How works hiring in Japan_ Employer of Record

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Written By Charlotte Miller

Companies wishing to recruit and manage teams in Japan may use the professional employment organization (PEO) and employer of record (EOR) services. The archaic practice of registering a legal corporation in Japan in order to engage in employment costs money and takes months (thousands of USD). Employers may quickly recruit and manage workers in Japan in compliance with local labor rules thanks to INS Global’s employer of record and PEO services.

Employer of Record Japan

Companies that wish to recruit employees in Japan but do not have a legal presence there might use Employer of Record (EOR) services. To INS, employment and whole responsibility are outsourced.


You interview and choose the Japanese job applicants you wish to recruit, and you set up a local labor contract with your new hire.

creates a service agreement between your business and another

arranges, administers, and executes payroll in Japan while adhering to all applicable labor rules.

➎ While INS Global handles payroll and HR responsibilities, you continue to work normally and manage your workforce in Japan.

Our EOR service consists of:

Japan Payroll & Global PEO

Companies with a legal presence in Japan who wish to outsource their payroll might use Professional Employment Organization (PEO) services. Shared employment obligations exist between the EOR and your business.

INS arranges, administers, and processes payroll for your local workers in complete accordance with local employment rules. You interview and choose the persons you wish to recruit in Japan.

While INS Global handles payroll and HR compliance, you continue to work normally and manage your workforce in Japan.

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Occupational Law

The Japanese Civil Code establishes the parameters of the framework of labor law in Japan. Articles 622 and 632 define employment contracts, a labor contract, and a mandate contract, respectively. The parties are allowed to choose how their contracts will work. However, regardless of the designation in the contracts, worker rights still hold true.

Japanese workers are given a lot of protection by the nation’s employment laws and via long-standing legal decisions. The Japanese Ministry of Health, Labor, and Welfare (MHLW) often issues announcements and rules that are favorable to employees. Additionally, social expectations and cultural conventions, such as the conventional idea of “lifetime employment,” also play significant roles in determining how the employer-employee relationship develops.

Employment Agreement

In Japan, employers are required to furnish workers with specific written employment conditions. Japanese employment agreements are brief and straightforward. They are meant to be an addition to work regulations and labor legislation. Although a contract with only English is permitted, contracts with both Japanese and English are more typical. If a contract has two versions, it should specify which one will be chosen in the event of a disagreement.

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In Japan, Paid Vacation

Employees who have worked for the company for six months and have an attendance rate of 80% or above are entitled to a minimum of ten days of paid vacation.

After the first two years of work, paid annual leave rises by two days each year, with a maximum of 20 days per year, and by one day during the first two years of employment. Employees have a year to carry over any unused annual leave.