Japan Employment Guide
Japan Employment Guide
Japan is in East Asia, consisting of main islands like Hokkaido, Honshu, Shikoku and Kyushu, bordering the Pacific (east) and Sea of Japan (west). It has ~125 million people; Japanese is official, and Tokyo is the capital. Its highly developed economy focuses on manufacturing and services, with global influence in auto, electronics, machinery and IT, while finance, tourism and export trade also matter. Labor laws (per Labor Standards Act) protect wages, hours, leave and social security. Standard workweek: 40 hours (overtime needs extra pay or time off). Salaries are usually monthly (avg. JPY 350,000 pre-tax). Laws cover paid leave and protect contract/temp workers, balancing interests for a fair, stable labor market.
Check recruitment costs
Currency
Japanese Yen (JPY)
Capital
Tokyo
Official language
Japanese
Salary Cycle
Monthly
Our Employment Guide in Japan
Browse the following tags to learn all about hiring employees in Japan
Essential Elements of Japanese Employment Contracts
When drafting employment agreements in Japan, contracts must be written in Japanese, though bilingual versions are acceptable for clarity. Both parties must sign a written document to formalize the arrangement.
A comprehensive employment contract should clearly specify the following components:
- Full name of the employee
- Employment commencement date
- Duration of employment
- Detailed job description and responsibilities
- Contract term specifics
- Designated workplace location
- Nature of work duties
- Standard working hours
- Shift rotation protocols (if applicable)
- Overtime work requirements
- Break periods, holidays, and leave entitlements
- Compensation structure, calculation method, payment dates
- Termination and resignation procedures
International Workforce Considerations
Companies like SailGlobal often implement bilingual contracts to ensure foreign employees fully understand their rights and obligations. This practice has proven effective in multinational corporations operating in Japan, reducing misunderstandings and legal disputes.
Understanding Probation Periods in Japan
While probationary periods aren't legally mandated in Japan, most organizations implement 3 to 6-month trial periods as standard practice. This allows both employer and employee to assess compatibility before committing to long-term employment.
Following the initial probation, companies may extend the evaluation period for up to six additional months if necessary. However, SailGlobal recommends establishing clear performance metrics from the outset to ensure fair assessment.
Best Practices for Probation Management
Successful international companies typically conduct regular feedback sessions during probation periods. This proactive approach helps identify training needs early and supports smoother integration for global hires transitioning into Japanese workplace culture.
Hire easily in Japan
Compare employee hiring costs across over 100 countries worldwide, helping you accurately calculate labor costs. Try it now
Cost Calculator
Please select the country/region you wish to recruit from, and the calculation can be done with just a few clicks.
USD