Japan
Capital: Tokyo
Currency: Japanese Yen- JPY
Overview of Japanese Labor Law and Employment Policy
Employment Law Overview
- Key Laws and Regulations:
- Labor Standards Act
- Trade Union Act
- Industrial Safety and Health Act
- Minimum Wage Act
- Legal Characteristics:
- Aims to protect employee rights and promote workplace harmony
- Sets minimum standards for working hours, wages, holidays, dismissal, etc.
Employment Contract Requirements
- Contract Types:
- Fixed-term contracts
- Indefinite-term contracts
- Contractual Terms:
- Must include provisions on job description, compensation, working hours, rest periods, etc.
- Language and Currency:
- Contracts must be in Japanese and denominated in Japanese Yen
Working Hours Regulations
- Standard Working Hours: 40 hours per week
- Rest Days and Breaks:
- At least one rest day per week
- At least 30 minutes of rest per day
Holiday Policy
- Annual Leave:
- 10 days of paid annual leave after 6 months of employment
- Annual leave increases with years of service, up to a maximum of 20 days
- Public Holidays: 16
- Special Leave:
- Sick leave: No mandatory provisions, but employers typically provide paid sick leave
- Maternity leave: 14 weeks (6 weeks prenatal, 8 weeks postnatal)
- Paternity leave: Up to 4 weeks
- Childcare leave: Up to 1 year
Employee Dismissal and Termination
- Notice Period: 30 days
- Severance Pay: No mandatory provisions, but employers typically provide severance pay
- Unfair Dismissal Protection:
- Employers must have a valid reason to dismiss an employee
- Employees can file a complaint for unfair dismissal
Taxation
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Personal Income Tax:
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Salary Range (JPY) Tax Rate 0 - 1,950,000 5% 1,950,001 - 3,300,000 10% 3,300,001 - 6,950,000 20% 6,950,001 - 9,000,000 23% 9,000,001 - 18,000,000 33% 18,000,001 - 40,000,000 40% 40,000,001 and above 45%
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Social Insurance Contributions:
- Public health insurance: 4.9%
- Pension insurance: 9.15%
- Unemployment insurance: 0.95%
- Long-term care insurance: 0.9%
- Workers' compensation insurance: 0.3%
- Childcare allowance: 0.36%
Health Insurance
- Insurance Policy:
- All employees must participate in the National Health Insurance
- Insurance Coverage:
- Medical, dental, and hospitalization expenses
Compensation and Benefits
- Minimum Wage: Set by each prefecture, with Tokyo having a minimum hourly wage of JPY 1072
- Compensation Structure:
- Monthly salary system
- Bonuses: Not mandatory, but typically 13th or 14th month salary
Work Permits and Visas
- Permit Requirements:
- Foreigners require a work permit or visa to work in Japan
- Application Process:
- Contact the Japanese embassy or consulate in your country for application procedures
Confidentiality and Non-Compete Clauses
- Enforceability:
- Confidentiality and non-compete clauses are enforceable in Japan
- Common Provisions:
- Restrict employees from disclosing confidential information after leaving employment
- Restrict employees from working for competitors after leaving employment
Training and Development
- Legal Requirements:
- Employers must provide safety training and skills enhancement training
- Government Support:
- Government provides subsidies and incentives to encourage corporate training
Workplace Diversity and Inclusion
- Legal Requirements:
- Prohibits discrimination based on gender, age, race, religion, or disability
- Enforcement Measures:
- Government and businesses implement policies and programs to promote diversity and inclusion
Remote Work Policy
- Legal Framework:
- No specific legal framework, but remote work is becoming increasingly common
- Tax and Insurance Implications:
- Remote work may impact taxation and social insurance contributions
Authoritative Website Addresses
- Ministry of Health, Labour and Welfare: https://www.mhlw.go.jp/