help.
J-Life 