Understanding Japan's Working Hours and Employment Regulations

Maximum Working Hours and Overtime Laws in Japan

Japan's labor regulations, overseen by the Ministry of Health, Labour and Welfare, establish clear standards for working hours and overtime to protect employee rights. Employers must adhere to these rules when hiring in Japan to ensure compliance and fair treatment.

Standard Working Hours

Under the Labour Standards Act, the standard workweek runs from Monday to Friday, with a daily limit of 8 hours and a weekly cap of 40 hours. Employees working over 6 hours are entitled to at least 45 minutes of rest, while those exceeding 8 hours must receive a minimum of 1 hour. Breaks should be provided in one continuous period, allowing workers to use them freely. Certain industries, such as retail or hospitality with fewer than 10 employees, may extend weekly hours to 44 under approved exceptions, though daily limits remain strict.

Overtime Compensation

Overtime is restricted to protect health and safety: daily overtime cannot exceed 2 hours, monthly overtime is capped at 45 hours, and annually at 360 hours. In temporary peak periods, annual limits can rise to 720 hours with proper documentation. Regular overtime requires a written agreement filed with labor authorities. Compensation rates are as follows:

Overtime beyond 8 hours daily: 125% of hourly wage
Work on designated rest days: 135% of hourly wage
Late-night work (10 PM–5 AM): 150% of hourly wage
Late-night work on rest days: 160% of hourly wage
Monthly overtime exceeding 60 hours: 150% of hourly wage
Monthly late-night overtime over 60 hours: 175% of hourly wage

Since April 2023, small and medium-sized enterprises must also pay a 50% premium for overtime beyond 60 hours monthly. Highly skilled professionals earning over 10.75 million JPY annually may be exempt from overtime pay under specific agreements, provided they receive 104 rest days annually and health monitoring.

Employment Contracts in Japan

Employment contracts are vital under Japanese law, detailing terms like working hours, overtime, leave, and social insurance. Contracts must align with labor standards; non-compliant clauses are void. While Japanese is the required language, bilingual versions aid foreign employees. Key elements include:

Names of employer and employee
Job responsibilities and work location
Contract duration and termination policies
Compensation, payment cycles, and overtime rules
Leave entitlements and benefits

Clear contracts prevent disputes and ensure legal adherence. For instance, SailGlobal assists firms in drafting compliant agreements for international hires.

Probation Periods in Japanese Employment

Probation periods, though optional, are common in Japan, typically lasting up to 3 months. Employers can dismiss probationary employees if justified and socially acceptable, but after 14 days of work, a 30-day notice or payment in lieu is required unless exceptions apply. Extensions must be reasonable and documented. Post-probation, permanent contracts should be signed, reflecting Japan's cultural emphasis on long-term employment stability.

Japan Labor Laws: Working Hours, Overtime, and Employment Contracts